<p data-end="1587" data-start="1236">The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.</p>

<p data-end="1587" data-start="1236">Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.</p>

<p>The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;</p>

<p>The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;</p>

<p>LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;</p>

<p>Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;</p>

<p>Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;</p>

<p>At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;</p>

<p>“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.</p>

<p>"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.</p>

<p>“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;</p>

<p>Fast Facts: What is Resilience LDI?&nbsp;</p>

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>


The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

<p>Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.</p>

<p>Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.</p>

<p>There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.</p>

<p><img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" /></p>

<p>Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.</p>

<p>"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."</p>

<p>The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;</p>

<p>The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;</p>

<p>Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a></em></p>

<p><em>Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a></em><br />
&nbsp;</p>


Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

<p>Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.</p>

<p>Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.</p>

<p>The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.</p>

<p><img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" /></p>

<p>A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.</p>

<p>Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.</p>

<p>New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.</p>

<p>GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.</p>


First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

<p>A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.</p>

<p>The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.</p>

<p>Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368853]</p>

<p>The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.</p>

<p>GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.</p>

<p>Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368851]</p>

<p>The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.</p>

<p>The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368852]</p>

<p>For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.</p>

<p>GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.</p>

<p>"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.</p>

<p>"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."</p>

<p>[smartcode_project_cta:default project_id=135876]</p>


GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<p><a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.</p>

