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GUEST OBSERVER 
Australian dwelling price growth has moderated over October. The latest CoreLogic RP Data figures show that dwelling prices rose by a small 0.2% over the month.  House prices were up by 0.1% and units rose by 0.4%.  Cooling house price growth fits in with other indicators of the housing market which show that the pace of activity is moderating.
A sizeable fall in dwelling prices in Perth over October was offset by rises across the other capital cities. Perth property prices are reflecting the combination of rising supply and vacancy rates at the same time as economic growth is slowing and population growth rate is falling.  
Dwelling price growth looks to be cooling in Sydney while property price growth has remained buoyant in Melbourne despite plenty of additions to the stock of housing. For Melbourne, it’s all been about the lift in house prices as opposed to unit prices.  House prices are running at 15.1%pa in Melbourne compared with 5.5% for apartments. The divergence is unusual and reflects the big lift in high‑rise construction over the past few years which has seen the available stock of apartments lift considerably against the stock of houses.  This trend looks likely to continue given the pipeline of high‑rise construction to come.
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There is nothing in today’s dwelling price data that looks surprising. Recent moves by the ‘big banks’ to lift mortgage rates were always going to have a cooling influence on the housing market. And they have come at a time when vacancy rates and rental yields are both falling and housing supply is lifting. The combination of the aforementioned means that dwelling price growth was always going to slow. 
The question is really a matter of how much price growth will slow and the short answer is that we simply don’t know.  In our view, running models to project dwelling price growth is too fanciful because there are too many moving parts that impact on dwelling prices. 
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One of the more accurate leading indicators of dwelling prices is auction clearance rates. These have been on a downward trend since record high levels mid‑year.  So we expect to see some further moderation in dwelling prices over coming months, particularly given the small lift in mortgage rates which will ease the pace of credit growth, especially to investors.  
One thing which could potentially reignite the housing market over the short run is a near term RBA interest rate cut, possibly as early as tomorrow. Market pricing is putting the odds of a Melbourne Cup day rate cut at around 40% and that looks about right to us.  We have the RBA on hold at 2.0% tomorrow. 
 
We don’t think that policymakers will be too perturbed by the easing in house price growth.  Indeed, they will most likely welcome it.  As recently as two weeks ago the RBA aired concerns around parts of the housing market in its semi‑annual Financial Stability Review.  Last week’s private sector credit data showed a marked lift in business credit growth and an easing in housing credit growth which is exactly what policymakers have been looking for – a lift in business credit growth is a precursor to capital investment.  So it looks like the different parts of the credit space are moving in the directions that policymaker’s desire. 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
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Property prices cool over October: Gareth Aird

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REA Group has announced its desire to fully acquire the iProperty Group in a deal that values iProperty at around $750 million.
The remaining 77% stake will cost about $575 million given REA has built up a stake of 22% in the south-east Asia online property portal.
"iProperty's board, management and staff have done a tremendous job of building iProperty from an emerging start-up, to occupying leadership positions in key markets," Real Estate Australia chief executive Tracey Fellows said today.
"This acquisition will bring iProperty and REA's existing portfolio of digital real estate advertising business and enable the business to take the next step in its evolution," Tracey Fellows said.
iProperty operates real estate websites in Singapore, Malaysia, Hong Kong, Macau, Indonesia, Thailand and the Philippines, though Tracey Fellows noted the transition from offline real estate advertising to online was at an earlier stage than in Australia "but is accelerating and represents an enormous monetisation opportunity."
"South East Asia is underpinned by highly attractive macroeconomic factors with strong growth prevalent across the region.
"The real estate market is expected to continue to grow driven by expanding populations and increasing GDP per capita, with the acceleration from offline to online advertising presenting an enormous opportunity for iProperty," she said.
Under the proposed transaction, iProperty shareholders will receive cash consideration of $4.00 per share.
As an alternative, iProperty shareholders will also be able to elect mixed consideration comprising of $1.20 in cash and 0.7 shares in a newly formed, unlisted public company, which will own an indirect interest in iProperty.
REA will fund the acquisition primarily from new debt facilities totaling $480 million, with the remainder from existing cash reserves.
REA’s leverage will be approximately 1.5x net debt / EBITDA on a pro forma FY15 basis but is expected to be lower by the time the transaction completes.
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REA seeks full iProperty portal ownership with $4 per share bid

