<html><body>
Melbourne-based boutique property developer CD Group has paid $6.275 million - a record rate of over $7500 a square metre - for a development site in the heart of Hawthorn.
Set directly opposite Swinburne University, its Teska Carson selling agents Anthony Choi, Tom Maule and Michael Taylor fielded more than 100 enquiries resulting in 10 formal expressions of interest for the <a href="https://www.realcommercial.com.au/property-land+development-vic-hawthorn-501701673" target="_blank">382-386 Burwood Road</a> property.
The development site was considered having first rate amenity including shopping, public transport, schools, parklands and leisure facilities.
The property currently comprises two single-level retail buildings leased to a Korean restaurant and a showroom display suite business on an 836 square metre site.
Zoned Commercial 1, it has 18 metres frontage to Burwood Road, 45 metres to Kent Road and 18 metres to Kent Lane. 
The vendor was a private Chinese family on a long term hold.
</body></html>

jchancellor-FAypfDUnLy

$7500sqm paid for Hawthorn development site

<html><body>
Melbourne’s property market has secured yet another record, with the city’s median house price increasing to $729,500 in the three months to September 30.
<div>
REIV CEO Enzo Raimondo said the median was up 4.5% from the previous quarter.
Property Observer went looking for what buyers can get for around the $729,500 price according to forthcoming auction price guidance.
Here's eight houses we found in that median pricing range:
1. Consider this freestanding Victorian home on one of Flemington's leafiest streets. This two-bedroom home at <a href="https://www.realestateview.com.au/Real-Estate/45-waltham-street-flemington/Property-Details-buy-residential-9667494" target="_blank">45 Waltham Street, Flemington</a> (above) is up for November 7 auction with a $670,000-$730,000 price range through Ryan Currie and Jacqueline Iversen of Jellis Craig. 
<img src="/images/2015/10/21/543-Highbury-Road-Burwood-East-VIC-3151-Real-Estate-photo-1-large-9578790.jpg" alt="" width="525" height="350">
2. School-zoning prospects are available within the median price range including this four-bedroom house on <a href="https://www.realestateview.com.au/Real-Estate/543-highbury-road-burwood-east/Property-Details-buy-residential-9578790" target="_blank">543 Highbury Road, Burwood East</a> (above). The auction is this weekend with price estimates upwards of $700,000. The listing is by Steven Zervas of Fletchers. It is within the Mount Waverley Secondary College Zone.
<img src="/images/2015/10/21/18-Swanston-Street-Mentone-VIC-3194-Real-Estate-photo-1-large-9709470.jpg" alt="" width="506" height="337">
3. A three-bedroom house at <a href="https://www.realestateview.com.au/Real-Estate/18-swanston-street-mentone/Property-Details-buy-residential-9709470" target="_blank">18 Swanston Street, Mentone</a> (above) is up for November 14 auction with a $700,000-$770,000 price range through Pandelis Plousi and Andrew Plousi of Hodges.
<img src="/images/2015/10/21/5-George-Street-Yarraville-VIC-3013-Real-Estate-photo-1-large-9709322.jpg" alt="" width="491" height="327">
4. The three-bedroom <a href="https://www.realestateview.com.au/Real-Estate/5-george-street-yarraville/Property-Details-buy-residential-9709322" target="_blank">5 George Street, Yarraville</a> home (above) is up for November 21 auction with a $725,000 - $750,000 price guidance through Darren Dean and Peter Kelly of Sweeney Estate Agents.
<img src="/images/2015/10/21/11-Cecil-Street-Brighton-East-VIC-3187-Real-Estate-photo-1-large-9701484.jpg" alt="" width="537" height="358">
5. There's even potential in pricey Brighton. A two-bedroom home at <a href="https://www.realestateview.com.au/Real-Estate/11-cecil-street-brighton-east/Property-Details-buy-residential-9701484" target="_blank">11 Cecil Street, Brighton East</a> (above) is going under the hammer on November 14 for $700,000-$770,000 through Tom Davidson and Evan Stewart of Buxton Brighton.
<img src="/images/2015/10/21/7-Dalgety-Street-Preston-VIC-3072-Real-Estate-photo-1-large-9700182.jpg" alt="" width="534" height="355">
6. For those interested in period homes, a two-bedroom 1930s house combining Art Deco detail and modern appeal at <a href="https://www.realestateview.com.au/Real-Estate/7-dalgety-street-preston/Property-Details-buy-residential-9700182" target="_blank">7 Dalgety Street, Preston</a> (above) is up for November 14 auction with a $700,000-$770,000 price guidance through Andrew Guarino and Mario Lionetti of Jellis Craig. It was last sold for $130,000 in 1998.
<img src="/images/2015/10/21/381-Nicholson-Street-Carlton-North-VIC-3054-Real-Estate-photo-1-large-9692142.jpg" alt="" width="552" height="368">
7. Two-bedrooms are popular in this price range, with another at Carlton North on offer. The <a href="https://www.realestateview.com.au/Real-Estate/381-nicholson-street-carlton-north/Property-Details-buy-residential-9692142" target="_blank">381 Nicholson Street, Carlton North</a> (above) home is to be auctioned on November 14 with a $700,000-$770,000 price guidance through Ian Rye and Glenn Bartlett of Woodards.
<img src="/images/2015/10/21/13-Danielle-Crescent-Heathmont-VIC-3135-Real-Estate-photo-2-large-9697642.jpg" alt="" width="524" height="349">