<p>The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.</p>

<p>&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.</p>

<p>The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.</p>

<p><img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" /></p>

<p>A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.</p>

<p>The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.</p>

<p>"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.</p>

<p>The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.</p>

<p>Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."</p>

<p>The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.</p>

<p><img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" /></p>

<p>The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.</p>

<p>S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.</p>

<p>Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.</p>

<p>John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.</p>


First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

Chinese Buyers

<html><body>
<p>The nation's top sale was on Sydney's upper North Shore when a Pymble home was snapped up pre-auction for $6.5 million.</p>
<p>It sold to a family from China who saw the property just three days before they exchanged.</p>
<p>Menton, marketed as a French Provincial-style oasis, came with saltwater pool, N/S tennis court, and a climate controlled 2,100 bottle wine cellar.</p>
<p><a id="x_mcntLPlnk442456" href="https://www.realestate.com.au/sold/property-house-nsw-pymble-127813398" target="_blank">The 1726 sqm property</a> (above and below) last traded at $2.8 million in 2002.</p>
<p>The vendors decided to take the offer, which was at the high end of their expected range rather than go to auction.</p>
<p>"It's a 'bird in the hand' at the moment," the upper North Shore selling agent told Fairfax Media.</p>
<p><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/2018/4/10/pymble1.jpg" alt=""></p>
<p>Sydney also saw the sale of <a id="x_mcntLPlnk755832" href="https://www.realestate.com.au/property-house-nsw-hunters+hill-126659642" target="_blank" rel="noopener noreferrer">23 Lyndhurst Crescent, Hunters Hill</a>, a five bedroom riverfront home which sold for $6.18 million.</p>
<p>But its sale was at below the $6.2 million price guidance. It was even further<span> down on the $7.6 million guide figure given last October, when it was initially listed for sale.</span></p>
<p><span>It sold to cake makers from <span>Greenacre, <span>one of the three who participated in Saturday’s auction after six had registered, The Sunday Telegraph reported.</span><br></span></span></p>
<p>Sydney's preliminary success rate sat at 67 percent. </p>
<div>Sydney's result from 775 auctions saw a steady 67 percent clearance rate on the prior weekend, but down on the 77 percent at this time last year.</div>
<div> </div>
<div>The nation's strongest clearance rate was in Melbourne, according to CoreLogic, at 69 percent.</div>
<div> </div>
<div>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/auction-wrap.jpg" target="_blank">to enlarge.</a>
</div>
<div> </div>
<div><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/2018/4/10/auction-wrap.jpg" alt=""></div>
<p>Melbourne had some 720 homes listings, increasing on last week’s 65.5 per cent final clearance rate when there was a much lower 152 auctions held given the Easter break.</p>
<p>The auction of dual premiership player Thorold Merrett’s Doncaster East home saw a $1.12 million result.</p>
<p>Philip Webb auctioneer Anthony Webb said local downsizers secured <a id="x_mcntLPlnk103044" href="https://www.realestate.com.au/sold/property-townhouse-vic-doncaster+east-127754922" target="_blank" rel="noopener noreferrer">the single-level three-bedroom townhouse</a>. </p>
<p>Merrett, a two-time premiership player in the 1950s, told the Herald Sun he would miss the neighbourhood.</p>
<p>The agency had been quoting $900,000 to $990,000, with six bidders taking the price well beyond.</p>
<p>CoreLogic records indicated it last sold in 2007 at $575,000.</p>
<p>Melbourne's top sale was in Williamstown.</p>
<p>The three bedroom house at <a id="x_mcntLPlnk621219" href="https://www.realestate.com.au/property-house-vic-williamstown-127753482" target="_blank" rel="noopener noreferrer">218 Osborne St, Williamstown</a> fetched $3.02 million.</p>
<p>Corinda, set in South Williamstown, had been listed with $2.7 million to $2.8 million price guidance.</p>
<p>The nation's cheapest auction was at <a id="x_mcntLPlnk890323" href="https://www.realestate.com.au/property-unit-vic-thornbury-127780190" target="_blank" rel="noopener noreferrer">8/54 Martin Street, Thornbury</a> for $335,000. The Melbourne sale fell within the price guidance range of $315,000 to $340,000 for the one bedroom 1970s apartment.</p>
<p>CoreLogic put its last sale price as $249,500 in 2002.</p>
<p>The Canberra clearance rate fell to just 59 percent, which was the nation's third strongest success rate with 88 homes listed.</p>
<p class="x_mcntfirst-para">A 1960s Griffith home on one of Canberra’s prestigious streets, constructed of stone, brickwork and Australian timbers, fetched its highest price.</p>
<p class="x_mcntfirst-para">The 26 Jansz Crescent offering fetched $1.641 million, with Domain noting it was announced on the market at $1.610 million.</p>
<div class="x_mcntin-content-ad">Held by the same family for 57 years, the four-bedroom, one-bathroom home on 1106 sq m had eight registered bidders.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">The official land value was $953,000.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">Adelaide also recorded a success rate of 59 percent from 93 homes listed.</div>
<div class="x_mcntin-content-ad"> </div>
<div class="x_mcntin-content-ad">
<div>The Brisbane market had a 40 per cent clearance rate from the 91 homes listed for auction. </div>
<div> </div>
<div>A Georgian-style home at Chelmer sold under the hammer, fetching $1,675,000 through Brad Robson of Place Real Estate.</div>
<div> </div>
<div>The five bedroom property at <a id="x_mcntLPlnk629838" href="https://www.realestate.com.au/property-house-qld-chelmer-127736178" target="_blank" rel="noopener noreferrer">2 Morley Street</a> sold to an upsizing local couple.</div>
<div> </div>
<div>
<a id="x_mcntLPlnk118395" href="https://www.realestate.com.au/property-house-qld-camp+hill-127791470" target="_blank" rel="noopener noreferrer">A newly built four bedroom Camp Hill home </a>was among Brisbane's top sales at $1.05 million.</div>
<div> </div>
<div>At Carindale a $1.35 million offer for <a id="x_mcntLPlnk562954" href="https://www.realestate.com.au/property-house-qld-carindale-127834386" target="_blank" rel="noopener noreferrer">a three-storey, four bedroom home</a> at 45 Nelson Place was not enough to secure a sale, with the auction ending on a $1.5 million vendor bid.</div>
<div>
<p>The home was the project of Steve Stamatiou, a builder at Mati Constructions, and his wife Andrea, with the Courier Mail reporting they built the home over seven months in the French provincial architecture style. </p>
<p>The 518 sqm building block had cost $535,000 in 2016.</p>
<p>It came with a four-metre-long ‘White Princess’ Granite breakfast bar, full suite of European appliances and a butler’s pantry so large that it almost doubles as a second kitchen, the marketing by Place agent Denis Najzar said.</p>
</div>
</div>
<div class="x_mcntin-content-ad">
<div>After the Easter slowdown, the national preliminary clearance rate rose along with higher volume of auctions with 1,813 homes taken to market returning a 65.3 per cent success rate.</div>
<div> </div>
<div>The higher activity followed the Easter period slowdown which saw only 670 auctions held across the capitals and a 64.8 per cent final auction clearance rate.</div>
<div> </div>
<div>Overall results by property type, saw 70 per cent of units selling at auction this week, which was higher than houses which returned a 63.4 per cent clearance rate.</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Chinese buyers secure top weekend auction offering 