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<div class="column">GUEST OBSERVER</div>
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<div class="column">The RBA has been reluctant to consider cutting its cash rate further. </div>
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<div class="column">It has made this fairly clear in recent public commentary. Business conditions are improving, employment is picking up, the unemployment rate has stabilised, and GDP growth seems likely to have lifted in Q3, after a weak Q2 print. The lower AUD is providing support for the rebalancing act. The RBA is also concerned about exuberance in the property market.</div>
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 However, three key things have happened in the past month that mean the RBA may, nonetheless, be forced to cut. First, in response to higher regulatory capital requirements, Australia’s four major banks lifted their mortgage rates by an average of 17.5bp. This, alone, was unlikely to see the RBA consider cutting its cash rate, given concerns about exuberance in the housing market, but it has led to tighter local financial conditions, which may not be desirable at this point in the cycle. Second, the underlying inflation measures surprised to the downside, with the q-o-q rates falling to 0.3% and the y-o-y rate at 2.2% (market had 2.4%). The RBA was forecasting underlying inflation to lift to 2.5% y-o-y by Q4, which now seems unlikely. Third, the US numbers have been weaker recently, which has seen market pricing suggest that the Fed may not lift its policy rate this year, which is a possible upside risk for the AUD.
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 Together, these factors strengthen the case for the RBA to cut. The most powerful argument is that inflation is lower than had been expected. This tells us that there is more spare capacity in the economy than previously thought. Although the recent lift in the activity indicators should mean growth lifts and generates some inflation, the bigger risk is undershooting the inflation target, not overshooting. Although we remain optimistic about the rebalancing of growth and expect growth to pick up next year, we think the path of least regret is for the RBA to cut further to ensure than inflation remains on target. 
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Inflation surprised to the downside 
The Q3 inflation print was surprisingly weak. Both of the RBA’s preferred underlying measures – the trimmed mean and weighted median – were 0.3% q-o-q, against a market expectation of 0.5% q-o-q (Chart 1). The y-o-y rate of underlying inflation fell to 2.2% and underlying inflation has been below the target band in annualised terms over the past six months (Chart 2). 
Weakness in inflation was fairly broad-based across the components. Although the lower AUD should start to lift imported inflation soon, there were few signs of this effect in the Q3 numbers (Chart 3). Tradables inflation rose by only 0.3% q-o-q and was still running at a negative rate over the year of -0.3%. Domestically produced (non-tradables) inflation was also steady, running at a below-average pace of 2.6% y-o-y. Headline CPI inflation has now been below the target band for four quarters on a y-o-y basis (Chart 4). 
The RBA’s last set of forecasts had underlying inflation lifting to 2.5% by Q4 2015, which now seems unlikely. The central bank is likely to revise down its inflation forecasts in next week’s official statement. 
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Growth is lifting but spare capacity remains 
At the same time that inflation has surprised to the downside, there are on-going signs that growth is continuing to rebalance towards the non-mining sectors. This has been supported by the ongoing effect of low interest rates and the lower AUD. This rebalancing of growth is creating jobs and lifting broader business conditions (Chart 5). Employment growth is running at 2.0% y-o-y, up from 0.5% a year ago and the NAB survey shows that business conditions are improving, led by the services sectors. The lift in jobs growth has been sufficient to get the unemployment rate to stabilise between 6.0-6.4% over the past 16 months (Chart 6). 
However, as yet, the pick-up in activity has not been sufficient to get the unemployment rate to fall. The spare capacity that remains in the labour market has kept wages pressures contained, which helps to explain why non-tradables inflation is yet to pick up. Although the RBA is no doubt pleased that the unemployment rate has stabilised, it needs to fall to start generating upward pressure on inflation. Although the timely indicators of the labour market have been lifting recently, the RBA’s last set of forecasts had the unemployment rate broadly steady over the forecast horizon and we doubt there is enough momentum as yet to see the RBA revise its unemployment rate forecast to a falling profile. 
Mortgage rates have been lifted by the major banks 
So inflation is lower than expected, suggesting that there is more spare capacity in the economy than previously anticipated and, although growth is improving, it has not been sufficient to push the unemployment lower and, thus, absorb the spare capacity. 
This month has also seen local financial conditions tighten. This occurred because Australia’s four major banks lifted their mortgage rates in response to higher regulatory capital requirements. The simple average of the increase in mortgage rates was 17.5bp. 
We see the RBA as unlikely to have been surprised by this move. After all, the authorities have been seeking to tighten prudential settings to slow activity in the housing market and holding more capital against the mortgage book has become a part of this story. In tandem, the government has been running its Financial System Inquiry, which has sought to make the banks ‘unquestionably strong’ by forcing them to hold more capital. 
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To some degree, the RBA may also be quite content to see slightly tighter conditions in the new housing lending market, given the central bank’s concerns about exuberance in the housing market. However, it is worth keeping in mind that the lift in rates feeds through to the whole mortgage book (including existing loans) because about 90% of Australia’s mortgages are at variable rates. It is not clear that the RBA necessarily wants broadly tighter financial conditions at this point in the cycle. 
Adding the downside surprise to underlying inflation of around 20bp to the tightening in financial conditions delivered by the major banks (17.5bp on the mortgage book) means that real interest rates have been tightened by around 30bp (keeping in mind that mortgage lending is around two-thirds of the total). 
RBA tactics 
One option is for the RBA to do nothing. The central bank would thereby accept that inflation is as bit lower than it had expected, revise down the inflation forecast profile, and acknowledge that mortgage rates are a bit higher, but business lending rates are still low. The change in bank rates may actually have got the RBA closer to a more ideal policy setting (slightly tighter housing lending conditions, while business lending rates remain unchanged). 
However, the risk with this strategy is that the Q3 inflation numbers provide a warning that demand is not yet strong enough to lift inflation back to target. If the low Q3 underlying inflation print was followed by another weak print in Q4 (in February 2016), then underlying inflation could fall below the bottom of the target band in y-o-y terms. By then, cutting rates in response would risk getting behind the curve. 
On the flip side, there is little to stand in the way of cutting the cash rate further. The risk of undershooting the inflation target surely significantly outweighs the risks of overshooting at this point. Although the labour market is improving, the unemployment rate is not yet falling. Concerns about the housing market would remain, but the net effect of a 25bp cut would be largely offset by the recent lift in mortgage rates by the major banks, leaving financial conditions similar where they were a month ago. 
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<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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A cut is likely, but it’s a close call: HSBC's Paul Bloxham 

