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GUEST OBSERVATION
Everyday, prompted by pressure from the government, banks are changing their lending policies. What happens if, last week, your bank indicates you will get a loan approval, but this week they decline you?
Let’s face it, if the lending manager from the local branch declines you, they are hardly likely to want to send you to the competition. And, even if they were being generous and wanted to point you in the right direction, how would they know what their competitors’ lending policies were?
This is the benefit of using a Mortgage Broker. Brokers know which lenders will lend what, and to whom.
And, in a rapidly-changing world, really good brokers stay in close-touch with the banks and lenders so that they are ready for lending policy changes; that way clients don’t have the rug pulled from under them.
This is particularly the case with the reputable non-bank lenders who can match the Big Four for rates and products but are not facing the same government restrictions. 
When you are choosing which mortgage broker to go with, you may want to ask them key questions such as:
<ul>
<li>How often do they attend Professional Development sessions</li>
<li>How many lenders do they have on their panel</li>
<li>Which non-bank lenders are on their panel</li>
<li>Are they part of a wider group where fellow brokers share industry tips and updates</li>
<li>How long have group members been in the mortgage broking profession</li>
</ul>
 
Jenna Ford is partner, Chan &amp; Naylor Finance and can be contacted <a href="https://www.chan-naylor.com.au" target="_blank">here</a>.
 
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Is your home loan out of date? Jenna Ford

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GUEST OBSERVER
The timely indicators of local economic activity have generally been improving in recent months. Business conditions and confidence have been on a rising trend. Jobs growth has been strong and forward-looking indicators suggest that hiring intentions have been improving. Mining investment has been trending lower, but growth is rebalancing towards housing and the services sectors. As non-mining sectors are more labour-intensive than mining, this is creating jobs, even if it is not a big support for business investment. 
These local developments have helped to make the RBA more comfortable with its policy setting over the past month or so. The lower AUD is also now providing more support to Australia’s rebalancing act. The 15% fall in the AUD trade-weighted index over the past year means the local currency is now close to a level the RBA deems to be ‘fair value’. 
 However, offshore risks are brewing. Falls in China’s stock prices, adjustments to the RMB’s fixing mechanism and weaker Chinese indicators have seen increased market volatility as global investors become more concerned about China’s growth outlook. Commodity prices have fallen, with oil and copper prices declining to new six-year lows in recent weeks. Markets have also sold off on concerns about what a rise in the Federal Reserve’s policy rate before the end of the year could mean for emerging economy growth. 
 These global events are likely to be the focus of the RBA’s meeting next week. Importantly, though, the RBA’s recent statements have been flagging that an increase in market volatility was expected as the Fed got closer to lift-off. Weak commodity prices also do little to change the already weak outlook for new mining investment. 
In next week’s statement we expect the RBA to note that it is too early to know the impact of recent market volatility on global growth. We expect the RBA’s cash rate to be held steady at 2.00% next week and the statement to contain little guidance about the likely future direction of policy. 
<a href="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%2012.36.56%20PM.png" target="_blank">Click to enlarge</a>
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Local economic indicators have been positive 
Australia’s rebalancing act is running its course. A strong upswing in housing prices and residential construction is now combining with the next stage of the rebalancing act: an upswing in the services sectors. The clearest sign of the on-going rebalancing of growth is the upswing in jobs growth, which is being driven by employment in the household and business services sectors (Chart 1). As a result, the unemployment rate has stabilised at around 6-6.25% over the past year. 
Surveys of business conditions also show that growth is shifting away from the mining to non-mining sectors (Chart 2). We expect the services sector to be the next driver of growth (see Australia’s next growth driver: The rise of the services sector, 10 July 2015). Recent falls in the AUD are helping to support the rebalancing act. Indeed, the 15% fall in the AUD trade-weighted index over the past year has brought the currency to a level that is making the RBA more comfortable (see Downunder Digest: Lower AUD is helping Australia's rebalancing act, 21 August 2015). 
China’s economic indicators have weakened 
Although local conditions have been improving, timely indicators suggest that China’s growth has continued to slow. The Caixin manufacturing PMI fell to its lowest level since 2009 in August (Chart 3). 
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Matching the weakness in manufacturing activity has been a further slowdown in investment in the manufacturing industry (Chart 4). 
Although housing sales and prices have been lifting in recent months, this is yet to translate into a pick-up in housing investment, which is growing at its slowest pace since early 2009. 
Growth is getting support from better conditions in non-manufacturing industries and continued solid growth in infrastructure investment, but growth in overall fixed asset investment has slowed.
Weaker growth indicators combined with recent falls in stock prices and changes in the way the People’s Bank of China manages China’s currency have all contributed to a marked increase in financial market volatility recently (discussed further below). China’s authorities have responded to recent concerns about weaker growth with further cuts to interest rates and the reserve requirement ratio. More investment in infrastructure is also expected to be a key support for growth. For more on HSBC’s view on China see HSBC China Economics and FX Strategy, 25 August 2015.
China and an expected Fed move are driving market volatility 
Together, developments in China and concerns about the impact of a possible increase in the Federal Reserve’s policy rate, expected before the end of the year, have contributed to a significant increase in financial market volatility in recent weeks. Commodity prices have fallen particularly sharply, with copper and oil prices both falling to six-year lows (Chart 5). Iron ore prices have held up better, having fallen sharply earlier in the year. 
Global equity markets have also seen sharp falls and a substantial increase in volatility. Western equity markets have been volatile, as investors assess the possible impact on global growth of weaker growth in emerging economies, which are under pressure from both falling commodity prices and an expected rise in US interest rates. Asia’s markets have been particularly volatile, as concerns about China’s growth and the Federal Reserve weigh on the region (Chart 6). 
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The RBA’s tactics and commentary 
We expect the RBA’s meeting to be uneventful, with the central bank likely to remain comfortable that the economy is continuing to grow, that growth is creating sufficient jobs to keep the unemployment rate steady, and that the AUD is now at a level where it is helping to support the rebalancing of growth. The RBA is likely to acknowledge the recent increase in volatility in financial markets; however, the RBA is also to note that it is too early to determine the impact of these developments on the outlook for global growth. 
We remain of the view that the most likely course for Australia’s monetary policy is that the cash rate remains at its current level in coming quarters. This is particularly the case as the AUD is now providing more support to local growth than previously. However, it does seem likely that the recent developments, particularly the fall in commodity prices, do increase the downside risks to Australia’s growth and, therefore, increase the possibilities that further monetary policy easing may be needed. 
<a href="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%2012.42.16%20PM.png" target="_blank">Click to enlarge</a>
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<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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Housing investment growing slowest since early 2009: HSBC's Paul Bloxham