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<p>While there’s been a marked fall in Chinese residential property buying across Sydney, the depth of the enrichened 1.4 billion Chinese population means there is always likely to be some demand coming our way.</p>
<p>China has 1,340 high net worth individuals and 568 billionaires. Their combined net worth is equivalent to Australia’s GDP.</p>
<div>The Chinese New Year festivities, currently being celebrated, triggers the biggest international travel period of the year for mainlanders.</div>
<div> </div>
<div>In 2017 Australia was the fifth most popular overseas destination for Chinese New Year trips, according to Ctrip, China’s online travel agency.</div>
<div> </div>
<div>Chinese residents who are considering buying real estate often use the holiday week to combine fun and a bit of research.</div>
<div> </div>
<div><span lang="EN-US"><span lang="EN-US">Jon Ellis, the CEO of the <span id="0.5791612715808651">Investorist website which sells off the plan properties to Chinese buyers, calls this occurrence "</span></span>propidays." </span></div>
<div><span lang="EN-US"> </span></div>
<div>Historical data from Realestate.com.au suggests Sydney's eight most popular searched suburbs have been Chatswood and Epping followed by Carlingford, Hornsby, Eastwood, Hurstville, Mosman and Rhodes. Locations with vibrant Asian communities clearly attract the most interest.</div>
<div> </div>
<div>Australia welcomed a record 1.3 million Chinese visitors last year, and many are not just tourists — but potentially students, immigrants and property investors.</div>
<div>  </div>
<div>The Juwai website ranks the top Australian cities for Chinese buyers as Melbourne, then Sydney, Brisbane, Adelaide, and the Gold Coast. </div>
<div> </div>
<div>Jawai's chief executive Carrie Laws expects Chinese buying in 2018 to be on par with the levels of 2017, unless something significant happens to change the Chinese or Australian investing environment.</div>
<div> </div>
<div>"One reason Chinese investors seek out property in Australia if because of our cost of living," she suggest adding it surprises many Australians as China was still regarded as being such a poor country.</div>
<div> </div>
<div>"China's eastern coastal region is just as developed as Australia and its 200 million people live in some of the most expensive cities in the world," she says.</div>
<div> </div>
<div>Buyers looks for their own use, plus their investment potential.</div>
<div> </div>
<div>Australia's reputation as a world class property investment location with particular appeal for Chinese buyers remains unquestioned, but several factors, here and in China, have worked against its popularity.</div>
<div> </div>
<div>These include NSW and federal governments which have increased taxes on foreign property investors.Some developers think the escalation of government changes imposed on foreign property investors risk killing the golden goose.Australia’s Foreign Investment Review Board (FIRB), the Australian Tax Office and immigration officials are now monitoring acquisitions closer than ever to ensure compliance.But divestment order numbers have faded recently.</div>
<div> </div>
<div>The most recent NSW divestment was $210,000, one of 14 forced sales of Australian residential properties in the past year.It took the total number of forced sales to 75 across Australia across many nationalities.A further 139 foreign investors have sold properties during the course of ATO investigations.</div>
<div> </div>
<div>This article was first published in the Saturday Daily Telegraph.</div>
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jchancellor-FAypfDUnLy

