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GUEST OBSERVATION
More students are travelling overseas for their education than ever before. The numbers of international students have risen sharply over the last 15 years. In Australia, around 153,000 international students were enrolled in 2000, while in 2009 the number grew to 631,000.
However, since 2009, the Australian international education market has shrunk. International student numbers fell to almost 514,000 in 2012. Fewer international students has led to falling revenue, from A$16.4 billion in 2009 to A$14.5 billion in 2012.
In the current challenging circumstances, the Australian government is trying to reverse this decline by improving visa regulations for international students. On the other hand, the education budget to higher education has been cut.
But how much will the budget cut damage Australian education exports and how much will visa regulation improvements make up for it? Our recent study published in the Australian Journal of Education found efforts to improve visa processing were not as important as university rankings or affordability.
Where are they from and where do they go?
China is the top country of origin for international students in the world. In 2013, some 236,000 Chinese outbound students constituted nearly 29% of the global total of international students.
The number of international students from the second-ranked country of origin, India, was less than half that of China’s.
Chinese students mainly enrolled in the higher education sector (61.9% in 2013) in Australia. This sector also generated the biggest part of the education export profit, at 68.3% in 2013.
Other countries are also competing for Chinese students. At the higher education level, most Chinese students chose the United States: 27.6% went to the US while 11.5% chose Australia.
Destination country safety
Our recent study tried to determine which factors have been influencing international students’ decisions on where to study.
The results show that destination country safety is an important choice determinant. Chinese students are not necessarily limiting themselves only to countries with a high safety ranking, but they’re unlikely to choose a country with a very low safety ranking.
This suggests that it is important for a country seeking to attract Chinese students to maintain and/or enhance its perceived level of safety and to promote itself as much as possible as a safe place for Chinese students to study.
University ranking and educational quality
Another major factor in the decision-making process is the destination country’s university rankings and general standard of education. The study shows that Chinese students assign a relatively high value to university rankings compared to other factors.
In the context of the release of the 2014 Times Higher Education rankings, funding cuts to Australia’s higher education sector were associated with a negative effect on university ranking. This may discourage Chinese students from pursuing higher education in Australia.
Costs and scholarships
The study also indicated out-of-pocket expenditure was an important factor. This suggests the recent depreciation of the Australian dollar may help to attract foreign students into the international higher education sector. However, it is unlikely that exchange-rate-induced expenditure changes would be sufficiently large to result in major increases in Chinese student numbers.
The study suggests scholarships for university fees and living expenses would have a major positive effect on demand from Chinese students. The Chinese government provides scholarships for high-achieving domestic students to pursue Masters and PhD degrees abroad through the China Scholarship Council (CSC).
As an indication of the level of financial support, each CSC student enrolled at an Australian university receives a scholarship worth around A$20,000 a year to cover all expenses, including university fees and living expenses.
Retaining and fostering connections with the CSC, in order to increase the number of available scholarships, could provide an alternative to potentially dwindling Australian country-level or university-level scholarships.
Visas for international students
The study results indicated positive effects of a reduction in student visa processing time, an increase in the post-study visa duration and a decrease in immigration language requirements.
However, these effects were relatively small compared with destination safety, university rankings and study and living costs.
Hence, while the recently implemented streamlined visa process and the post-study work visa policies in Australia may have some positive effect on attracting more Chinese students, the study findings support the statement in the Knight review that Australia’s student visa program cannot solve all of the problems facing the international education sector.
Efforts to increase the attractiveness of Australia for higher education seem to revolve around the ease and speed of obtaining a student visa and a post-study work visa. While these are shown in the study to be important factors, the findings also point to the fact that visa policies would appear somewhat less relevant than other factors.
Efforts should be focused on more important factors such as safety, university rankings and scholarship conditions to attract more Chinese students.
Xue Gong is lecturer at the School of Economics and Management at Nanjing University of Science and Technology and can be contacted <a href="https://theconversation.com/profiles/xue-gong-187138" target="_blank">here</a>.
Twan Huybers is associate professor at UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/twan-huybers-187819" target="_blank">here</a>.
Both are authors for The Conversation.
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What attracts Chinese students to Aussie universities?