8. This is the furthest out in the list of eight Property Observer feature, but comes with a swimming pool! This four-bedroom house with a partially covered pool at <a href="https://www.realestateview.com.au/Real-Estate/13-danielle-crescent-heathmont/Property-Details-buy-residential-9697642" target="_blank">13 Danielle Crescent, Heathmont</a>, (above) is up for November 14 auction with a $700-$770,000 price range through Reilly Waterfield and Nicole Freene of Fletchers.
Enzo Raimondo said there was currently a range of commentary around market movement, but while the market was cyclical, it was in an upward trend at this time.
“The market is currently on an upwards trajectory. The September quarter was extremely strong and that trend is continuing into the December quarter.”
<table dir="ltr" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td data-sheets-value='[null,2,"Metro Melbourne"]'>Metro Melbourne</td>
<td data-sheets-value='[null,2,"Sep-15 Quarter"]'>Sep-15 Quarter</td>
<td data-sheets-value='[null,2,"Quarterly change"]'>Quarterly change</td>
<td data-sheets-value='[null,2,"Jun-15 Quarter"]'>Jun-15 Quarter</td>
<td data-sheets-value='[null,2,"Annual change"]'>Annual change</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"House"]'>House</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,729500]">$729,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.045]">4.5%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,698000]">$698,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.082]">8.2%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Unit"]'>Unit</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,532000]">$532,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.026]">2.6%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,518500]">$518,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.051]">5.1%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td data-sheets-numberformat='[null,3,"0.0%",1]'> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Inner"]'>Inner</td>
<td data-sheets-value='[null,2,"Sep-15 Quarter"]'>Sep-15 Quarter</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value='[null,2,"Quarterly change"]'>Quarterly change</td>
<td data-sheets-value='[null,2,"Jun-15 Quarter"]'>Jun-15 Quarter</td>
<td data-sheets-value='[null,2,"Annual change"]'>Annual change</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"House"]'>House</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,1236000]">$1,236,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,-0.002]">-0.2%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,1239000]">$1,239,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.175]">17.5%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Unit"]'>Unit</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,560000]">$560,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.024]">2.4%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,547000]">$547,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.024]">2.4%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td data-sheets-numberformat='[null,3,"0.0%",1]'> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Middle"]'>Middle</td>
<td data-sheets-value='[null,2,"Sep-15 Quarter"]'>Sep-15 Quarter</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value='[null,2,"Quarterly change"]'>Quarterly change</td>
<td data-sheets-value='[null,2,"Jun-15 Quarter"]'>Jun-15 Quarter</td>
<td data-sheets-value='[null,2,"Annual change"]'>Annual change</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"House"]'>House</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,861000]">$861,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.044]">4.4%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,825000]">$825,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.136]">13.6%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Unit"]'>Unit</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,586500]">$586,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.017]">1.7%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,576500]">$576,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.088]">8.8%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Outer"]'>Outer</td>
<td data-sheets-value='[null,2,"Sep-15 Quarter"]'>Sep-15 Quarter</td>
<td data-sheets-value='[null,2,"Quarterly change"]'>Quarterly change</td>
<td data-sheets-value='[null,2,"Jun-15 Quarter"]'>Jun-15 Quarter</td>
<td data-sheets-value='[null,2,"Annual change"]'>Annual change</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"House"]'>House</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,550500]">$550,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.051]">5.1%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,524000]">$524,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.079]">7.9%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Unit"]'>Unit</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,415500]">$415,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.039]">3.9%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400000]">$400,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.052]">5.2%</td>
</tr>
</tbody></table>
Source: <a href="https://www.reiv.com.au/home" target="_blank">REIV</a>
Note: All quarterly median prices are seasonally adjusted and quarterly. Annual change is based on rolling annual figures.
</div>
</body></html>