Chinese demand will always stay despite marked drop

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<p class="first-para">A local North Shore family, from China, have spent $13 million on the Wahroonga estate of Karen O’Hanlon, wife of tech company entrepreneur Dominic O’Hanlon.</p>
<p><span class="lead-wide"><span class="domain-article-caption"><a href="https://www.realestate.com.au/sold/property-house-nsw-wahroonga-107911231" target="_blank">The Wahroonga mansion</a> sale set an upper north shore record through <span class="photographer">Jane Colyer and William Zhang of Chadwick Real Estate.</span></span></span></p>
<p>O’Hanlon, who heads up the ASX-listed software licensing provider Rhipe, bought the Water Street trophy home in 2011.</p>
<p>It was bought for $6.9 million from the software entrepreneur Paul Phillips.</p>
<p>The six-bedroom, six-bathroom mansion sits on 4000 square metres with a tennis court with lights.</p>
<p>There's also a children’s playground, an indoor swimming pool, and poolside cabana with a pizza oven.</p>
<p>The sale tops Sydney’s $12 million upper north shore record set six months ago when a buyer from China with Foreign Investment Review Board approval, Shuxin Zhou, bought the Springfields estate in Warrawee.</p>
<p>It was signed off the day before the state government’s new laws took effect doubling the stamp duty surcharge for foreign buyers.</p>
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New upper North Shore record price paid by local Chinese family

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<p dir="ltr">EXPERT OBSERVATION</p>
<p dir="ltr">The continued appreciation of the yuan could put pressure on the Chinese Government to ease the capital outflow restrictions which have impacted investment in Australian commercial property.</p>
<p dir="ltr">The issue for China is that the yuan is up massively over the last 12 months and that has been driven by the new capital control regulations which have been very effective in turning around the outflow of capital.</p>
<p>However that appreciation could see Chinese goods becoming less competitive and that is not what the Chinese will want to see.</p>
<p>If that is the case then it seems clear that some tinkering with those new capital outflow regulations, and among them those pertaining to real estate transactions, will occur and that will help to both stabilise the yuan at a level that is acceptable to China, and of course benefit Australian commercial property.</p>
<p>According to a report from London based Pictet Wealth Management, China’s total capital outflow was estimated at US$166 billion in 2017, down 78% from US$761 billion in 2015 and 67% from US$500 billion in 2016 as a result of the new regulations.</p>
<p>China’s initial tightening of capital outflow rules in 2016 followed a fall of nearly 7% in the value of the yuan against the USD which had been the largest depreciation since 1994.</p>
<p>The foreign exchange turnaround, he said, had seen the yuan appreciate 10.4% against the USD over the 12 months to December.  </p>
<p>But more importantly if we look at the movement over the last two months from December when  1 USD bought 6.62 yuan and then last week when 1 USD bought 6.29 yuan we see an appreciation of 5.2% in just six weeks.</p>
<p>That is a huge appreciation of the yuan on top of the significant rise over the last 12 months, and, if it continues, then it must be troubling for at least some sectors of the Chinese manufacturing industry which of course is a hugely significant contributor to capital inflow.</p>
<p>The sheer weight of Chinese capital seeking offshore property investment remains very significant with Australia still the number two destination in the world behind the US for Chinese investors.</p>
<p dir="ltr">We need to keep in mind that while investment outflows from China have been curbed, Chinese investors are adjusting to the new rules and fine tuning their investment strategies.</p>
<p dir="ltr">To date in the new year we have seen little change in interest from Chinese investors, if anything, what may have restricted sales volumes, has been as much about the lack of quality stock in increasingly tightly held markets.</p>
<p dir="ltr">That has been particularly the case in the retail sector, while falling vacancy and incentive levels have been very encouraging for office market landlords.</p>
<p dir="ltr">A further factor driving continued Chinese investor interest in Australian property were regulations aimed at curbing Chinese domestic real estate activity in restricting developers’ ability to raise finance for their projects.</p>
<p dir="ltr">On the one hand we have the regulations restricting developers from seeking off-shore opportunities and on the other hand also being restricted in their activities at home.</p>
<p dir="ltr">It is a difficult time for property developers on the domestic front, who, under the centralised banking system, already face limited options for funding new projects.</p>
<p dir="ltr">It is not inconceivable then that the further restrictions on their ability to raise finance through debt and equity, may have them looking offshore where finance for their projects may prove easier to come by.</p>
<p dir="ltr"><em><strong>Mark Wizel</strong> is a Melbourne-based CBRE national director.</em></p>
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The factors driving continued Chinese investor interest in Australian property: Mark Wizel