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The Dulux chairman Peter Kirby and wife, Erica secured $6.5 million when their Kirribilli, Sydney bolthole went to recent auction.
The price was around $1 million more than initial buyer interest for the three bedroom, two bathroom apartment <a href="https://raywhitelowernorthshore.com.au/nsw/kirribilli/1337734/" target="_blank">in the coveted Kirribilli Grande complex</a>.
The Mount Eliza-based couple bought the 180 sqm apartment for $3.2 million in 2001 after the site was developed by the Waterhouse bookmaking family in partnership with Macau casino tycoon Stanley Ho.
Kirby, one of the nation's career industrialists, says he loves the transformative potential of paint, though his apartment appeared mostly white.
This article was first published in The Saturday Daily Telegraph.
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Dulux chairman secures $6.5 million for all white Kirribilli apartment

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AMP Capital has purchased the Stud Park sub-regional shopping centre in Rowville in Melbourne's south east for $154 million.
It was bought from an unlisted Lend Lease wholesale fund on a net yield of 6%.
Stud Park will be owned by investors in AMP Capital's unlisted $700 million Wholesale Australian Property Fund, which comprises 11 properties, including the Casula Mall in south west Sydney.
The 26,100 square metre Stud Park Shopping Centre is 32 kilometres south east of the Melbourne CBD, is anchored by Coles and Woolworths supermarkets and a Kmart department store, alongside 58 specialty retailers.
It also houses the Rowville public library and has 1500 car spaces.
The fully-leased mall stands on its 10.3 hectare site sold through Lachlan MacGillivray, head of retail investment services at Colliers International inconjunction with Stonebridge Property Group.
Stud Park last traded for $102 million in January 2010 on a seven per cent yield, when it was acquired by Lend Lease's unlisted Australian Prime Property Fund arm. 
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AMP buy Stud Park, Rowville shopping centre from Lend Lease

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The music mogul who discovered some of Australia's biggest contemporary acts, Stephen Pavlovic has bullishly sold his Bondi Beach home.
The former Sydney PR queen Sophie Landa has emerged as the buyer of the single storey cottage on the 420 sqm Ramsgate Avenue block, just 20 metres to the sand and surf across Campbell Parade.
Legal paperwork solved the mystery after the reputed $4.9 million pre-auction sale.
It was marketed as <a href="https://www.ppdre.com.au/buying/NSW/Eastern-Suburbs/Bondi-Beach/House/1P1214" target="_blank">the ultimate beachfront opportunity</a>.
"Designer interiors capture the essence of barefoot glamour with an intimate connection with its seaside setting achieved through an organic palette, pared-back interiors and a sunny garden paradise devoted to entertaining and relaxation," was the successful marketing pitch by the Phillips Pantzer Donnelley agency.
Pavlovic's Modular Recordings music label promoted some of coolest bands to come out of Australasia, including Sneaky Sound System, the Avalanches, Wolfmother, the Presets and Tame Impala.
Pavlovic recently quit the company he founded 18 years ago having lost a four day NSW Supreme Court dispute with Universal Music.
Levitt Robinson, Pavlovic's lawyer in the recent royalties dispute, has also taken a caveat on the property title pursuant to legal fees. 
Heiress Sophie Landa is the the daughter of the late NSW attorney-general Paul Landa and his arts patron wife Anne
The 34-year-old funds an arts prize in her mother's honour.
The freestanding classic double-brick home, one of the closest to Bondi's world-famous surf, last sold at $2.12 million in 2005.
It was marketed as in a tightly held setting at the fashionable north end of the beach, opposite the North Bondi Surf Life Saving Club.
This article was first published in the Sunday Daily Telegraph.
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Music mogul Stephen Pavlovic secures $4.9 million single storey Bondi Beach sale

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Channel 9 weather presenter Livinia Nixon has put her Victorian, Middle Park investment home on the market.
<a href="https://www.realestate.com.au/property-house-vic-middle+park-120611101" target="_blank">Located on Richardson Street</a>, the three-bedroom, two-bathroom, two storey Victorian has been extensively renovated and extended.
Pictures below are prior to renovations.
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Set for auction on September 26, the home last traded in <a href="https://www.realestate.com.au/property-house-vic-middle+park-104329788" target="_blank">October 2007 for $1,853,000</a>. Title Tattle seems to recollect it was bought from the Bulldogs footballer Luke Darcy.
<img src="/images/2015/09/03/700_liv2.jpg" alt="" width="593" height="360">
John Holdsworth of Greg Hocking Holdsworth has the listing. Next door <a href="https://www.realestateview.com.au/Real-Estate/293-richardson-street-middle-park/Property-Details-sold-residential-8426382" target="_blank">sold earlier this year at $1.77 million</a>, having sold for just $70,000 more than its $1.7 million sale in 2013.
<img src="/images/2015/09/03/700_liv1.jpg" alt="" width="542" height="329">
Nixon is married to the property developer Alistair Jack and has two sons, Henry, born in 2010, and Ted born in 2013.
<img src="/images/2015/09/03/700_liv3.jpg" alt="" width="502" height="305">
Neighbouring property pictured below.
<img src="/images/2015/09/03/293-Richardson-Street-Middle-Park-VIC-3206-Real-Estate-photo-1-large-8426382.jpg" alt="" width="623" height="416">
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Middle Park spring listing from Nine News weather presenter Lavinia Nixon

