<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

Mining Areas

<html><body>
<div>Total construction work done declined by 0.7 percent in seasonally adjusted terms to $46.4 billion over the first quarter of the calendar year to be 7.2 percent lower over the year to March 2017. </div>
<div> </div>
<div>After weaker trade and retail figures, all of the signs appear to be pointing to a weak result for GDP growth in the first quarter. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/05/26/A1.jpg" alt=""></div>
<p> </p>
<div>First, here's the good news: having peaked all the way back in 2012, engineering construction activity is now rising again. </div>
<div> </div>
<div>There were still moderate ongoing declines in Western Australia and the Northern Territory as resources construction activity continues to wind down, but the rates of these declines is now tapering off.</div>
<div> </div>
<div>And indeed, at the national level engineering construction activity is rising again, partly driven by infrastructure projects in the three most populous states. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/05/26/A2.jpg" alt=""></div>
<p> </p>
<div><strong><span style="text-decoration: underline;">Dodgy weather...or peak resi?</span></strong></div>
<div> </div>
<div>Residential building work done dropped by 4.7 per cent in the quarter, which was the worst quarterly result for the sector since the introduction of the Goods and Sales Tax (GST) more than a decade and a half ago. </div>
<div> </div>
<div>Building activity slowed across new house building, apartments, and major renovations, suggesting that at least part of the reason for the decline was Cyclone Debbie towards the end of the quarter, while Sydney also had some shocking weather during the period. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A3.jpg" target="_blank">Click to enlarge</a></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/2017/05/26/A3.jpg" alt=""></p>
<p> </p>
<div>And looking at the building work done figures by state confirms as much, with a very sharp 10 per cent quarterly drop in Queensland, and a somewhat lesser 4 per cent decline in New South Wales. </div>
<div> </div>
<div>In Victoria building activity powered to a new record high in chain volume measures terms, with the industry going like the clappers in Melbourne and operating at close to full capacity. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/05/26/A4.jpg" alt=""></div>
<p> </p>
<div>New detached house construction has been broadly flat since the end of 2014, with the growth in residential construction since that time driven by record activity levels in the apartments sector.</div>
<div> </div>
<div>Here too there was a sharp weather-related 22 per cent fall in Queensland, plus a relatively small decline in New South Wales.<br><br>But there was also a slowdown in evidence in Western Australia, South Australia, the Northern Territory, and Canberra. </div>
<div> </div>
<div>On this evidence, then, it's possible that the peak for apartment construction activity might have passed, although there is of course still a huge pipeline of work to be completed.  <br><br>
</div>
<div>Click to enlarge</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/2017/05/26/A5.jpg" alt=""></div>
<p><br><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div> </div>
<div>Firstly, growth in the economy in the first quarter is going to be weak, and perhaps very weak. </div>
<div> </div>
<div>On the positive side there is light at the end of the tunnel for the resources states, as engineering construction activity finally looks to be bottoming out, after years of contraction. </div>
<div> </div>
<div>Strip out the impact of Cyclone Debbie and heavy rain in Sydney and the apparently sharp drop in residential construction in the first quarter of the year may prove to be less than dramatic. </div>
<div> </div>
<div>However, it's hard to escape the conclusion that building activity in the residential sector is about to fade away as the record pipeline of apartments is delivered to the market. </div>
<div> </div>
<div>It might reasonably be expected that dwelling starts fall by about a quarter over the next couple of years. </div>
<div> </div>
<div>Given the huge level of employment in the construction industry, this could prove to be a very significant drag on the economy going forward. </div>
<p> </p>
<p><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<p><em> </em></p>
<div> </div>
</body></html>