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The intended matrimonial home of celebrity trainer Michelle Bridges and her former husband Bill Moore has been listed with non-waterfront record setting $4.5 million ambitions after its two year makeover.
It is among the Sydney's spring September inner west auction offerings.
The couple bought the sandstone home at 10 Wharf Road in Birchgrove for $2.35 million in 2011 with the renovations said to have cost as much again.
The expensive fitout comes with bespoke Statuarietto marble fireplaces.
The furniture has been styled by Coco Republic ahead of its <a href="https://www.ch.com.au/100P10126" target="_blank">scheduled Cobden &amp; Hayson September 19 auction</a>. The art has come from Artbank.
The builders only recently completed the renovation last month of the three bedroom 1870s home.
The Biggest Loser fitness trainers Michelle Bridges and Steve "Commando" Willis are set to stay in their Potts Point apartment following the birth of their first child.
It was early 2013 when the then Biggest Loser star and her husband, Bill Moore decided to split after nine years of marriage, while keeping their multimillion-dollar fitness empire intact, with Bill retaining his role as business manager.
The couple had met at Moore's Balmain gym and then renovated their Rozelle house, where Moore continues to reside.
Birchgrove's highest non-waterfront was a $4.1 million sale in 2013 on Rose Street.
This article was first published in the Daily Telegraph.
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Michelle Bridges lists Birchgrove sandstone after two year makeover

