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GUEST OBSERVER
Moves by regulators and banks to curb the growth in investment lending in response to spiralling Sydney and Melbourne property prices could cool the investment market nationwide.
The decision by lenders to raise interest rates on investor loans and other changes to tighten up investment lending was penalising investors.
Changes aimed at trying to simmer the property hot spots of Sydney and Melbourne would needlessly harm investors in other parts of Australia
Not only have there been interest rate rises for investors but also changes to loan servicing calculations and Loan to Value Ratio (LVR) requirements, with the Australian Prudential Regulation Authority (APRA) encouraging the crackdown.
Our economy is in a two speed cycle with the big property price increases focussed on Sydney and Melbourne.
Regulators and lenders need to be careful with how they deal with this as they risk hindering the market in others parts of the country where real estate is not booming.
The lending landscape is changing with a mixed bag of LVR requirements which are now causing a great deal of uncertainty in the market.
Investors in places such as Brisbane and Perth are being unfairly targeted over the property boom in Sydney and Melbourne.
 
Kent Leicester is managing director of Cigna Wealth and can be contacted <a href="https://www.cignawealth.com.au" target="_blank">here</a>.
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Investor lending changes could backfire: Cigna Wealth's Kent Leicester 

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GUEST OBSERVER
What types of communities do the best job of living with a minimal impact on the planet? I asked myself this question when I read a recent article which argued that even if everyone on Earth lived in an ecovillage we would still be using too many resources.
I am more optimistic — some ecovillages provide a much better blueprint than others.
As a 2013 study of 14 ecovillages by US political scientist Karen Litfin shows, ecovillages can be regarded as “pioneer species”. They show people how to improve their sustainability: the ecovillages Liftin studied used 10–50% fewer resources than their home-country averages and, being whole communities, were more influential than a single sustainable household.
Litfin’s assessment took in a wide range of factors – ecological, economic, even psychological – but one example of how ecovillages show the way forward is in power consumption.
Mainstream households tend to rely on national or regional supplies of gas or electricity, with no (or little) control over their sources. In places like Victoria, which has a very emissions-intensive power sector, this can make it difficult to make sustainable choices. However, ecovillage neighbours who have banded together to access renewable energy, say solar or wind power, can make off-grid environmental savings.
While there are financial (and other) barriers to setting up environmentally sound residential neighbourhoods, there are useful rules of thumb. In general, small is beautiful and sharing is efficient. One simply cannot fit as much “stuff” into a smaller house, and sharing accommodation often economises on consumption of goods and services.
Some ecovillages shame others in reducing their environmental footprint. Where ecovillages re-inhabit and renovate old buildings, they save on resources. A good example is the postcapitalist eco-industrial Calafou colony, northwest of Barcelona, which houses some 30 people in an old textile factory complex.
Members of another community that I have stayed at, Ganas in New York City, live in renovated residential buildings and operate several second-hand businesses at which residents work. Residents at Twin Oaks in Virginia, where I worked for three weeks, have a surprising level of collective sufficiency, with residents working on farming and making hammocks and tofu to sell, the proceeds of which are shared between the group.
Such experiments can be scaled up, settling residents in ex-commercial and ex-industrial premises — effectively shrinking cities by encouraging higher-density, more sustainable collective communities.
The global village
This feeds into the idea of “planned economic contraction” or “degrowth”, which as Samuel Alexander argued on The Conversation is necessary in order to live sustainably. But I don’t share his pessimism about the ability of ecovillages to show us a way towards this sustainable life.
An analysis of Findhorn ecovillage in Scotland showed that an average resident travels by air twice as much as an average Scot, yet their total travel and overall ecological footprint was half the Scottish and UK averages.
Residents of Findhorn and of another UK ecovillage, Beddington Zero Energy Development (BedZED), make significant savings in terms of car travel. It follows that just by avoiding air travel, these residents would have even more environmentally sound practices.
Managing without money?
Members of ecovillages such as Twin Oaks not only share “one purse”, but also complement their efforts at collective sufficiency with minimal use of money. (Avoiding money is part of the culture of squatters generally.) Members of Calafou put in money to the community on the basis of their individual capacity but share governance and benefits equally. Here social and environmental values dominate.
In contrast, money is the principle on which capitalism revolves. If we reduce consumption — and we will need to, to become sustainable — then production has to be reduced. But capitalist producers have no successful operating systems for shrinking. Most often, when consumption decreases it results in unemployment and austerity, rather than orderly degrowth.
Money pressures us to opt for more rather than less, or else risk poverty and powerlessness. Thus it applies a systemic pressure to expand. Growth is not simply a result of people’s greed – even not-for-profit cooperatives aim to create a monetary surplus. How would you run a business or your household using money income in a shrinking market? What would happen to prices and savings?
Many suggest a guaranteed minimum income, but the value of the currency will prove unstable in such conditions and, anyway, what really matters to us is what we can purchase with that income (meaning that prices matter).
Such questions lead us to the conclusion that strategies for degrowth must leap not only beyond capitalism but also beyond money. This is the strength of Litfin’s focus on ecology, community and consciousness, incorporating skills which we need to replace production for trade on the principle of money.
In the future, collectively sufficient ecovillages could operate environmentally efficiently on the basis of direct democracy and arrange production and exchange within the commons they lived off without the use of money. Instead, ecovillagers would make non-monetary exchanges, where necessary, on the basis of social and environmental values.
Thus we could reduce our footprint and stay within Earth’s capacity.
Anitra Nelson is associate professor, Centre for Urban Research at RMIT University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/anitra-nelson-6527" target="_blank">here</a>.
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Communities that can teach the world to live sustainably