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<p>One-third of Australian residential development site in 2017 were purchased by Chinese investors and developers, equating to AUD$2.02 billion of site sales, according to Knight Frank.</p>
<p>Their report, Chinese Developers in Australia – Market Insight 2018 found Chinese developers continued to dominate foreign investment in residential development sites across Australia.</p>
<p>"Many are now well-established in the local market," Knight Frank’s head of residential research, Australia Michelle Ciesielski said.</p>
<p>The share of sales to Chinese buyers has tripled since 2013, but decreased from the 38 per cent recorded in 2016.” (See Figure 1)</p>
<p><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/2018/2/14/FIGURE1.jpg" alt=""></p>
<p>“Sustained developer interest in the Australian market has come in spite of government efforts in both Australia and China to tighten credit conditions as they relate to residential investment and development.</p>
<p>“In Australia, the Australian Prudential Regulatory Authority (APRA) has encouraged local financial institutions to impose stricter controls, while in China the government has attempted to moderate capital outflow with China’s Central Bank imposing new rules for companies which make yuan-denominated loans to overseas entities.</p>
<p>“However, in mid-2017, this was relaxed somewhat – resulting in a boost to market confidence.” said Ms Ciesielski. </p>
<p>According to the report Victoria recorded the sale of 38.7 per cent of residential sites to Chinese buyers – the highest share of all states. </p>
<p>Ms Ciesielski said many developers consider that Melbourne offers better relative value when compared to Sydney. New South Wales and Queensland followed, with Chinese buyers comprising 35.6% and 7.4% of their state’s total volumes, respectively.</p>
<p><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/2018/2/14/FIGURE3.jpg" alt=""></p>
<p>Knight Frank’s Head of Asian Markets, Australia Dominic Ong said as Chinese developers gain experience in higher-density projects across the major cities, there has been diversification in many of their portfolios to include medium and lower-density sites.</p>
<p>“These lower-density projects have also become more popular with local developers – especially in NSW with the draft Medium Density Design Guide being released, identifying the ‘missing middle’ to encourage more low-rise, medium-density housing to be built.</p>
<p>“This type of project also tends to have less hurdles with the imposed tighter lending restrictions, and overall, lowers the delivery risk to the developer,” said Mr Ong.</p>
<p>The report found that residential development sites purchased by Chinese developers and investors in 2017 had an average site area of 21,785 square metres.</p>
<p>Of all Australian development sites purchased by Chinese developers and investors, 29 per cent were suited to low density (single dwellings or landed properties) – up from two per cent in 2013.</p>
<p> </p>
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One-third of Australian development site sales in 2017 to Chinese