Eight homes set to sell around Melbourne's new $729,500 house median on realestateview.com.au

<html><body>
The national Australian housing market is severely overpriced relative to all the fundamental measures of value: rental incomes, inflation, construction costs, household incomes and GDP.
That is the conclusion of LF Economics duo Lindsay David and Philip Soos who conclude debt-financed speculation as the major cause of the what they describe as "Australia’s largest housing bubble in the nation’s economic history."
"The media and industry has warned housing price growth will begin to moderate and fall, but the latest results from the debt accelerator, Speculative Index and Kavanagh-Putland Index, however, indicates annualised real price growth of 8.9% could remain steady over the course of the next couple of quarters, inflating the bubble further.
They noted nationwide real housing prices surged by 4.3% in 2015Q2, the single largest quarterly increase since 2009Q4.
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%2012.35.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%2012.35.41%20PM.png" alt="">
The duo calculate the price to income ratio has reached record highs in 2015Q2: houses (8.3x) and units (6.4x).
"Both historically and internationally, Australian dwelling prices are extremely expensive and unaffordable relative to household incomes," according to the LF Economics report titled Ahead of the Housing Curve,  written by Lindsay David and Philip Soos.
"Australia is catastrophically overleveraged in terms of private sector debt, particularly the household sector.
"Since 1996, housing prices have outpaced economic fundamentals such as inflation, household incomes, rents, construction costs and GDP, demonstrating the housing market is in the thrall of an asset bubble.
"Australia’s economic history indicates real estate bubbles developed during the 1830s, 1880s, 1920s, mid-1970s and late 1980s.
"Contrary to the analyses of the vested interests, the data overwhelmingly demonstrates Australia is in the midst of the largest housing bubble on record, both in terms of prices to rents and household incomes.
"The government, central bank (RBA), prudential regulator (APRA), FIRE sector (finance, insurance and real estate industries) and their economists predictably deny the existence of a housing bubble, believing a severe downturn in the housing market simply cannot occur.
"The usual arguments put forward are the same as those made everywhere else a housing bubble has occurred: prudent lending practices, deregulation of finance, recourse mortgages, dwelling shortages, restrictions on land supply, low nominal interest rates and inflation, population growth, demographic change and so on.
"Today, after centuries of asset bubbles, mainstream economists have yet to determine and define what they are, so debate on the matter is kept necessarily vague.
"Housing bubbles are poorly understood, if at all, on the basis of ‘irrational exuberance’ or ‘chasing capital gain’.
"No rational explanation can be made as to why housing prices have so radically departed from fundamental factors, most notably rental prices.
"The data strongly suggests the boom in real housing prices are not caused by any commensurate movement in economic fundamentals, but rather, debt-financed speculation as evidenced by the exponentially growing stock of mortgage debt.
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%2012.37.53%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%2012.37.53%20PM.png" alt="">
The report concludes there is greater awareness among policymakers and public of the housing bubble and its potential for wealth destruction.
"While there is more to say about Australia’s fascinating and quite dangerous economic experiment with financialisation and real estate speculation, the data and commentary in this report illustrates the long-term trends in the housing and debt markets, providing the necessary proof that a housing bubble does indeed exist and therefore represents a clear and present danger to the economy and banking system," the LF Economics report concluded.
For the full report from LF Economics, <a href="https://www.lfeconomics.com/news" target="_blank">click here</a>.
</body></html>

Catastrophically overleveraged as Australia’s largest housing bubble in history continues: LF Economics