pwargent-M4siyDbqQY

Mining cliff over, what next for the residential market? Pete Wargent

<html><body>
<p>Bowen Basin, after several years of property price reductions, appear to have finally turned the corner.</p>
<p>Just two years ago Bowen Basin landlords were struggling with millions of dollars' worth of unpaid rates amid the mining downturn, forcing local councils to consider repossessing homes.</p>
<p>The Central Highlands Regional Council based at Emerald, west of Rockhampton, was looking to repossess more than a dozen homes to pay down debts.</p>
<p>But this year CoreLogic found that Bowen Basin dwelling values have grown the most of any mainland district - some 14% over the past 12 months.</p>
<p>This ranked the best property price growth of any SA3 mainland region.</p>
<p>Sales this year kicked off when $95,000 was paid for 23 Acacia Street, Blackwater.</p>
<p>It had previously sold for $90,000 in 2009, suggesting prices above their last sale price were possible.</p>
<p><img src="https://www.urban.com.au/images/2018/12/14/Bowen%201.JPG" alt=""></p>
<p>A clear example of Bowen Basin's changing fortune is 7 Luck Place, Emerald (pictured above).</p>
<p>The three bedroom one bathroom home sold earlier this month for $180,000.</p>
<p>It was a $70,000 increase on it's December 2017 mortgagee sale price of $110,000.</p>
<p>Set on a 751 sqm block, the house has yet to be reach it's 2005 sale price of $215,000.</p>
<p><img src="https://www.urban.com.au/images/2018/12/14/Bowen%202.JPG" alt=""></p>
<p>Also indicative of the dwelling price growth in Bowen Basin is 1/28 Saville Street, Emerald (pictured above).</p>
<p>The three bedroom two bathroom apartment saw a price increase of $77,000 from it's 2016 mortgagee sale when it sold for $190,000.</p>
<p>Sold most recently for $267,000, the property is still short of it's 2008 sale of <span>$342,500.</span></p>
<p><img src="https://www.urban.com.au/images/2018/12/13/Top%2050%20growers.JPG" alt=""></p>
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jchancellor-FAypfDUnLy

Bowen Basin property prices finally recovering from mining downturn

<html><body>
<p>EXPERT OBSERVATION</p>
<p>The prelude to the mining boom in the years leading up to 2012 saw several Australian regions record spectacular capital gains.</p>
<p>Fueled by a surge in investment, bigger pay packets and generous corporate subsidies for housing costs; housing was scarce and demand from cashed-up workers and investors was strong. Then came the downside of the mining-related property boom in 2012/13 which was even more spectacular than the upswing.</p>
<p>However, recent analysis shows that values have now steadied and rents are rising, providing some of the highest rental yields across the country.</p>
<p>The Pilbara region of Western Australia was booming on the back of iron ore and the Bowen Basin of Queensland was thriving thanks to coal prices.</p>
<p>The Karratha council area (called Roebourne until 2014), which is a good benchmark for the Pilbara mining region, saw housing values rocket 87% higher over the five years preceding the market peak in 2012, while the Isaac Regional Council, which covers a broad swathe of Queensland’s Bowen Basin, saw house values climb 72% higher over the five years preceding the 2012 peak.</p>
<p>Since conditions peaked in line with commodity prices and a wind down in infrastructure spending, dwelling values in these regions have moved through a long and deep downturn. Some suburbs have seen the median value of a house fall by more than 80% (WA’s Newman is down 84.2% since peaking and Queensland’s Dysart is down 83.0% since peaking).</p>
<p>Although the recent trends can show some volatility due to low transaction numbers, many of the these mining regions have started to see housing conditions bottom out and commence what is likely to be a drawn out period of recovery.</p>
<p>Most regions are showing housing values that are well below levels recorded 10 years ago, which may be attractive to home buyers and investors. Rental vacancies have tightened substantially which is driving up rents, in fact some of the Bowen Basin towns have seen asking rents rise by more than 20% over the past 12 months.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/10/12/mining%20town%201.jpg" target="_blank">Click here to enlarge:</a></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/2018/10/12/mining%20town%201.jpg" alt=""></p>
<p>Higher rents against low housing values is driving rental yields higher, with most of the towns likely to be providing a positive cash flow from the outset. Gross yields are typically above 6% in these regions.</p>
<p>Of course, a note of caution always needs to accompany anyone considering a property purchase in these regions. The economies of a mining region are inherently shallow; asset values are highly dependent on the price of the commodity that lies under the dirt and the willingness of the private sector to invest capital in extracting it.</p>
<p>Government policies can disrupt conditions, as can company policies around worker accommodation, fluctuations in the Australian dollar and appetite for trade with key trading partners.</p>
<p>Investing in these areas is high risk and investors should expect a high rental return to compensate for that risk.</p>
<p>The RBA, based on spot prices, reported bulk commodity prices are 16.5% higher over the year in Australian dollar terms. If coal and iron ore prices remain elevated against a lower Australian dollar, we could see mining infrastructure investment gather some pace.</p>
<p>Investment in minerals exploration has been consistently rising since mid-2016, rising to the highest level since December 2013, which bodes well for further infrastructure investment across the mining sector. If that does eventuate, there should be positive flow on effects for these mining regions.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/10/12/mining%20town%202.jpg" target="_blank">Click here to enlarge:</a></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/2018/10/12/mining%20town%202.jpg" alt=""></p>
<p><em><strong>Tim Lawless</strong> is CoreLogic's head of research.</em></p>
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tlawless-5VLUrbAk9s