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<p>Just one month ago, the investment bank Credit Suisse, advised the Sydney housing market looked set to be stronger for longer, as Chinese buyer demand defied a clampdown on capital outflows.</p>
<p>“There is little evidence that new capital controls by the Chinese authorities, announced in December 2016, have slowed demand for Aussie housing,” its analysts wrote.</p>
<p class="selectionShareable">“We think the tailwind of Chinese wealth creation will mean more, not less, foreign buying of Aussie housing.”</p>
<p>Now the investment bank advises they have detected a sudden withdrawal of Chinese investors from the Australian property market.</p>
<p>They forecast Sydney price growth to stall given Chinese buyers appear to have gone cold. </p>
<p class="selectionShareable">I guess we are all intriguingly learning how the Chinese phenomenon plays out - not just the analysts contradicting each other from the same investment bank.</p>
<p>The latest research by Credit Suisse's economics and equity teams spotted a tight correlation between Chinese capital flows and Sydney housing prices.</p>
<p>Movements typically impacted on local property demand around 12 months on from events occurring in China.</p>
<p>Credit Suisse advised over the past year, Chinese capital flows have fallen considerably, in part reflecting the impact of stricter capital controls in China.</p>
<p>"This fall foreshadows weakness in NSW housing demand in the year ahead," they suggested adding the Sydney housing market had already cooled over the past few months.</p>
<p>It noted revised auction clearance rates — accounting for the many late reported results — had now dipped below 60 per cent in Sydney.</p>
<p>"This is a significant development because recent RBA analysis suggests that a 60 per cent clearance rate is typically the break-even point for house price inflation," Credit Suisse noted.</p>
<p>"House prices tend to fall when the clearance rate is below 60 per cent."</p>
<p>Credit Suisse suggested Chinese buyers have previously driven up valuations in expensive Sydney suburbs and apartment blocks with this then having a spill-over effect for higher pricing in other suburbs and segments of the market.</p>
<p>"We believe that Chinese buyers spark the cycle, while local investors chase the momentum," Credit Suisse said.</p>
<p>Credit Suisse even suggested the Reserve Bank of Australia might be forced to cut rates again, as without a healthy housing market, our economy has few other growth drivers to rely on.</p>
<p>It acknowledged the central bank was in a difficult position because of lack of timely, accurate data about Chinese capital flows and their impact.</p>
<div id="story-description">
<p class="selectionShareable">But recent data on the Brisbane apartment market suggest it is facing an emerging challenge with one in five foreign buyers failing to settle on their off the plan purchases.</p>
<p class="selectionShareable">According to rival investment bank UBS, unlike Brisbane, Sydney's strong residential price growth over the past two to three years ago is ensuring a strong incentive for the foreign buyer to settle.</p>
</div>
<p class="selectionShareable">UBS say they will be watching to understand how foreign buyers react in Sydney over the months ahead.</p>
<p class="selectionShareable">It advised Brisbane resale prices are 10 per cent or more below purchase price and bank valuations are frequently below the off the plan purchase price especially on poor quality projects.</p>
<p class="selectionShareable">Sydney is not immune from poor quality projects or softening prices. </p>
<p class="selectionShareable">This story first appeared in the Daily Telegraph.</p>
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Credit Suisse casts doubt on continued Chinese property buying in Australia

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<p>The sudden withdrawal of Chinese investors from the property market may lead the Reserve Bank to cut interest rates, according to investment bank Credit Suisse.</p>
<p>Research conducted by Credit Suisse's economics and equity teams found Chinese capital flows are tightly correlated to Sydney housing prices, with movements typically impacting property demand around 12 months on.</p>
<p>"Over the past few months, the Sydney housing market has not only cooled down, but has arguably turned cold," Credit Suisse advised, without giving any indication when the mooted cut would come.</p>
<p>"Over the past year, Chinese capital flows have fallen considerably, in part reflecting the impact of stricter capital controls.</p>
<p>"This fall foreshadows weakness in NSW housing demand in the year ahead."</p>
<p>It noted revised auction clearance rates — accounting for the many late reported results — had now dipped below 60 per cent in Sydney, the ABC noted.</p>
<p>"This is a significant development because recent RBA analysis suggests that a 60 per cent clearance rate is typically the break-even point for house price inflation," Credit Suisse noted.</p>
<p>"In other words, house prices tend to fall when the clearance rate is below 60 per cent."</p>
<p>While it is difficult to pin-point the exact impact Chinese buyers have on price, Credit Suisse said its modelling found that Chinese capital flows and real interest rates predict roughly three-quarters of the variation in NSW property transfers since 2010.</p>
<p>Credit Suisse reported the relationship between mortgage availability and auction clearance rates had broken down.<br>"Mortgage availability has plummeted to levels historically consistent with a collapse in clearance rates to around 20 per cent — yet actual clearance rates have remained elevated at 60-80per cent," Credit Suisse said.</p>
<p>Anecdotal evidence suggest there is significantly lower online interest for Australian property coming from China.</p>
<p>"The failure of local variables to explain the housing cycle suggests that there must be a strong foreign component to demand," Credit Suisse concluded given Chinese buyers have previously driven up valuations in certain areas such as expensive suburbs and apartment blocks.</p>
<p>"But this has positive spill-over effects for pricing in other segments of the market. We believe that Chinese buyers spark the cycle, while local investors chase the momentum," Credit Suisse said.</p>
<p>Credit Suisse said the Reserve Bank was in a difficult position because of lack of timely, accurate data about Chinese capital flows.</p>
<p>But the drying up of offshore investment was "a very big risk" to the economy.</p>
<p>"We understand that policy needs to be set on what is known, rather than what is unknown, and Chinese capital flows are a very big unknown because of the absence of high-quality and timely data," it said.</p>
<p>"But the issue for us is that the recent shift down in Chinese capital flows is having a visible, negative impact on house prices and consumer spending now."</p>
<p>Credit Suisse argued if its model was anything to go by, it is hard to see a meaningful recovery any time soon.</p>
<p>"We believe that the RBA will need to cut rates further to deal with the housing market slowdown in train," it noted.</p>
<p>"Without a healthy housing market, the economy does not have other growth drivers to lean on."</p>
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Chinese buying in Sydney has gone cold which could prompt RBA to cut: Credit Suisse