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The headline growth figures certainly look a bit on the soft side. But the breakdown of the growth components provides a much more interesting picture. 
Government consumption provided the biggest contribution to growth while household consumption held up relatively well. The biggest drag was net exports which detracted 0.6 percentage points from growth. In addition the drawdown in inventories also crimped growth by 0.2 percentage points. Overall, not an “ideal” mix of growth drivers, but close enough for this point in the cycle. 
The good news is that productivity is still rising while wage costs are falling and price pressures are restrained.
The economic growth figures are largely important as an historical record. But the data can’t tell us much about the here and now. And certainly the figures have limited use in telling us where the economy is going. But for the Reserve Bank the data serves as a base for its forecasts. It’s a case of ticking the figures off to ensure that there are no surprises. 
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<div class="column">Overall the data confirms that growth over the past year has been below trend but “ok” for an economy that is going through a generational transition. Despite all the doom and gloom about the winding back of mining investment, fiscal contraction and horror stories about the collapse of the manufacturing sector it is pretty clear that the economy is in reasonable shape – certainly in better shape than most other so-called “advanced” economies.</div>
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 While media commentary is likely to focus on the fact that growth is a touch on the soft side the key point is that Australia has completed 24 consecutive years of growth. It is an achievement to be celebrated. And interestingly the drawdown in inventories in the quarter may be as a result of the lift in domestic demand, and it does mean that businesses will be re-stocking shelves in coming quarters – supporting the overall growth figures.
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 Looking forward growth will continue to remain mixed over the next few months. The transition from mining to housing-led investment continues to be the dominant driver of activity. Although somewhat encouragingly the ongoing lift in consumer and business confidence is now translating through to a lift in risk appetite and investment plans.
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 CommSec tips the economy to grow by 2.75-3.00% over the coming year. CommSec believes that given the ongoing below trend growth outcomes, the Reserve Bank is unlikely to lift interest rates over the next year. 
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<div class="column">What do the figures show?</div>
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 National Accounts:
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 Economic Growth: The economy grew by 0.2 per cent in the June quarter after a 0.9 per cent increase in the March quarter.
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The economy has grown 2.0 per cent over the past year, below the decade-average growth rate of 2.8 per cent and below the 15-year average of 2.9 per cent. In 2014/15, the economy grew by 2.4 per cent.
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 The non-farm economy grew by 0.2 per cent in the June quarter after a 0.9 per cent lift in the March quarter. Annual growth stands at 1.9 per cent.
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Farm GDP fell by 2.6 per cent in the June quarter after rising by 0.3 per cent in the March quarter. Farm GDP rose 4.1 per cent over the year.
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At current prices, GDP rose by 0.3 per cent in the quarter to be up by 1.6 per cent over the year. The annual growth rate is well below the decade average of 6.2 per cent. Over the year to June 2015, the Australian economy was valued at $1,612 billion.
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Growth drivers: The biggest contributions to growth came from government consumption (+0.4 percentage points), followed by household consumption expenditure (+0.3pp), and public investment (+0.2pp). The biggest drag on growth was net exports (exports less imports) (-0.6 percentage points), inventories (-0.2pp) and dwelling investment (-0.1pp).
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 Inflation: In terms of domestic price pressures, the household consumption implicit price deflator rose 0.7 per cent in the June quarter after a 0.3 per cent lift in the March quarter. Annual growth stands at just 1.4 per cent. Real non-farm unit labour costs rose by 1.1 per cent in the June quarter after falling by 0.6 per cent in the March quarter. Real non-farm unit labour costs rose by just 0.9 per cent over the year. 