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GUEST OBSERVER
Housing affordability is more than just house prices. It also includes ready access to public transport, schools, good road networks, and of course access to all the basic utilities. However, local governments don’t have the money to build all the infrastructure new housing estates need.
So developer charges were introduced as a “user pays” method of funding new urban infrastructure. These charges are levied on property developers by local authorities at the time of planning approval. Some think these costs are passed back to the original land owner by way of lower land prices.
But property developers claim these charges are instead added on to new house prices, with a negative impact to housing affordability. When new house prices increase, existing house prices are also dragged up, extending the housing affordability issue throughout the community.
However, new research by QUT has uncovered evidence that these costs are not merely passed on to homebuyers, but are passed on at significantly over-inflated rates.
In an Australian first, the study empirically examines the impact of developer charges on housing affordability, providing evidence that developer charges are passed on to all homebuyers in the community. So while policy makers think they are charging developers for the provision of infrastructure in new communities, the cost is really being borne by all homebuyers.
<h2>The research</h2>
This research applied a hedonic house price model to 4,699 new and 25,053 existing house sales in Brisbane from 2005 to 2011. Using diverse data sets on both housing supply and demand items, it tested the impact developer charges had on both new and existing house prices over this time.
This study has provided the first Australian evidence that developer charges are passed onto home buyers. But these charges aren’t passed on in a dollar-for-dollar fashion. Consistent with international evidence, there is evidence that suggests these charges are inflated on both new and existing homes by around 400%.
What does that mean? It means that $10,000 of developer charge adds about $40,000 to the price of both new and existing houses.
In Queensland, where developer charges are around $28,000 per new house, this one fee alone could be responsible for over $110,000 of the house price. Over the term of a 30 year mortgage, this could be costing homebuyers in excess of $338,000 or almost $1,000 per month extra mortgage payments.
This is not to say developers are profiteering. The competitive nature of the development industry ensures developer margins are kept within a range reflective of the risky nature of property development. Developer fees are a supply side cost that often aren’t locked in until many years after the land is first bought for subdivision.
Demand factors, such as low interest rates and limited supply force up prices and land owners quickly adjust their expectations, asking more for the undeveloped land that will help with supply. Holding costs, time delays, limited supply of serviced land and imperfect data and models are all thought to contribute to this problem.
<h2>All buyers pay</h2>
This price inflation affects new home buyers and also buyers of existing homes, resulting in increased mortgage repayments of close to $1,000 per month in Australia.
Thus this inefficient developer “tax” isn’t being paid by developers at all. It is being paid by all home buyers across the community, even though the actual infrastructure built only services the new developments.
These findings suggest that developer charges are not only an inefficient tax, but are a significant contributor to increasing house prices and reduced housing affordability.
It is inefficient and inequitable to expect the community to pay four times the cost of infrastructure that services only new housing estates.
In the current environment of resource constraints and declining housing affordability, it’s now time other infrastructure funding models were considered by policy makers.
 
Lyndall Bryant is lecturer in Property Economics at Queensland University of Technology and author for The Conversation. You can contact her <a href="https://theconversation.com/profiles/lyndall-bryant-178983" target="_blank">here</a>.
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Inefficient tax slugs all homebuyers

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Budgewoi on the New South Wales central coast is Australia’s worst performing suburb when it comes to missing housing loan repayments, according to research published yesterday.
The latest Australian Mortgage Delinquency by Postcode report by Fitch Ratings found Tasmania is the worst performing state for mortgage repayments, replacing Queensland with an average delinquency rate of 1.33%.
Overall, the average mortgage default rate in Australia hovered at around 0.99% for the month ending March, which is up 9% since September 2014.
Of the top 20 worst-performing postcodes, the majority are in metropolitan regions.
However, metropolitan suburbs performed better on average than their rural and regional counterparts.
This is particularly the case for states such as Western Australia, Queensland and the Northern Territory due to the downturn in the mining industry.
James Zanesi, director of Fitch Ratings Australia, told SmartCompany that national arrears rates are currently very low.
“They are extremely low and probably due to the current situation Australia is in,” Zanesi says.
“This means very low interest rates, unemployment at an acceptable level and the economy which is really strong and house process as well. So we have a situation where arrears can’t improve that much as you’ll always have mortgage defaults due to divorces … and other unexpected circumstances.”
Zanesi points out while Queensland has been the worst-performing state for mortgage repayments since about 2012, it is interesting to see Tasmania take out the top spot.
“This is reflecting the high unemployment rate and the slow housing market,” he says.
“The housing market in Tasmania has been overall the same during the last three years and especially if you look over the past decade.”
Looking forward, Zanesi says if house prices start to slow down there will be certain areas that will suffer more.
“This means areas such as the west of Sydney or others hit by strong house prices will start to have an increase in arrears,” he says.
Here are the 20 worst performing suburbs when it comes to mortgage repayments:
 
<ol>
<li>Budgewoi NSW</li>
<li>Kingston QLD</li>
<li>Petrie QLD</li>
<li>Corio VIC</li>
<li>Greenacre NSW</li>
<li>Melton VIC</li>
<li>Hampton Park VIC</li>
<li>Laidley QLD</li>
<li>Salisbury SA</li>
<li>Ballajura WA</li>
<li>Goodwood TAS</li>
<li>Jimboomba QLD</li>
<li>Green Valley NSW</li>
<li>Bundamba QLD</li>
<li>Aldinga SA</li>
<li>Parafield Gardens SA</li>
<li>Mount Isa QLD</li>
<li>Claremont TAS</li>
<li>Hoxton Park NSW</li>
<li>Lalor VIC</li>
</ol>
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Budgewoi, the worst performing home loan suburb