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Businessman Malcolm Watkins, the director of Australian Finance Group, one of the country’s biggest mortgage brokers, has relisted his Hawthorn riverside holding.
The <a href="https://www.realestate.com.au/property-house-vic-hawthorn-120432701" target="_blank">12 Coppin Grove</a> property includes a historic former coach house which was reconfigured into a luxury family residence by previous owner, Melbourne Aquarium developer Peter O’Brien.
The 3300 square metre block comes with a permit for a second home, designed by Rob Mills for its views over the Yarra River and Richmond towards the CBD.
Fairfax Media report the site made headlines in 2012 when Matthew Guy, in his former role as Planning Minister, rejected an application by Peter O’Brien to replace the riverside backyard with three townhouses.
Dingle Partners agents Anton Wongtrakun, who listed the house last year prior to the new build permit, is now expecting more than $9 million plus.
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Hawthorn riverside $9 million plus listing

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Having sold on the Rose Bay harbourfront, the songwriting guitarist Harry Vanda and his wife Robyn have turned up in Double Bay for the village lifestyle.
Paying $7.05 million for historic Teralla, a grand Victorian home whose past owners have included merchant banker Mark McIvor and Professor Ron Penny. 
The Vanda's had been on the Rose Bay property since paying $667,500 in 1983, then commissioning the five-bedroom home design.
Alison Coopes had the listing which sold to Breakfast Point developer Stuart Rose for around $15 million.
His co-written Easybeats song, Friday on My Mind was voted the best Australian song of all time at the 2001 Australasian Performing Rights Association awards.
This article was first published in The Daily Telegraph.
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Harry Vanda buys in Double Bay

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Recruitment entrepreneur Guy Sigston - who established the Jobs Jobs Jobs website - and his wife, Simmone, are selling a historic East Melbourne terrace.
The 1886 freestanding terrace at <a href="https://www.realestate.com.au/property-house-vic-east+melbourne-120457617" target="_blank">10 Powlett Street</a> comes with five bedrooms. 
Kay &amp; Burton agent Michael Armstrong expects more than $3.7 million for the two storey terrace.
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East Melbourne terrace offering