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<p>Foreign buyers, mostly Chinese, are buying a quarter of new housing supply in NSW, with Credit Suisse forecasting a "stronger-for-longer" scenario for the housing sector.</p>
<p>After analysing foreign buyer receipts, the trend is also strong in Victoria, with foreign buyers accounting for the purchase of 17 per cent of new housing. In Queensland, it is 8 per cent.</p>
<p>"Almost 90 per cent of foreign demand is from China and there is little evidence that new capital controls by the Chinese authorities, announced in December 2016, have slowed demand for Aussie housing," the analysts, Hasan Tevfik and Peter Liu advised.</p>
<div class="cq-article-content-paras section">
<p>"We think the tailwind of Chinese wealth creation will mean more, not less, foreign buying of Aussie housing.</p>
</div>
<div class="cq-article-content-paras section">
<p>"Chinese demand suggests we ought to remain skeptical of a collapse," they wrote.</p>
<p>"Residential exposed companies should benefit including the developers, building material companies and banks."</p>
<p>Using Freedom of Information requests the Credit Suisse report collates tax receipts collected by the state revenue offices in the three east coast states in 2016-17 financial year.</p>
</div>
<div class="cq-article-content-paras section">
<p>It found foreign buyers bought $5.9 billion in residential property in NSW, along with $3.4 billion in Victoria and $700 million in Queensland.</p>
<p>While the housing market, is worth $5.6 trillion in the three east coast states, the report notes, it represents a large proportion of the value of new housing supply.</p>
<p>From July 1 this year, NSW doubled the stamp duty on foreign buyers to 8 percent and increased the land tax surcharge from 0.75 per cent to 2 per cent.</p>
<p>Victoria and Queensland impose taxes on foreign buyers of residential property of 7 percent and 3 percent, respectively.</p>
<p>On the question of whether the recent increases in tax will be enough to reconsider and cause house prices in Sydney to decline, Credit Suisse advised international experience suggests not," the Credit Suisse analysts wrote.</p>
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Chinese new housing purchasing to ensure Sydney and Melbourne markets remaining stronger for longer