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The weekend was a significant one for the Litchfield family of Hazeldean, 150 years since James Litchfield established Hazeldean on the Monaro.
Now into the sixth generation of Litchfields at Hazeldean, this year's 150th Anniversary Hazeldean Ram Sale was held on Saturday October 31. 
In 1865 James Litchfield founded the Hazeldean Merino Stud on Rambouillet bloodlines. The Hazeldean Angus stud was then added into the mix in 1952.
<a href="https://www.hazeldean.com.au/hazeldean-150.php" target="_blank">Jim Litchfield</a> said in a specially produced video that he was "very proud" of his families long history and "amazed" they are still running the same flock.
Earlier this year The Land reported the reason for the longevity of the family business was a mixture of innovation, while simultaneously identifying and avoiding the fads and trends that come along at regular intervals; hard work, and remaining hands-on in the operation of the business.
He noted also that having a close family over several generations that was committed to seeing the business maintain it's scale and viability was integral as well.
Taking up the role of stud sheep overseer, Bea Litchfield returned home in 2015 to Hazeldean after four years studying B. Ag. Sci at UNE and Sydney University. She has spent time in Canada and worked on RA Brown Ranch in Texas. 
Libby Litchfield is responsible for cattle registrations and data submission.
He said the employees of Hazeldean had also had a major impact. 
"We are enjoying a very good year on the Monaro," he added.
Hazeldean has three properties in New South Wales, two in the Monaro region of south eastern NSW near the town of Cooma Hazeldean and Myalla and the other in the Riverina district near the town of Hay, called Rosevale.
Cooma is the headquarters of the business and holds the main breeding unit for Hazeldean Angus and Hazeldean Merinos.
The Riverina property, Rosevale, also contains a breeding herd of Hazeldean Angus and a branch of the Hazeldean Merino stud flock.
Rosevale is also the breeding base for Hazeldean Senegus.
 