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GUEST OBSERVER
The change to foreign ownership of Australian companies and critical infrastructure continues with the takeover offer for rail and ports operator Asciano from Brookfield Infrastructure Partners, a Bermuda-based company listed on the New York and Toronto stock exchanges.
The offer, which values Asciano at US$9 billion, is a part cash (75%) and part scrip (25%) bid. While it has the blessing of the Asciano board, the offer is yet to be approved by both the Australian Competition and Consumer Commission and Foreign Investment Review Board.
Australians appear relatively unconcerned about major transfers of ownership such as these - yet it is at odds with the assiduous strategies of larger economies such as the United States and China, to secure their supply chains.
Asciano was a spinoff of the Toll Group, formed in 2007. It has a rail division, Pacific National, acquired by Toll from the federal government-owned National Rail Corporation in 2002, and a port and logistics division, Patrick Terminals and Logistics.
Patrick is a long-established Australian company. It was originally started by the owner of coastal trading vessels before morphing into a number of other shipping and stevedoring companies. Although known for its role in the 1998 waterfront dispute, it has since become a leader in the stevedoring sector. It was acquired by Toll in 2006.
The Brookfield name is not completely unknown in Australia. The company already owns Brookfield Rail – a 5,500 km rail network in Western Australia – and the Dalrymple Bay Coal Terminal in Queensland.
Brookfield’s interest in Asciano is partly driven by a goal of positioning itself for the mooted sale of the federal government-owned Australian Rail Track Corporation, the owners of 8,500 kilometres of critical rail track across Australia.
If the Asciano sale goes ahead, approximately 95% of all Australian containerised imports and exports will be handled by foreign-owned companies including Dubai Ports World (based in the United Arab Emirates), Hutchinson Port Holdings (based in Hong Kong) and International Container Terminal Services Inc. (based in the Philippines), with only the Adelaide container terminal still in Australian hands.
On the other hand, a potential benefit for Australia is that Brookfield has indicated it will utilise Patrick’s world-leading expertise in automation across stevedoring operations it owns in other countries.
The general public may not be fully aware of the extent and ramifications of this shift in ownership in businesses critical to Australian trade. The main driver for overseas owners is to maximise return on the considerable investment they have made to acquire the assets, with in some instances, applying creative means of getting around Australian laws and regulations. For example, the recent Senate Committee inquiry into tax avoidance highlights just one of the issues, that of tax avoidance by overseas companies operating in Australia.
Many countries are grappling with how to manage the increase in foreign ownership, but in some cases public opposition has prevented a takeover going ahead. In 2006, a number of North American container terminals and logistic centres were up for sale but Dubai Ports World, one of the bidders whose ownership is concentrated in the Middle East, was ultimately excluded from the process due to the public’s fear that such a sale would compromise port security.
The US is also fiercely protective of its coastal shipping regime where all coastal cargo in North America has to be shipped by American owned and crewed vessels. This is in stark contrast to the current Australian coastal trading policy where increasing amounts of cargo on the Australian coast are being carried by foreign flagged and crewed vessels.
China is taking the security of their supply chains even further. Chinese companies, with the help of the government, are in the process of acquiring interests in ports and port-related businesses in the Indo-Pacific, East Africa and the Mediterranean along the shipping routes from China to Europe, the so-called “Maritime Silk Road”.
This project is part of the “One Belt, One Road” policy, which is an undertaking to secure China’s supply lines to and from Europe. It also includes a land-based route the “Silk Road Economic Belt”, which more or less runs along the centuries old former Silk Road and is developed to allow China’s landlocked western provinces to access the markets of Southeast Asia and the Middle East. The other aim of this initiative (backed by a US$40 billion fund) is to shape China’s regional periphery by exercising economic, cultural and political influence.
Australia could learn something from other economies – to carefully assess the long-term harms and benefits of allowing the sale of critical assets.
Peter van Duyn is maritime logistics expert, Institute for Supply Chain and Logistics at Victoria University and author for The Conversation. You can contact him <a href="https://theconversation.com/profiles/peter-van-duyn-22412" target="_blank">here.</a>
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Aussie ports in foreign hands could hurt security

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GUEST OBSERVER
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The value of new residential construction work completed fell nationally by 3% in seasonal terms for the June 2015 quarter according to the latest ABS Construction Work Done release. 
For the 12 months to June 30 however, the value of new residential construction work done had improved by 10.6% across the country largely due to more significant annual improvements in the value of residential work completed in New South Wales, Queensland, South Australia and Tasmania. 
The figures underscore the important role residential construction work is playing right now in supporting the broader Australian economy.
The activity underway is still very strong, however the drop over the quarter posted by most states could be signs of a slowing in commencements. 
This is something to watch as we can’t afford to see new construction levels weaken. Maintaining high activity is crucial to keep pace with housing demand, population growth and job creation. 
States such as Queensland and South Australia posted declines in the value of work done in the June quarter of 10.2% and 16.2% respectively which needs to be monitored over the forward updates. 
The value of residential construction work done in Queensland is the best it’s been since 2010, however the 2015 result still sits below the ten year annual average. 
The ABS data shows good annualised levels of activity is flowing through the residential industry and the industry is in the midst of a strong patch but supply side efficiencies will be needed to support this activity long term. 
Governments need to focus on supply side efficiencies in land release, improvements to development assessment and reform of inefficient taxes such as stamp duty to create prosperity, jobs and strong communities.
<a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.56.47%20PM.png" target="_blank">Click to enlarge</a>
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Nick Proud is residential executive director, Property Council of Australia and can be contacted<a href="https://www.propertyoz.com.au" target="_blank"> here</a>.
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Mid-year drop in residential construction value