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The minutes from the RBA’s October meeting suggested little change for the near term path for monetary policy. While there are clearly concerns over growth prospects in China and East Asia, on the domestic front the tone was quintessentially ‘glass half full’. 
On the domestic front, the minutes suggested:
Soft GDP growth in Q2 reflected temporary weather-related disruptions and overall growth was expected to have strengthened in Q3. There was further evidence of a rebalancing of growth supported by the lower AUD (through net services trade) and lower rates (through housing construction and consumer spending).
The Board remains uncertain about the housing outlook. The minutes noted that it was too early to be confident that signs of slowing house prices would be sustained. They also highlighted the unreliability of the housing finance numbers, noting that “the data on the split of lending to owner-occupiers and investors were of questionable quality at present”. On the financial stability front, the Board noted that increased competition in the owner-occupied and business lending sectors suggested that “a key challenge would be to ensure that lending standards at both Australian and foreign-owned banks did not weaken from this point”.
The Board seems somewhat more comfortable about the risks posed by strongly growing house prices, noting that ”the response of the banks to supervisory measures implemented by APRA were helping to manage risks in the housing market”.
On the global front the tone was more cautious:
Concerns remain raised about the outlook for growth in China and East Asia. In particular, the minutes highlighted the slowdown in industrial production and exports in the region and noted that ongoing below-average growth remains “a source of concern for the strength of the global economy”. 
The October board meeting pre-dated last week’s move by Westpac to increase mortgage rates by 20bps, although the announcement would not have come as too much of a surprise to the RBA. Governor Stevens noted in July that higher mortgage rates were to be expected given the increased capital requirements for major banks. We continue to expect the RBA to wait until next year to cut rates, when the stimulus from housing and the lower AUD are likely to fade. However, if other major banks follow Westpac’s lead in coming weeks, a late 2016 rate cut cannot be ruled out. 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/felicity-emmett/5a/3ba/256" target="_blank">here</a>.
</div>
</div>
</div></body></html>

No direction change from RBA: ANZ's Felicity Emmett

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">GUEST OBSERVER</div>
<div class="column"> </div>
<div class="column">Consumer sentiment predictably eased last week after a stellar gain in the previous week. </div>
<div class="column"> </div>
<div class="column">Concerns about higher interest rates and the outlook for the housing market together with a softer Aussie dollar led to the modest softening of sentiment. But consumers are still more upbeat than a year ago and sentiment is above the short- term average. Also, the Reserve Bank believes that the question on the outlook for family finances is most instructive and the latest result is still well above average levels.</div>
<div class="column">
 The Reserve Bank Board rationalised the soft economic growth figures in the June quarter: “The weakness in the June quarter had reflected temporary, weather-related disruptions to resource exports as well as the ongoing decline in mining investment.” The Board expects a pickup in the September quarter. If this fails to occur, then this could prompt the Board to assess the need for more stimulus.
</div>
<div class="column">
 Overall the RBA Board remains watchful – there are no indications that the neutral policy stance was likely to change any time soon.
</div>
<div class="column"> </div>
<div class="column">What do the figures show?</div>
<div class="column">
 Consumer sentiment
</div>
<div class="column">
 The weekly ANZ/Roy Morgan consumer confidence rating fell 2.0% to 113.3 in the week to October 18 from a 15-week high. Confidence is up 1.5% over the year and above the average of 111.4 since 2014.
</div>
<div class="column"> </div>
<div class="column"><a href="/images/2015/10/20/Screen%20Shot%202015-10-20%20at%201.16.28%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="column"> </div>
<div class="column"><img src="/images/2015/10/20/Screen%20Shot%202015-10-20%20at%201.16.28%20PM.png" alt=""></div>
<div class="column">
 Four of the five components of the index eased in the latest week:
</div>
<div class="column">
 <ol>
<li>
The estimate of family finances compared with a year ago was down from +9 to +8;
</li>
<li>
The estimate of family finances over the next year was down from +30 to +25;
</li>
<li>
Economic conditions over the next 12 months was steady at -1; 
</li>
<li>
Economic conditions over the next 5 years was down from +13 to +11;
</li>
<li>
The measure of whether it was a good time to buy a major household item was down from +27 points to +23 points. 
</li>
</ol>
</div>
<div class="column">
The key quotes from the Board minutes:
Stronger growth expected: “Members noted that overall growth was expected to have strengthened in the September quarter, with indications of growth in resource exports and dwelling investment.”
Risks: “The key domestic sources of risk to financial stability, and stability of the Australian economy more broadly, revolved around developments in local property markets.”
Job market: “Members also noted that conditions in the labour market had strengthened further over recent months and were somewhat better than had been expected earlier in the year. Nevertheless, spare capacity remained in the economy, domestic cost pressures were very low and inflation was expected to remain consistent with the target over the next one to two years.”
Bank lending: “Banks were also reportedly becoming increasingly wary of lending to property developers in markets that were thought to be at risk of becoming oversupplied.”
Housing data: “In relation to lending for housing, members noted that the data on the split of lending to owner-occupiers and investors were of questionable quality at present.”
Imports of goods
The Australian Bureau of Statistics noted the following. “Preliminary analysis shows that goods debits (imports) on a balance of payments basis in original terms rose $1,562m (7%) to $25,043m between August and September 2015.
In seasonally adjusted terms, goods debits rose $332m (1%) between August and September 2015 to $23,853m. This is the highest on record surpassing the revised August 2015 estimate of $23,521m. Consumption goods rose $264m (3%) and non-monetary gold rose $161m (47%). Intermediate and other merchandise goods fell $59m (1%) and capital goods fell $34m (1%).
What is the importance of the economic data?
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.
What are the implications for interest rates and investors?
CommSec expects no change to interest rates over the coming year. 
</div>
<div class="column">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column"> </div>
<div class="column"><a href="/images/2015/10/20/Screen%20Shot%202015-10-20%20at%201.15.28%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="column"> </div>
<div class="column"><img src="/images/2015/10/20/Screen%20Shot%202015-10-20%20at%201.15.28%20PM.png" alt=""></div>
<div class="column"> </div>
<div class="column">
 Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.  
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