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Litchfield's 150th Hazeldean celebrations

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A McCrae beach box fetched a local record of $239,000 at weekend auction.
It was bought by a racehorse owner who was track side at Derby Day.
The 20 square metre <a href="https://www.realestateview.com.au/Real-Estate/boatshed-28-rosebud-foreshore-mccrae/Property-Details-buy-residential-9584706" target="_blank">bathing box 28 on the McCrae beach foreshore</a> sold at about $40,000 over reserve. 
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<div><img src="https://resources2.news.com.au/images/2015/10/31/1227589/252002-c957b2d0-7f7c-11e5-a5c8-de3ffc01720c.jpg" alt="A Melbourne racing identity snapped up the sought after property." width="650" height="366"></div>
Selling agent Craig Bennie of Ray White Rosebud said four bidders competed for the offering which was last offered around four decades ago.
The agent said the last beach box he had sold on McCrae beach fetched $75,000 five years ago. Others had been listed at $100,000 plus last summer.
Box 28 was among the 600 offerings scheduled to go under the hammer over the weekend, making it the biggest pre-Melbourne Cup weekend ever, according to the REIV.
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McCrae beach box fetches $239,000

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Hunter Valley tourism entreprenuer Matt Cowley has sold his private Polkobin vineyard estate, Hillside for $4 million. 
<a href="https://jurds.com.au/listings/rural_sale-173891-pokolbin/" target="_blank">The pavilion style home overlooking a lake at the 46-hectare property</a> was recently bought by Victor Virgona and his wife Maree after being listed through Alan Jurd of Jurd's Real Estate.
It fetched the same price Matt paid for in 2010 when he bought the property from Francis Johnson and Patricia Hume, the HR entreprenuer pair.
Selling agent Alan Jurd acknowledged the marketplace for pricey lifestyle property in the Hunter Valley had been challenging ever since the global financial crisis in 2008, but was showing early signs of recovery. It also sold in 2005 at $4 million.
It's the highest weekender sale since nearby Verona sold earlier this year at around $3.8 million. 
The prior owners of the trophy Hillside estate included former Time magazine chief, late Ed Barnum and his wife Rena. He was distantly related to P.T. Barnum, the showman of Barnum and Bailey fame.
The four bedroom, four bathroom Hillside, set on Marrowbone Road, has a tennis court, pool and an expansive vineyard, which had been planted by winemaking family the Drayton's almost five decades ago. The vineyard produces shiraz, traminer, verdelho and chardonnay. 
Matt and father Ken, the former News Corp chief, sold their Tower Estates, which included the wine business, in 2013 to Michael Hope. 
They retain ownership of the up-scale hotel Peppers Convent along with its popular restaurant, Circa 1876.
Victor and Maree had been previously active too in Hunter Valley tourism with links to Pokolbin Village, but are best remembered as setting a $20 million Balmoral record in 2005.
This article was first published in the Saturday Daily Telegraph.
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Hillside, Polkolbin resells again at $4 million

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About $10.5 million - and a suburb record runner up - has been snappily secured by the billioniare entreprenuer Mike Cannon-Brookes for his redundant Paddington home through McGrath agent Ben Collier.
Cannon-Brookes, the co-founder of Atlassian, and his fashion-design industry wife, Annie Cannon-Brookes paid $7.3 million for <a href="https://www.mcgrath.com.au/buy/house-paddington-nsw-2021/273700/?searchID=56636468" target="_blank">the Hargrave Street landmark</a> in 2010, after it was on the market for two years.
Now with three children, they have relocated to the $12 million Centennial Park Federation trophy home, Braelin.
<div>Mike Cannon-Brookes was at his San Francisco offices when he signed the sales contract on Friday, before heading off to the Rugby World Cup final. </div>
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<div>It sold within a week of its formal advertising although McGrath selling agent Ben Collier has shows through select buyers since early October.  </div>
The landmark converted Windsor Castle Hotel was sold at a record $13 million price for Paddington last week when bought by hotelier Ben May and his wife, Lucy.
The new residence had been three years in construction by interior designer Rita Polovin and her husband, former restaurateur Peter Polovin who paid $4.3 million in 2009. At the time the hotel prices were going backwards at it fetched $5 million in 2007.
Until last week Paddington's record had stood at $7.75 million - first set in 2006 for a double terrace on Union Street and then matched when developer Stephen Dunkley sold his contemporary Goodhope Street home in 2010.
Duncan and Lynley Hardie had paid $4,625,000 in 2003 for the former House of Desks outlet, then spent $4 million plus converting the former 1907 emporium into a four-storey, but eight level trophy mansion.
This article was first published in the Sunday Telegraph.
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Paddington record runner-up as Mike Cannon-Brookes sells