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GUEST OBSERVER
Construction activity surprised to the high side, advancing by 1.6% in the June quarter. Expectations were for a decline (Westpac and market median –1.5%).
Private infrastructure, dominated by mining, was the source of surprise, jumping 10.2% in the quarter, centred on a 35% spike in WA.
Total construction work ex WA infrastructure was weak in the quarter, declining by 5.3%.
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The construction report reads more like an update from 2011, when the mining investment boom was in full swing. However, this spike in infrastructure work will not be sustained. Rather prospects are for sizeable falls ahead, even more so given this burst of work.
The positive, is that the construction sector (which accounts for around 15% of the economy) will add to growth in the June quarter 2015. This will provide a partial offset to the drag from net exports, which have swung from a positive contribution in Q1 of 0.5ppts to an estimated subtraction of –0.4ppts in Q2.
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Infrastructure work in WA jumped to $11.3bn in the quarter, a $2.9bn increase on Q1 or a rise of 35%.
Construction of the $10bn Roy Hill iron ore project and the $61bn Gorgon LNG project will have contributed to this spike. It appears that there has been a ramping up of work in an effort to make up for past delays. 
Elsewhere, it was a weak quarter for construction.
Public works fell further, down a sharp –8.4%qtr, to be 15% lower than a year ago. In the year ahead, public infrastructure is likely to improve as state governments begin work on new transport projects.
Commercial building was little changed, ahead of likely falls with approvals falling sharply in 2014, particularly in the mining states.
Private new residential building surprised, declining by 3.6% in the quarter. Although, this dip follows a 16% rise over the past year, including a near 8% increase in Q1. With approvals hitting fresh record highs early in 2015 new home building activity is set to strengthen in coming quarters.
Private home renovations strengthened, up 0.9% in the quarter to be 4% higher than a year ago. This is likely the beginnings of a modest upturn, following a period of softness, consistent with the upturn in the housing market more generally.
By state, Q2 construction work was: up sharply in WA, +25.5%qtr, 14%yr; broadly flat in NSW; edged lower in Victoria, -2.8%qtr, but was still up over the year, +7%; and fell further in Qld, -11%qtr, -32%yr.
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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June quarter construction activity surprising: Westpac's Andrew Hanlan

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Australia does not build enough new housing to support the growing population according to the Urban Development Institute of Australia with inadequate investment in urban infrastructure, high taxes and charges and excessive red tape on new developments driving the shortage in housing supply.
Whilst the overall rate of home ownership has only declined by a relatively modest 7%, from 71.3% of households in 1982 to 64.3% of households in 2011, according to UDIA, it masks the disproportionate decline experienced by younger generations, where rates of home ownership have collapsed. 
"The 25-34 and 35-34 year old demographics have seen the largest declines in the rate of home ownership, falling by 39% and 20% respectively. 
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In the submission to the inquiry into Home Ownership, UDIA says there is an urgent need for governments to take necessary action in order to resolve these issues and restore housing affordability.
"UDIA is strongly of the view that Australia has not built enough new dwellings to support population growth for many years, and that the country now suffers from a significant underlying shortage of homes, pushing up both rents and house prices. 
"Population growth must be planned for, with the necessary land, new housing and infrastructure to support population growth. Doing so will ensure that population growth is managed sustainably and for the benefit of the entire community. 
"Timely and sufficient provision of new urban infrastructure, such as transport, utilities, and community facilities is a particularly important factor for ensuring an adequate supply of new land. Infrastructure investment can act as a critical catalyst for development and new supply, by improving access and opening up new areas for urban growth."
UDIA made several recommendations to the House of Representatives Standing Committee on Economics such as provide additional funding for investment in new urban infrastructure, in order to unlock land for development. 
"The Commonwealth should work with state governments to prepare comprehensive strategic plans for future urban infrastructure, land-use planning, and land supply, to align with forecast population growth. 
"Facilitate non-traditional methods of funding infrastructure, to increase the level of funding available for infrastructure investment at both a federal and state level."
UDIA believes that costs associated with the Environment Protection and Biodiversity Conservation Act (EPBC Act) are a concern for the development industry.
"The Commonwealth should work with State Governments to undertake planning system reform to reduce delays and increase certainty in planning, zoning, assessment and approval systems, and increase the flexibility with which they operate. 
"UDIA supports the creation of a single, streamlined environmental approvals system to reduce the red tape associated with duplicated systems, without harming environmental outcomes. The Government should continue with its plan to streamline the environmental approval process to create a ‘one stop shop’. 
"The Commonwealth should stop attempts to restrict development around airports and airport corridors beyond the current and existing standards. 
"Stamp duty on property purchases should be phased out, and replaced with more efficient taxes, such as a broadening of the GST. 
"Governments should avoid revenue raising through the application of up front developer charges, and should seek to fund infrastructure through recurring charges directly related to specific infrastructure investment, over extended time frames. 
"The Commonwealth should cease plans to shift the cost of providing the National Broadband Network to new home buyers through up front connection, network and backhaul charges. 
"Governments should commit to broadening the base and reducing the rate of land tax regimes over a number of years, as an efficient way to raise revenue and reduce reliance on up front developer charges. 
"Governments should ensure land taxes apply per land holding, not on an aggregate basis, to in order promote large scale land development. 
"Land taxes should be levied on only the unimproved value of land, to avoid distorting disincentives to invest in improvements. 
"Exclude state and local government taxes and charges from GST calculations on land development, to reduce double taxation and improve tax system integrity. 
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New housing needed to support population: UDIA