RBA tips firmer growth: CommSec's Savanth Sebastian

<html><body>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The government’s response to the Financial System Inquiry is good news for consumers and will help promote a competitive and diverse banking and financial landscape and we congratulate the government on accepting the majority of Inquiry Chair David Murray’s recommendations, which were handed down in late 2014.
The recent announcement by the government is good news for customers and will continue to enhance the integrity, competition and transparency in our financial system in Australia. 
I’m pleased to see there will be a stronger focus on competition in the sector, through the inclusion of competition in ASIC’s mandate and also through the commitment to review competition in the financial system by the end of 2017. 
CUA hopes this is just the beginning, and that we will see a continued focus on competition going forward, including regular rolling reviews of competition within the financial system.
We welcome the requirement for transparency around vertically integrated financial advice and mortgage broking businesses, owned by larger banks, and for higher standards in financial advice and acknowledge the steps the government and regulators, including the Australian Prudential Regulation Authority (APRA), have already taken in recent months in response to recommendations which came out of the Inquiry.
The government’s decision earlier this year to not proceed with a levy on deposits was a sensible outcome which was in the best interests of Australians and customer-owned institutions like CUA. 
Likewise, I’m pleased to see the government has endorsed the steps already taken by APRA towards requiring the majors to hold more capital against home loans and the release of a discussion paper on capital levels for ADIs. Both of these are positive outcomes for consumers and customer-owned lenders like CUA. 
CUA looks forward to APRA implementing the broader international work on risk weights for mortgages - the so called Basel 4 approach - which could enable our sector to allocate more appropriate levels of capital to customers with lower loan to valuation ratios. This tailored approach has been missing from our repertoire and will be a major step forward for mutuals given our focus on the customer.
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
The CUA would seek further details on some of the proposed actions and how they would impact CUA, including changes to the definitions around term deposits. 
We look forward to continuing to work closely with industry stakeholders, regulators and the Government on implementing these measures so Australians can continue to enjoy a strong, secure and competitive financial services landscape. 
 
Rob Goudswaard is Chief Executive Officer, CUA and can be contacted <a href="https://www.cua.com.au" target="_blank">here</a>.
</div>
</div>
</div>
</body></html>

CUA applauds measures to promote competition in financial services

<html><body>
Vacant residential space in Melbourne and regional Victoria has been relatively flat over the past four months, with vacancy rates stable at 2.9% and 2.4% respectively.
The median rent for houses in metropolitan Melbourne also remained flat over the month at $400 while rents in regional Victoria were up 1.7% to $295 a week, <a href="/news">according to the REIV</a>.
 