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The interior designer and television personality Darren Palmer has listed his home in Edgecliff. 
The judge on the hit TV renovation show The Block is off to a bigger, more family friendly home at Bondi Beach.
The redundant three bedroom, two bathroom home - which can be bought with all of Darren's finishes - has been stylishly transformed since it was purchased in 2013.
<a href="https://www.goodyer.com.au/buying/NSW/Eastern-Suburbs/Edgecliff/House/1P3097" target="_blank">Pauline Goodyer of Goodyer Real Estate</a> has the listing inconjunction with <a href="https://doublebay.ljhooker.com.au/MRVF93/21-walker-avenue-edgecliff" target="_blank">David Malouf at LJ Hooker Double Bay</a>.
Based on a recent $2.3 million record sale in the street, the Walker Avenue property will courtyard is estimated to fetch upwards of $2 million.
Ready to move into after its remodelling from a one bedroom abode, it now has two bedrooms downstairs, plus a whole floor upstairs master with walk-in robe, luxury ensuite plus a balcony deck.
The fully renovated Federation Edgecliff home goes to December 1 auction.
Darren has been married for four and a half years to cosmetic industry CEO, Olivier Duvillard. 
Queensland-born Palmer has been involved in design since the age of 17 where he left his home town to study fine art and design.
His property successes included selling his Cahors, Potts Point investment apartment for $540,000 two years ago. 
The couple have decided to live the beach style with their son.
The couple secured their new home in Bondi Beach earlier this year.
Spread across 470 sqm, it is a five bedroom, four bathroom house with a detached self-contained studio surrounded by a lavish oasis garden for their three dogs and a cat to roam around. 
The nice guy judge on The Block, who came to prominence when he filled in for John McGrath, also runs his own successful interior design called Darren Palmer studio.
This article was first published in the Saturday Daily Telegraph.
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Block designer judge Darren Palmer lists Edgecliff home