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Productivity: Gross value added per hours worked in the market sector rose 0.4 per cent in the June quarter after 0.3 per cent growth in the March quarter. Annual growth stands at 0.8 per cent. Hours worked in the market sector were up 0.3 per cent in the quarter to be up 1.7 per cent for the year.
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States &amp; Territories: The best description of the performance of States and Territory economies is state final demand plus net exports. The ACT had the fastest annual growth rate in the June quarter (up 5.4 per cent), followed by Victoria (up 2.9 per cent), NSW (up 2.4 per cent), South Australia (up 0.7 per cent) and Tasmania 
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<div class="column">(up 0.5 per cent). The Northern Territory contracted by 11.4 per cent followed by Western Australia (down 2.4 per cent) and Queensland (down 0.8 per cent).</div>
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Consumer spending lifts. Household spending rose by 0.5 per cent in the June quarter to be up 2.5 per cent for the year. Only five of the 17 sectors recorded weaker spending in the quarter. Spending on Health rose by 2.5 per cent followed by Communications (up 1.9 per cent). But spending fell in Cigarettes &amp; tobacco and Alcoholic beverages (both down 2.2 per cent) and Electricity, gas and fuel (down by 2.0 per cent).
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 Industry sectors: Thirteen of the 19 industry sectors expanded in the June quarter. Rental, hiring and real estate services grew by 2.7 per cent, contributing 0.1 percentage points (pp) to growth in the quarter. Five other sectors contributed 0.1 percentage points to growth. The weakest sectors were Mining (down 3.0 per cent and removing 0.3pp from growth) and Agriculture, forestry and fishing (down 2.3 per cent).
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 Other points:
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Profit share falls. In seasonally adjusted terms, the ratio of profits to total factor income fell from 26.3 to 25.4 per cent in the June quarter. The wages share rose from 53.0 per cent to 53.4 per cent.
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 Household savings ratio rose. The household saving ratio lifted from 8.3 per cent to 8.8 per cent in seasonally adjusted terms in the June quarter. In trend terms household saving held steady at 8.6 per cent in the quarter.
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 Imports ease as a share of spending. The imports to sales ratio fell from 0.394 in the March quarter to 0.392 in the June quarter.
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<div class="column">The inventory to sales ratio rose from 0.627 in the March quarter to 0.643 in the June quarter. </div>
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The quarterly National Income, Expenditure and Product release (national accounts) from the Bureau of Statistics is the most complete assessment of Australia’s economic performance. Detailed estimates are provided on incomes (wages, profits), spending (such as household, dwelling investment and trade (exports and imports) and production (comparing industry performance). Other data includes household saving and the economic performance of States and Territories.
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<div class="column">The main use of the national accounts figures is as a historical record of economic performance. The information has little forward-looking value for currency, interest rate or share markets.</div>
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 What are the implications for interest rates and investors?
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 The national accounts data is backward looking. But the data is taken into account by the Reserve Bank, serving as a base for forecasts. The Reserve Bank uses six-month annualised growth figures to ascertain how the economy is travelling. And in that context growth looks more robust annualising at around 2.2 per cent.
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 Importantly business confidence and conditions remain healthy and should support a lift in activity over the latter part of 2015.
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 At present there is no rush to lift or cut interest rates although the risks lie with another rate cut given the patchiness in the economy. CommSec believes interest rates will remain unchanged over the rest of 2015. 
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<div class="column">Savanth Sebastian is an economist for CommSec. You can follow him on Twitter <a href="https://twitter.com/commsec" target="_blank">here</a>.</div>
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Australia's 24th consecutive year of growth: CommSec's Savanth Sebastian