<table dir="ltr" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td> </td>
<td rowspan="1" colspan="2" data-sheets-value='[null,2,"Vacancy Rate"]'>Vacancy Rate</td>
<td rowspan="1" colspan="2" data-sheets-value='[null,2,"Median Rent"]'>Median Rent</td>
</tr>
<tr>
<td> </td>
<td data-sheets-value='[null,2,"July 2015",null,null,null,1]'>Sep 2015</td>
<td data-sheets-value='[null,2,"June 2015",null,null,null,1]'>Aug 2015</td>
<td data-sheets-value='[null,2,"July 2015",null,null,null,1]'>Sep 2015</td>
<td data-sheets-value='[null,2,"June 2015",null,null,null,1]'>Aug 2015</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"METRO"]'>METRO</td>
<td data-sheets-value="[null,3,null,2.9]">2.9</td>
<td data-sheets-numberformat='[null,2,"0.0",1]' data-sheets-value="[null,3,null,3]">2.9</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400]">$400</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400]">$400</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"REGIONAL"]'>REGIONAL</td>
<td data-sheets-value="[null,3,null,2.4]">2.4</td>
<td data-sheets-value="[null,3,null,2.3]">2.4</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,290]">$295</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,290]">$290</td>
</tr>
</tbody></table>
 
 
The following table provides a summary of median prices and rents for the 12 months ending June 2015.
<table dir="ltr" border="0" cellspacing="0" cellpadding="0">
<colgroup>
<col width="152">
<col width="152">
<col width="156">
<col width="159">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='[null,2,"Region "]'>Region</td>
<td data-sheets-value='[null,2,"Gross Rental Yield"]'>Gross Rental Yield</td>
<td data-sheets-value='[null,2,"Median Rent"]'>Median Rent</td>
<td data-sheets-value='[null,2,"Median Price"]'>Median Price</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Inner"]'>Inner</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.032]">3.1%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,490]">$490</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,804000]">$825,000</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Middle"]'>Middle</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.029]">2.9%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,345]">$350</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,627500]">$633,500</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Outer"]'>Outer</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.039]">3.8%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,300]">$300</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,400000]">$410,000</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Metro"]'>Metro</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.03]">3.0%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,410]">$410</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,700550]">$710,750</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"Regional"]'>Regional</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.053]">5.3%</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,250]">$250</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,245500]">$247,500</td>
</tr>
</tbody>
</table>
 
</body></html>

Melbourne median rent sits at $400 a week: REIV

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
 The headline CPI lifted 0.7% in Q2 compared to the market’s expectation for 0.8%. The annual rate was 1.5%yr. Despite a downside surprise on food, the CPI came broadly in line with expectations as housing continued to underpin modest outcomes for core and non-tradeable inflation.
The core measures, which are seasonally adjusted and exclude extreme moves, rose 0.5%qtr right on Westpac’s estimate. In the quarter, the trimmed mean gained 0.56% while the weighted median lifted 0.51%. The annual pace of the average of the core inflation measures is now 2.3%yr, a slight moderation from the 2.4%yr pace of Q1. 
In Q2 petrol prices surged (12.2%qtr), but the big surprise was the soft print on food, –0.2%qtr, in part due to a –1.2% for fresh fruit &amp; vegetables. Also surprising on the downside was a –3.5% fall in holiday travel. Clothing &amp; footwear was as expected at 1.3%qtr. 
Housing costs continue to underpin both core and non-tradeable inflation, rising 0.7%qtr, driven by a solid 1.5% gain in dwelling purchase prices. To this was added solid gains in hospital &amp; medical services (3.4%qtr) and alcohol &amp; tobacco (1.2%qtr). The modest offsets came from pharmaceuticals (–1.8%qtr), audio visual &amp; computing services (–1.6%qtr) and communications (–0.6%qtr). 
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.54.43%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.54.43%20AM.png" alt="">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
The September quarter has many ‘unknowns’ (as always). 
For the September quarter we have identified three large forces pushing the CPI in one direction with few significant offsets. But, as always, a large number of unknowns remain. We don’t have access to a lot of the data the ABS uses and, in many cases, it is not possible to replicate the survey process the ABS uses causing many small errors along the way.
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.56.40%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.56.40%20AM.png" alt="">
 