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<div class="cq-article-content-paras section">
<p>Apartment settlements to Chinese off-the-plan buyers are holding up in the Melbourne CBD, according to the construction financier MaxCap.</p>
<p>The <span>off-the-plan</span> sales in the north-western Elizabeth Street precinct showed little sign of settlement difficulties, said MaxCap chief investment officer Brae Sokolski.</p>
<p>He cited figures for four projects which were almost fully pre-sold.</p>
<p>He noted 65 per cent of apartments settled within the first two weeks of settlements, with the remainder of stock settling over four to six weeks with minimal evidence of default.</p>
<p>At least half of the buyers were foreigners who required Foreign Investment Review Board approval to buy.</p>
</div>
<div class="cq-article-content-paras section">
<p>"In the most trying environment for settlements, they are still proving incredibly resilient," Sokolski told Fairfax Media.</p>
<p>"The buyers from offshore are finding a way to ensure that they settle and they have investment in Australian real estate."</p>
</div>
<div class="related-quotes section">He suggested these buyers were the ones with notionally the highest possible risk.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"They bought when the market was very different in terms of their ability to access equity from China or debt from Australia.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"The fact that they are settling when they were caught unawares augers very well for the future of the industry and the settlements moving forward."</div>
<div class="cq-article-content-paras section">
<p>The four projects were Golden Age's Victoria One (160 stage-one units out of a planned total 643 apartments), <a href="https://www.hengyi.com.au/category/news/light-house/" target="_blank">Hengyi's Light House</a> (627 apartments), ICD Property's EQ Tower (633 apartments) and Mammoth Empire's Empire Melbourne (487 apartments).</p>
<p>At Light House, 98 per cent of all apartments had settled successfully within 60 days of calling for settlements, Sokolski said. They took place in July this year.</p>
</div>
<div class="cq-article-content-media section">Sokolski said a random sample review of title searches showed that about 58 per cent of the apartments purchased across the four projects were funded by cash, while 33 per cent was through major Australian banks or lenders, and a further 9 per cent through alternate or overseas lenders.</div>
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Light House signals Chinese buyers showing few signs of Melbourne apartment defaults

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<p>Claims that local developers have left the Chinese market due to a lack of appetite is untrue, according to the founder of off-the-plan property marketplace Investorist.</p>
<p>"The idea that the market in China for Australian projects is over is not just an exaggeration, it's just plain wrong," Jon Ellis, managing director of Investorist, told The Australian Financial Review. </p>
<p>His website connects developers with selling agents and currently lists about 215 mainly East Coast projects.</p>
<p>He contradicted an earlier claim by Scott Kirchner, a Shanghai-based director of real estate group Beller, in the AFR that Australian developers were not up in China pushing projects and that "Chinese agents have no appetite for Australian property".</p>
<p>An earlier report by Investorist also said that Australia remained the first choice for Chinese property investors, who are undeterred by regulatory changes or global events when it comes to buying property overseas and the trend is likely to continue in 2017.</p>
<p>While Ellis did say that demand from China was down about 40 per cent on a year ago, developers were still going to China to promote their developments and achieving sales.</p>
<p>"We recently achieved 24 sales for a Melbourne Docklands developer. If you have a decent product and are willing to persevere and have a sustained presence in China you will continue to make sales and heaps of them." </p>
<p>He is taking six Australian developers, including Mirvac and real estate agents McGrath, to Investorist's next China Connection roadshow, which starts on Sunday, having taken five to the last event.</p>
<p>He said the roadshow in the cities of Guangzhou, Shenzhen and Shanghai are platforms for developers to pitch projects to Chinese estate agents.</p>
<p>"We do these roadshows based on demand from Chinese estate agents," said Ellis. "There is still the same level of demand. We have sold out each of our events within three weeks."</p>
<p>At educational seminars held in China, Investorist hosted representatives from 160 companies selling international property, and about 40 per cent expressed strong interest in continuing to buy Australian properties.</p>
<p>"A similar story emerges from our regular China Connection events; approximately half of the Chinese agents attending are there to meet Australian developers. The Chinese agents are attending because Australian property is what their clients are asking for," he said.</p>
<p>While demand from China was down, he said some of this shortfall had been taken up by increasing demand from local selling agents and channels.</p>
<p>"Across the board demand for off-the-plan properties is down about 25 to 30 per cent," he said. </p>
<p>Ellis said this was due to changes to stamp duty rules that have removed concessions to investors buying off the plan in Victoria and tightening of lending by banks.</p>
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