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Property listings across Sydney are lower than last year, with the recent rush to the red hot auction market helping clear the decks.
There have been around 8000 new listings over the past month, with total Sydney offerings currently at around 19,000. 
Despite less population, Melbourne and Perth have more properties on sale as stock levels in Sydney are 1.5% lower than a year ago, according to CoreLogic RP Data.
A pre-spring spring listings spurt showed up in higher than usual auction volumes, but then seemingly prompted a dip in the auction success rate. Sydney’s clearance rate was down from 77.3% to 76.2% last week. 
Around 3700 Saturday onsite auctions were marketed across Sydney during August, which include 800 tomorrow.
In August 2014 the Saturday numbers were around 2250 auctions, a 65% jump in weekend onsite activity year on year.
There was also another five Saturday August in 2013 when just 2000 auctions were held.
Auctions are increasingly a popular way of selling a residential property, new research from CoreLogic suggests.
Over the last financial year some 25% of all properties advertised for sale were taken to auction across Australia’s capital cities, with Melbourne, Sydney and Canberra leading the way.
There were 380,000 dwellings advertised for sale across Australia’s capital cities over the 2014/2015 financial year, of which 84,000 were marketed as auction sales.
The proportion of auction sales has been rising since the 2008/2009 financial year when auctions comprised 16% of all dwellings listed for sale.
CoreLogic RP Data research director Tim Lawless said the rise in the proportion of residential properties taken to auction should come as no surprise given market demand has been high and buyers are highly competitive.
Melbourne is still the city where auctions are the most popular method with some 39% of all Melbourne's residential property listings taken to auction.
Sydney sits not far behind at 38%.
Queens Park tops the list with 59 out of 60 house listings being taken to auction over the period under analysis. 
Queens Park has just the one weekend scheduled auction with Belle agent Edward Brown.
Around $2.1 million is being sought for the freestanding two bedroom property at 140 Denison Street.
"It is being offered to the market for the first time in over four decades," Edward Brown said.
Sydney's busiest auction suburb tomorrow is Liverpool followed by Blacktown and Surry Hills.
Liverpool's auction including four newly constructed homes on Apex Street through Darren Smith, Community First Liverpool.
This article was first published in The Daily Telegraph
 
 
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Sydney auction numbers rise, but listings reduce

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The Marist Brothers religious order have sold 7A The Serpentine, Bilgola.
The property is now being offered as it is now seldom used.
The property was purchased in the 1950s by the Marist Fathers as a holiday destination.
Mark Griffin at Belle Property Avalon was looking for $3 million plus.
No sale price has been revealed, but it is understood to be around $3.68 million.
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Marist Brothers sell Bilgola retreat 

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Goodman Group's head of equities Nick Kurtis has sold his Mosman residence at around its $9.5 million price tag.
The contemporary home was on the market for about four weeks through John Melville and Michael Coombs at McGrath Estate Agents.
It was a 2012 Corben Architects designed home. The Australian Financial Review says Kurtis is to build another new home. 
Nick Kurtis joined Goodman in 2000.
The contemporary home at <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-mosman-nsw-2088/262691" target="_blank">37 Redan Street </a>on the Balmoral slopes was built on its 610 sqm block bought for $4.9 million in 2007.
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Goodman's Nick Kurtis sells Mosman home