Automotive fuels are a modest negative. 
One of the most obvious events in the last few quarters has been the extreme volatility in the pump price of automotive fuels. From a peak at the start of the quarter of $1.42/l, the pump price fell to a low of $1.27/t before ending the quarter around that level. In terms of the quarterly averages, we forecast that the price of automotive fuels will fall 2.4% in the quarter producing a very small —0.09ppt drag on the CPI. Fuel is the most significant negative we have found for the September quarter CPI. All others are estimated to be individually worth –0.03ppts or less for the CPI. 
A number of meaningful positives are setting the foundations ... 
The most significant positives in the September quarter are fresh fruit &amp; vegetables (+0.10ppts), the indexing of the tobacco excise to the CPI (+0.08ppts), new dwelling purchases (+0.11ppts), household contents (0.11ppts) and holiday travel (0.21ppts). 
... such as fresh fruit &amp; vegetables ... 
The wholesale price of vegetables rose 1.2% in Q3 following a solid 1.8% in Q2. For Q3 we have pencilled in a small 0.5% rise in the CPI measure of vegetable prices; they fell 1.7% in Q2 and we suspect the larger than usual seasonal fall in potato prices may have had a role to play. Nevertheless, we can’t be sure how movements in the wholesale price have been passed on at the retail level. 
Wholesale fruit prices jumped 7.2% in Q3 following a 25.2% surge in Q2. Despite this, fruit prices in the CPI fell 0.7% in Q2 so we are expecting some residual catch to appear in Q3, but are cognisant that increased competition in the supermarket sector may limit this, hence our forecast for just a 6.0% increase in CPI fruit prices in Q3. 
All together, we are forecasting fruit &amp; vegetable prices to rise 3.5%qtr contributing 0.10ppts to the CPI. 
... tobacco excise re-indexing ... 
In the month of September the tobacco excise is indexed to the annual increase in the CPI to the June quarter. This means that one third of the increase appears in the September quarter and two thirds in the December quarter. For the September quarter we estimate that this re-indexing, along with normal seasonal retail price increases, lifted tobacco prices by 2.6% and is worth 0.06ppts for the CPI. 
... dwelling price gains in NSW &amp; Vic ... 
Dwelling prices can be very volatile from capital city to capital city and quarter to quarter. Melbourne dwelling prices have been particularly volatile of late, rising 0.8%qtr in the December quarter, falling 0.1%qtr in the March quarter then rising 2.0% in the June quarter. By comparison, Sydney prices have been trending higher and rose 2.4% in the June quarter. In the June quarter, dwelling prices rose 1.5%qtr, the strongest rise in dwelling prices since the 1.6%qtr print in June 2014. Westpac is expecting some moderation from Melbourne and Brisbane, which will see dwelling prices rise 1.3% in September quarter contributing 0.11ppts. 
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.57.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%208.57.53%20AM.png" alt="">
 
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
... and housing overall making a positive contribution. 
For housing costs there is a small offset from the fall in electricity prices, we estimate around –4.0%qtr on average across the country, as regulated electricity prices fall. This is worth –0.08ppts on the CPI. Other housing components such as rents, other housing costs and non-electricity utilities, are set to continue to rise, resulting in a 0.9%qtr lift in total housing costs, contributing 0.20ppts for the CPI. 
We are also looking for a very modest AUD depreciation boost to the usual seasonal Q3 rise in household contents and services. Our forecast 1.2%qtr rise follows on from a 1.0% rise in the June quarter and will contribute 0.11ppts to the Q3 CPI. 
The Q2 fall in holiday travel costs will be reversed in Q3 
Holiday travel surprised in the June quarter falling 3.5% due to a –5.4% print from domestic holiday travel. The BITRE (Bureau of Infrastructure, Transport &amp; Regional Economics) data on the best price economy airfares was pointing to a flat print in Q2 followed by a large fall in Q3; but as you can see in the chart, the timing when the BITRE data price moves and when it appears in the CPI appears to have shortened. As such, we are looking for a 2% bounce in domestic holiday costs, which will add to the 7.2% rise in international holidays. The rise in international holidays is due to both seasonal factors and a trickle through impact of the depreciation of the AUD.
<a href="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%209.00.05%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/21/Screen%20Shot%202015-10-21%20at%209.00.05%20AM.png" alt="">
Overall seasonality is a reasonable positive in Q3 
Using the ABS’s seasonal factors, the seasonally adjusted CPI rises 0.6%qtr compared to our headline forecast of 0.8%. There is an important caveat however; the ABS conducts concurrent seasonal re-analysis, and the revisions to the seasonal factors can sometimes be quite significant. As such, we caution that we can’t be sure what the ABS will estimate as the seasonal impact in Q3. This matters as the components of the CPI are seasonally adjusted before they are trimmed for the core measures. As such, revisions to the seasonal factors can impact the historical estimates of core inflation. 
Core inflation to remain within the band 
Westpac is forecasting the average of the core measures to rise 0.5% in Q3, lifting the annual pace to 2.4%yr from 2.3%yr in Q2. More importantly, the six month annualise pace of core inflation is forecast to drop to 2.1%yr in Q3, from 2.5%yr in Q2 and a recent peak of 2.8%yr in Q1. 
Traded goods &amp; services are forecast to rise 0.8%qtr, lifting the annual pace to 0.2%yr from –0.3%yr; non-traded prices are also forecast to rise 0.8%qtr, but this takes the annual pace to 3.0%yr from 2.6%yr. Domestic, non-traded prices remain the key source of inflationary pressures, with housing and recreation remaining the key factors in the quarter. 
Conclusion 
A solid Q3 headline print is due to rising fresh fruit and vegetable prices, the re-indexing of tobacco excise and a bounce in holiday travel costs which add persistent gains in housing. While this is keeping inflation ticking along, the annual pace remains below the band and the six month annualised pace for the core measure is forecast to ease back to the bottom of the band. On balance, Australia does not face the risk of an inflation breakout nor the commencement of a significant disinflationary impulse. Inflation remains neutral for monetary policy.
 