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The Australian Government should formulate a national housing strategy that sets clear directions for Australia’s housing sector, according to not-for-profit group National Seniors Australia.
In the submission to the House of Representatives Standing Committee on Economics, National Seniors also recommended the examination of all types of housing and issues associated with access, adequacy, affordability and security by utilising findings from the Inquiry on Homeownership, the Inquiry on Affordable Housing, the Federation Review and the Tax Review. 
"Outright homeownership has been falling for people aged 55 and over (39.7% in 2001 to 32.1% in 2011)meaning that a greater number of older Australians are either paying off mortgages during retirement or moving from homeowner-occupier into alternative forms of accommodation.
"Other reasons for a fall in homeownership amongst older Australians include loss of paid employment and significant life events such as divorce or losing a partner. 
"Research suggests that insecurity within the private rental market amongst older Australians has led to a shift to public housing.The Australian Housing and Urban Research Institute (AHURI) has found that older public housing households are expected to increase from 87,940 in 2001 to 109,560 in 2016, an increase of 24 per cent.
"In the 85+ age group these are expected to increase by 155 per cent. 
"Furthermore, by 2026 the number of lower-income people aged 65 and over who are living in rental households (as homeownership falls) are projected to far exceed the supply capacity of the social housing system. 
"Census data from 2006 to 2011 shows a steady increase in the number of renters aged 55 and over in the private market."
National Seniors Australia recommends that the Australian Government, in collaboration with state and territory governments, examine tenancy regulations, rights and advice services.
The aim would be to deliver security and support for long-term renters; recognise that renting in the private market is a significant form of tenure for many Australians; and increase the attractiveness of this form of tenure for Australia’s long term housing needs. 
"Older renters experience significant anxiety linked to their security of rental tenure and many experience housing stress.Such housing stress is magnified due to rent increasing well above CPI and the insufficiency of Commonwealth Rent Assistance. 
"Renters face a number of disadvantages including forced moves which greatly contribute to instability. The frequency of moving between owners and renters in Australia is the highest in the OECD.
"The lack of long term (beyond 6-12 months) leases available to Australian renters increases instability.  
"Limiting the ability of property investors to terminate leases for ‘any reason with notice’ to a list of prescribed criteria, allowing pet ownership and minor alterations to the rental property would greatly enhance the lifestyle available to renters.  
"Improving the stability and security of tenure for a renter would provide them with the ability to receive similar non-financial benefits available to home owners.
"Creating greater equity in the Australian housing market would reduce the desire to become a homeowner, subsequently reducing the demand which is currently driving high housing prices in the market. 
"National Seniors recommends that the government investigate policies that will address barriers to downsizing (or 'rightsizing') for older Australians, for example, a national ‘rightsizing’ program. 
"Older Australians face barriers to relocating including: the inability to find value for money, stamp duty, moving costs, lack of suitable housing in familiar surroundings with easy access to required amenities, and impacts of selling the home on Age Pension eligibility. 
"These barriers also decrease capacity for older Australians to access equity in their home to assist with living costs during retirement. 
"Proceeds from the sale of the family home continue to remain exempt from the Age Pension assets test for up to 12 months, as long as the funds are intended to buy another home. 
"However, any interest earned on sale proceeds is counted under the income test, and, if a cheaper home is purchased, any surplus cash is included in the Age Pension asset test. 
"Concerns regarding the proceeds of the sale of the home being subject to the Age Pension assets test discourage 20 per cent of all seniors, and 30 per cent of Age Pensioners from selling the home.
"In 2013 the then Labor government announced the Supporting Senior Australians—housing help for seniors pilot,to address some of the barriers to downsizing that older Australians face. 
"The pilot exempted a portion of sale proceeds from the Age Pension asset test. However, it also applied restrictive conditions, including the requirement that a homeowner had to own their home for more than 25 years and quarantining the proceeds for ten years. 
"As an alternative National Seniors has called for the implementation of a ‘Rightsizing’ program that exempts up to $150,000 in proceeds from the sale of the home from the Age Pension income or asset test. 
"Excess sale funds could then go towards critical services, such as health costs, significantly reducing the burden on government-supported health systems. 
"The recent changes to the Age Pension asset test (legislated in June 2015) will provide an even greater deterrent for seniors to right-size. Reconsideration should be given to a program that allows seniors to right-size without the threat of future reductions to their Age Pension payments." 
National Seniors recommends that the states and territories provide concessional stamp duty to older Australians to encourage downsizing and maintenance of homeowner-occupier tenure. 
"A reduction in stamp duty would encourage older people to right-size their homes and improve quality of life, while also providing many younger Australians access to suitable family homes which would not otherwise be available."
 