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To improve housing affordability the Property Council of Australia has suggested reform covering planning systems, infrastructure provision, and reforms to state and federal taxation arrangements in its submission to the House of Representatives Standing Committee on Economics.
#1 Zone more land for housing 
"Our capital cities need more inner city density, middle ring renewal, as well as new land releases. 
"Reforms should provide capacity within city strategies and local statutory plans to accommodate a growing population. Ensure clear citywide and local housing targets are in place, reported on and met. 
"Support planning strategies to place homes nearer to the opportunities and services within the community. Clearly acknowledge the importance of retirement living facilities, and facilitate their development." 
#2 Simpler planning, faster processes
"New developments are hampered by complex building rules and slow assessment processes that just force up base prices. 
"The cost of compliance with multiple layers of planning development legislation and regulation is now a significant component of the cost of housing. 
"These include, but are not limited to the Building Code of Australia, various state planning instruments, local council planning requirements, specific design guidelines for apartments and other targeted instruments. 
"In some instances the requirements of a single measure in one of these instruments can add $10,000 per dwelling in additional costs."
#3 Tax the production of new housing less 
"The production of housing is a highly taxed activity. Stamp duties, land taxes, GST and large development levies can make up as much as 26% of the total cost of a finished house, and up to 21% of the total cost of a finished apartment. To make housing more affordable we need to tax the production of housing less. 
"Property in Australia is taxed right throughout the supply chain, from land acquisition, to building, to market transactions, all of which are passed through to the end consumer. 
"Treasury’s own analysis highlights how damaging stamp duty is, with a 73 per cent loss of economic livelihood for every dollar taxed. 
"On that basis, we believe it is time for the Commonwealth to lead reform on the abolition of stamp duty, a reform that would act as a catalyst for stronger economic growth and activity. 
"Foreign investment provides valuable capital for new housing development and should not be the subject of punitive charges that act as a tariff on capital flows, as the government is proposing with its excessive fees for foreign investment applications. 
"The Henry Tax Review acknowledged that any changes to the tax treatment of investment properties should only be implemented after other housing supply constraints are resolved. 
"The most commonly discussed alternative to the current arrangements is to quarantine net losses to the investment property – that is, investors are still able to get deductions up to the rental income and carry forward any excess loss against future income (including capital gains). 
"Any wholesale removal of negative gearing or the CGT discount that discriminates against property would significantly harm investment, diminish rental supply and ensure that in the short to medium term, rents and property prices will increase. 
"The key to making homes more affordable is to increase the supply of new housing stock to better meet demand, and any move to restrict the current tax arrangements would be disastrous, particularly for rental supply." 
#4 Link housing and jobs 
"Strategic delivery of new road and rail links will bring more housing closer to jobs, which in turn improves people’s lives, opens up economic opportunities and deepens labour markets for business. 
"Land use planning, including that for housing, should be done in partnership with infrastructure planning and economic development policies. 
"Infrastructure provision has not kept pace with growth, particularly in our larger cities, and the result is long commute times, lack of employment opportunities within a reasonable proximity to housing development, increased pressure on services in certain areas, and a general decline in living standards for a growing proportion of the population."
"The provision of infrastructure that links housing to employment and improves the economic productivity of our cities will bring benefits not only for the economy, but to housing affordability and accessibility for more Australians."
#5 Incentivise reform 
"The Federal Government should consider kick-starting reform to bolster housing affordability by reaching a new competition agreement with the states, with incentive payments for achieving best practice planning reform. 
"Reform should recognise that comprehensive planning reform would deliver significant productivity dividends to the economy. This would in turn boost tax revenues, which can be used to fund reform incentives. 
"Take the form of a written agreement between the commonwealth and the states and territories, whereby the federal government agrees to provide incentive payments on the achievement of specific planning reform objectives and outcomes."
In the submission to the House of Representatives Standing Committee on Economics, the Property Council of Australia also said that there is opportunities for reform on matters like unlocking home equity for seniors, community housing strategy, the National Rental Affordability Scheme (NRAS), the National Disability Insurance Scheme and national data supply repository.
 
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Capital city middle ring renewal needed: Property Council

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Removing taxes and allowing first home buyers to use money from their super are a few of the changes the ABN Group finds necessary to improve home ownership in Australia, specially in Western Australia and Victoria.
In the submission to the House of Representatives Standing Committee on Economics, ABN Group said based on independent economic modelling commissioned by the HIA, housing affordability could be improved with the implementation of reforms which remove inefficient taxes that specifically effect housing, such as stamp duty on conveyance, and replace the government revenue with more efficient taxes.
"In the process of selling a property, stamp duty can be paid multiple times: at the sale of land to developer; from the developer to the builder and the sale of the house and land package to purchaser. The cost of this 'triple taxation' is reflected in the final purchase price paid by the homebuyer.
"Land tax incurred during the development phase of housing significantly adds to the holding costs of developers. In WA land tax has increased 30 per cent over the last two years. This additional cost further adds to affordability. 
"The ABN Group also strongly believes that payroll tax limits business and employment growth and development in this state [WA]. Although the ERA report labels payroll tax an efficient tax, ABN believe any review of state taxes must include a review of the impact of payroll tax, with a view to reducing the Government's reliance on this source of income.
"The single greatest hurdle to home ownership for first home buyers is overcoming the 'deposit gap'. The ABN Group believes that considerations should be made to help more first home buyers to save for a house deposit in Australia.
The ABN Group supports the WA Keystart program, which has funded 20% of all first home buyers. ABN believes that Victoria could benefit from a similar program.
ABN also suggests that a senior housing minister is appointed at state and federal level.
"Given the status of a senior cabinet member and their scope to drive change these appointments would facilitate housing policy outcomes for significant, yet neglected issues, such as housing affordability.
"This coordinated approach at both state and federal levels would remove current blockages and create efficiencies in providing home ownership solutions in Australia.
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First home buyers need early access to super: ABN Group

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.

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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."

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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.

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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.

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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."

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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.

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“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.

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Jonathan Chancellor

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