Mining town rents are delivering some of country's highest rental yields: CoreLogic's Tim Lawless

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<p>New research has found that property prices halved in many mining regions over the past decade.</p>
<p>Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos is currently reviewing research he undertook for a book that was published in 2008.</p>
<p>As part of the new research, however, Koulizos used CoreLogic data to calculate the best and worst performing areas over the past 10 years and found a clear front – runner for bottom of the pile – mining locations.</p>
<p><em><a href="https://www.propertyobserver.com.au/images/2018/9/11/mining%20property.jpg" target="_blank">Click here</a> to enlarge:</em></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/2018/9/11/mining%20property.jpg" alt=""></p>
<p><em>Souce: PIPA</em></p>
<p>“What this data shows us is that if you had bought property in one of these towns, not only did your property not increase in value over this 10-year period, but it is actually worth less,” Koulizos said.</p>
<p>“West Australia – which benefited the most from the mining boom – has also suffered the most from the mining bust.</p>
<p>“There is a very long list of underperforming mining towns in WA, but the worst is South Hedland, a suburb in Port Hedland, where house prices fell a whopping 74.8%.</p>
<p>“Newman came in a close second to South Hedland, where the median house price was $501,000 in 2008 and now it is only $147,000.”</p>
<p>Queensland mining towns and suburbs within those towns have also suffered, according to the data.</p>
<p>Gladstone was promoted by many property spruikers and it’s clear they have seriously come unstuck, Koulizos said.</p>
<p>“South Gladstone house prices fell by 31.7% and West Gladstone house prices fell by 47.6% over that time period,” he said.</p>
<p>“However, these two suburbs are not the worst performers. Property prices in the mining town of Dysart fell a whopping 77.4%, while at the same time Brisbane house prices increased by 24%.”</p>
<p>House prices in the mining town of Roxby Downs in South Australia fell by 36%, according to the data, plus sales have fallen from 140 in 2008 to just 51 in 2018.</p>
<p>“It’s important to understand that buying property outside of capital cities still makes financial sense. In fact, there are many regional and country areas that are deserving of your investment dollars,” Koulizos said.</p>
<p>“The moral of the story is that successful property investment is about long-term economic fundamentals, not supposed short-term financial gains.</p>
<p>“And that usually means investing in locations with diverse, multi-faceted economies, not areas that financially ebb and flow depending on the strength – or weakness – of a single industry.”</p>
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j.ballantyne1990-6AQqhLzZaK

Mining property prices have dramatically dropped over past decade: PIPA

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<p>Non-performing housing loans for lenders have edged up over recent years, though they are still low as a share of all housing loans, says the RBA.</p>
<p>The central bank’s Assistant Governor Christopher Kent made these remarks during a speech at Moody's Analytics Australia Conference 2017.</p>
<p>However, at around ¾ of one per cent as a share of all housing loans, non-performing loans remain low and below the levels reached following the global financial crisis, he said.</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig1.png" alt=""></p>
<p>The RBA official said that the Securitisation Dataset helps the central bank to assess how loans are performing across different parts of the country by examining arrears rates. </p>
<p>Like non-performing loans, the arrears rates have increased a little but remain low, he observed.</p>
<p>The rise has been more in regions experiencing weak economic conditions over recent years, in particular, Western Australia, South Australia and Queensland since late 2015.</p>
<p class="p1">Earlier this year, the central bank noted that conditions had generally improved for businesses in the resource-related sector.</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig2.png" alt=""></p>
<p>Using the Securitisation Dataset, the bank also found other relationships between arrears and other factors. </p>
<p>A key factor contributing to a borrower entering into arrears is a reduction in income, most obviously via a period of unemployment. </p>
<p>“We find that there is a positive relationship between arrears rates and the unemployment rate across regions (Graph 9).</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig3.png" alt=""></p>
<p>“However, the relationship is not especially strong, which suggests that other factors are at play.” </p>
<p>For example, arrears rates are higher in mining-exposed regions, which have generally experienced a sharp fall in demand in the wake of the end of the mining investment boom. This was indicated by the “pronounced fall in the demand for housing” in those parts of the country as indicated by a decline in housing prices (Graph 10).</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig4.png" alt=""></p>
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