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Seniors group calls for defined federal housing strategy

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A circular Glenelg penthouse with 360 degree views has been listed with price expectations between $1.95 million to $2.145 million.
With 360-degree views over the beach, the <a href="https://www.realestate.com.au/property-apartment-sa-glenelg-119374915" target="_blank" style="line-height: 1.3em;">84/760 Anzac Highway</a> property is 49 sqm and has been listed through Tim and Megan Thredgold at Toop &amp; Toop Real Estate.
The penthouse was last renovated in 2003, winning the Award of Merit at the Architecture Awards.
Designed by Stafford Architects, it was built by the Mossip Group with interior design by Maria Gianquitto.
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Circular Glenelg penthouse on the market

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Housing co-operatives should be seen as a priority for expansion to assist in addressing housing affordability, suggested The Business Council of Co-operatives and Mutuals (BCCM) to the inquiry into Home Ownership.
Housing co-operatives are key players in the range of responses needed to address Australia’s housing affordability crisis, affirmed BCCM. 
"A report by the Co-op has revealed that nearly eight in ten Australians aged between 19 and 29 are concerned about the level of mortgage debt they may face in their lifetime, and the prospect of ever being able to own a home.
"The current speculative model of housing ownership cannot deliver affordable housing for all. It is time to consider alternative ownership models and co-operative housing has proven to be a very significant opportunity for housing market reform. 
"Co-operative housing can either be provided as rental housing or based on a wide range of co- operative ownership models. In general, co-operative housing provides long term, secure and affordable housing for people on low to moderate incomes." 
Member participation directly reduces cooperative housing management costs, asserted BCCM in the submission to the House of Representatives Standing Committee on Economics. 
"Recent benchmarking demonstrates that co-operative housing is the most cost effective form of social housing program. Community Equity New South Wales (CENSW) has estimated that housing co- operatives produce savings over ten years per 1000 properties of $4.07 million in comparison with other social housing sectors.
"Seed funding needs to be provided to specialist housing co-operative centres that can function as a central resource agency for housing co-operative development. 
"The role of the resource agency would be to refine documentation for the various models, promote models to potential consumers and provide advice services to developing co-operatives. 
"Existing co-operative housing providers could be funded to expand their educative role. 
"Funding for this initiative could come from sources not limited to government but include stakeholders with an interest and commitment to the provision of affordable housing such as trade unions, customer owned banks, consumer-focused mutuals, consumer interest groups and member-owned super funds.  
"Rental co-operative programs could be further expanded by capital funds being made available to develop new stock or alternatively through the transfer of existing social housing stock. 
"A source for this funding could be through a combination of government seeding grants and commercial loans from financial institutions with an interest in developing new lending products in the housing loans market place. 
"Collaborative partnerships are also possible with co-operative and mutual capital investment partners ranging from financial mutuals (another form of Co-operative) or member-owned super funds to community development finance institutions. 
"Financial mutuals can also assist with affordable housing through the provision of affordable housing loans and a range of other consumer/member focused products. 
"The financial mutual sector is a significant player in the provision of affordable housing finance. It is driven by member needs and concern for the community and will continue to support affordable housing in all its forms. 
"Housing co-operatives are the quiet achievers in the housing sector. They have been highly successful in Australia and many other countries." 
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Co-operative housing consideration for reform

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GUEST OBSERVER
The Reserve Bank of Australia (RBA) is rapidly losing relevance to mortgage holders amid a myriad of changes to the nation's home loan landscape to tackle concerns about investor lending.
While the RBA maintains its cash rate at a record low of 2.0% – where it has been since May this year - tens of thousands of borrowers have already been hit with increases to their mortgage rates.
The decision of many lenders to raise interest rates for investment and interest only loans as well as revised borrowing conditions means the RBA's rate deliberations have become almost irrelevant for some borrowers.
While there is some competition in the market for owner-occupied loans at the moment due to the restrictions on investor loans, this pricing will be short lived with the pressure on the major banks to meet Australian Prudential Regulation Authority (APRA) measures by June next year. We will likely see rates increase for owner-occupied in the future.
The actions of the banks to increase rates in response to industry and regulatory desires to tackle the growth in investor lending due to concerns about booming Sydney and Melbourne property prices has changed the lending landscape.
Despite the RBA keeping its cash rate on hold, thousands of borrowers have been notified already by their lender that their interest rate will go up by as much as 49 basis points.
In the history of home loans it has never been more confusing for borrowers, who now need to be better informed than ever before.
Not only are rates for investors and people on interest only loans being targeted, there is a great variation now for all those looking to borrow money for investment purposes. Any investor who has purchased should revisit their approval as lending conditions have changed dramatically.
There have also been changes to loan servicing calculations, Loan to Value Ratio (LVR) requirements as well as the rental income needed to help service a loan.
John Kolenda is managing director of 1300HomeLoan and can be contacted <a href="https://www.1300homeloan.com.au" target="_blank">here</a>.
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RBA decisions losing relevance: John Kolenda

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.

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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.

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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.

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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.”

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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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