 
Justin Smirk is senior economist, Westpac, and can be contacted <a href="https://www.westpac.com.au" target="_blank">here</a>.
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Solid dwelling prices, but September quarter has many ‘unknowns’: Westpac's Justin Smirk

<html><body>
Sydney's lower north shore had two properties selling under the hammer on Saturday for $4.255 million.
They were at the auctions of <a href="https://www.realestate.com.au/property-house-nsw-longueville-120788937" target="_blank">19 Dettman Ave, Longueville</a> (above) and <a href="https://www.realestate.com.au/property/71-carlotta-st-greenwich-nsw-2065" target="_blank">71 Carlotta St, Greenwich</a> (below).
<img src="/images/2015/10/21/700_greenwich.jpg" alt="" width="535" height="325">
Both through McGrath Lane Cove selling agent Brent Courtney. 
The four-bedroom house at Longueville was designed by Walter Barda overlooking Tambourine Bay.
The sale exceeded the $3.9 million reserve and the initial $3.4 million price guidance.
It sold to expats who are moving back from New York, News Ltd papers reported.
Upsizers secured the five-bedroom house in Greenwich from the recently appointed Spotless chief Martin Sheppard and his wife, Donna, now based in Melbourne.
Brent Courtney secured the that sale price under the same hammer for the Longueville home of Amanda Roche, wife of SNP Security boss Thomas Roche.
</body></html>

$4.255 million secured twice at Sydney weekend auction

<html><body>
The federal government has rejected the Murray review's proposal to ban self-managed superannuation funds from borrowing to buy property.
The new Treasurer Scott Morrison said yesterday there was insufficient evidence to support an immediate ban on borrowing.
"The information collected on this doesn't lead us towards that conclusion at this point," he said. 
However, regulators would be asked to monitor the situation closely and report their findings to the government, he said. 
The decision to reject a borrowing ban, which was recommended by the Murray Inquiry amid concerns about the stability of the system if property prices crash, will be welcomed by super fund investors.
In August then Assistant Federal Treasurer Josh Frydenberg gave the strongest signal yet that the then Abbott Government would not implement a recommendation to ban do-it-yourself super funds from borrowing to invest in property.
"I want to emphasise that we have been considering this recommendation very carefully but flag that we want to make sure the approach we take is proportionate to the risks that have been identified," he said adding to put it in context "only 0.07%, perhaps 6,500 properties, were held in an SMSF through a limited recourse borrowing arrangement in 2013." 
</body></html>

SMSF borrowing ban ruled out by Treasurer Scott Morrison

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."

[smartcode_project:default project_id=149670 project_image_fid=360975]

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.

&nbsp;

[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.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

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.

[smartcode_project_cta:default project_id=146717]

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.

[smartcode_project:default project_id=134323 project_image_fid=6395]

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.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News