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GUEST OBSERVER
As is well known, the shortage of affordable separate housing in Sydney and Melbourne means that most first home buyers and renters cannot currently find housing suited to their needs in locations of their choice.
The dominant response from the housing industry and commentators is that governments must unlock the potential for more intensive development of the existing suburbs. From this standpoint, the recent surge in high-rise apartment construction in Sydney and Melbourne is part of the solution.
For those looking at the issue from a financial perspective, escalating housing prices is seen as a reflection of low interest rates, as well as incentives for investors to take advantage of negative gearing and capital gains tax concessions. For the Australian Prudential Regulation Authority, this means the answer is to restrict access to borrowing.
While these factors are important in contributing to the affordability crisis in housing, the issue has deeper roots that lie in the changing demographic make-up of Sydney and Melbourne’s populations.
Our new study on new household and dwelling projections for Sydney and Melbourne from 2012 to 2022, highlights the need for rigorous academic research to inform public urban policy.
To date, policy has been driven by advice from commentators using a flawed evidence base. None have grasped the scale of need for family-friendly housing, or understood the full effects of ageing in place on the availability of detached houses in Sydney and Melbourne.
The projections build on the widely-assumed expectation that Net Overseas Migration (NOM) will continue at 240,000 to 2022 and that Sydney and Melbourne will receive almost of this number.
The household projections assume that the propensity to form households by age group and family type will remain the same as in 2011 in both cities. Projections for dwelling needs were then computed for both cities on the assumption that households will occupy the same type of dwelling (separate house, flat) by family type, age group and migration status in 2022 as was the case in 2011.
On these assumptions, Sydney will need to provide dwellings for an additional 309,000 households and Melbourne an additional 355,000 households over the decade 2012 to 2022.
The key finding is that contrary to most housing industry opinion, the greatest need will be for family friendly dwellings. This is because of the large number of young resident and migrant households who will be entering each city’s housing market. Most of these households are likely to start a family and when they do so, will look for a separate house.
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It is true that there will be a large increase in the number of single person and couple families over the decade. However, most of this increase will be amongst older, already established households. The evidence indicates that the great majority are ageing in place. (See Table 11 in the report.)
The surge in the number of older households is a consequence of population ageing as successive ten-year cohorts replace smaller cohorts born in earlier years. This ageing effect is having an enormous but largely unrecognised effect on Sydney and Melbourne’s housing markets. It will generate the need for an additional 109,570 extra dwellings in Sydney over the decade to 2022 and 161,990 in Melbourne. In addition, net overseas migration will add a dwelling need of 198,810 in Sydney and 193,140 in Melbourne by 2022.
This combination of high dwelling needs of young residents as well as from NOM, along with the blocking effect of the ageing population, is contributing to a severe and continuing squeeze on the detached housing markets in Sydney and Melbourne. This is particularly marked in the inner and middle suburbs.
The reason is that, by 2011, 50 to 60% of this housing stock was occupied by householders aged 50 (See Table 10 in the report). This situation will get worse as the number of these older households increases.
The study compared the recent pattern of dwelling approvals by housing type in Sydney and Melbourne with the needs implied by the dwelling projections. The conclusion was that there are too few separate houses being approved in both cities and too many apartments, especially in Melbourne.
Current policies of urban renewal or urban consolidation in established suburbs will add little to the supply of affordable family friendly dwellings. This is primarily because of the increase in the price of potential building sites. There is a vicious circle in play as the scarcity outlined above contributes to further increases in the price of separate houses and thus to the cost of possible sites for higher density dwellings.
<h2>Implications</h2>
Because few families can afford detached housing in the inner and middle suburbs, more are being pushed into the outer suburbs and the fringes of Sydney and Melbourne. It is still possible to find such affordable housing in the outer and fringe suburbs of Melbourne, but not in Sydney. A detached house costs a minimum of $600,000 even in the remotest corners of Sydney. The only affordable option for most of these home seekers is a unit in these outer suburban locations.
There is no short term fix. In the long term more resident and migrant families are likely to seek affordable housing elsewhere, or in the case of migrants, may by-pass Australia altogether. Those who choose to stay will have to make adjustments to their life-style as by delaying starting a family.
On the other hand, a glut of high-rise apartments is inevitable, although it is being masked by the long lead time in the completion of newly approved apartment projects.
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This is because the recent surge in approvals is way above the need for such dwellings. This is especially the case in Melbourne. The apartments being approved are predominantly tiny 60 square metre or smaller dwellings with no access to protected outdoor space. They are totally unsuitable for raising a family. They are tiny because most investors prefer to buy at prices below $600,000.
Bob Birrell researcher, Monash University and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/bob-birrell-5134" target="_blank">here</a>.
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The root of Sydney and Melbourne’s housing crisis: we’re building the wrong thing

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The Portsea boat shed 23 fetched a record $615,000 when auctioned this weekend.
Set at the foot of the track to Shelley Beach it (pictured above) had been tightly held for over four decades.
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The most recent Shelley Beach, Portsea boat shed auction was on the 2015 Australia Day weekend auction (pictured above) which fetched $553,000 for box 28.
Another boatshed on the beach set a record $585,000 in 2011 when five families competed for the box 27 offering.
In 2010 a pair of young families paid $455,000 for boat shed 21 on Shelley Beach.
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In late 2007 there was a $362,000 sale.
It is one of about 40 bathing boxes on Shelley Beach.
There are about 2000 boatsheds and bathing boxes around Victoria, predominantly on the shores of Port Phillip Bay and Western Port.
Shelley Beach is considered Victoria's most exclusive holiday locale as its offers cliff top owners uninterrupted northern views over the bay.
<a href="https://www.realestateview.com.au/Real-Estate/23-boat-shed-shelley-beach-foreshore-portsea/Property-Details-buy-residential-9557544" target="_blank">Box 23 was offered for Sunday auction onsite by Kay &amp; Burton</a> agent Liz Jensen and auctioned by the agency's veteran Gerald Delany who shows no signs of handing in his gavel as he approaches 65 next week.  
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Shelley Beach, Portsea boatshed sells for record $615,000

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

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While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Jonathan Chancellor

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