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Prosper Australia does not believe in the home ownership problem being due to lack of housing supply, rather data has been wrongly analysed and a tax reform should be put in place.
"A good way to examine whether an adequate supply of housing exists is to compare the flow of new dwellings to new net population. Many analyses simply look at the relative or absolute change in dwelling stock, which is pointless without first considering changes in population."
Prosper Australia understands several factors have not been taken into consideration. For example, the total population measure is used, when only adults should be considered.
"An increase in the natural population through births doesn’t automatically necessitate new dwellings be built, though it may result in families upgrading to larger dwellings. 
"Renovations and extensions of existing dwellings are overlooked, but generate additional housing capacity. Many immigrants arrive in groups, initially requiring only one dwelling per family/shared household. 
"Building completions do not take into consideration dwellings that are demolished, condemned or held off the market. The slow rise in sole occupant households, divorce and/or childless couples (demographic change) may drive a long-run trend toward lower occupancy rates in general.
"The inadequacy of the housing shortage argument is apparent for the trend in the NSW ratio. Sydney, which dominates the state’s housing market, experienced a massive price boom between 1996 and 2004, yet over this period, one new dwelling was built for every 1.4 new people.  
"At the peak in 2004, the ratio decreased to an insane 0.2. In other states and territories, the ratio turned negative, indicating negative population growth in the face of positive dwelling construction, even while prices remained steady or even rising.
"Australia would be much better served if investor attention was refocussed onto genuine investment that added to our national capacity and strength rather than idle ticket-clipping. 
"In conclusion, there is no housing shortage as is commonly claimed, though a temporary shortage did emerge during the GFC. Australia is a mirror of other countries where high housing prices were also blamed on a shortage, always revealed, in hindsight, to be a chimera."
In the submission to the House of Representatives Standing Committee on Economics, Prosper Australia recommended the Government to introduce a one per cent Federal Land Tax, fully rebatable on State Land Tax paid. 
"State governments could adjust their tax rules and keep every dollar the Federal Land Tax raises, to the great benefit of all Australians. The Commonwealth would be entitled to argue this intervention is for sound economic reasons and dissipate the political fallout.  
"Few state taxes have such economically useful and dynamic properties, except State Land Tax, which rises and retreats with land price changes. This rare and valuable quality is masked by biennial land valuations. 
"Prosper recommends government revalue all land annually, by interpolation. This is quite straightforward with computer-assisted mass appraisal. The economic benefit of this automatic stabiliser function is profound in eras of rapidly rising or falling land prices. 
"Reducing wage and business taxation and increasing land tax would not necessarily lower land prices, given the offset of increased final wages, profits, and real and imputed rents. This macro reform – urged on government by every independent tax review in living memory – would solidly correct the price/income and price/rent ratios. 
"Transitional arrangements would need to be considered. A logical solution is to credit all landowners with the amount of stamp duty paid and then deduct the hypothetical land tax they would have paid since the date of purchase. This would address much of the fairness question."
Prosper Australia claims that stamp duty deters property transactions and innovation.
"It inhibits the transfer of property to higher value uses, resulting in an inefficient allocation of resources. 
"This transaction tax falls on both land and buildings, whereas land tax falls solely on the underlying land. Thus, stamp duty lifts the cost of and constrains construction and construction employment. 
"Stamp duty inhibits transactions. If removed, we would see more and better construction, lower rents, better matching of households to housing stock, a greater propensity to buy (on ease of exit), less traffic congestion, and a deeper, more active land market.
"Prosper commends the Henry Review recommendation to tax on a per square meter basis, rather than aggregating holdings. The flatter the rate schedule, the less significance this question holds. 
"The proposed property tax should fall solely and utterly on the underlying land. Taxing structures discourages construction; land cannot be discouraged, it simply is."
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Home ownership data wrongly analysed: Prosper Australia

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.

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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."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Jonathan Chancellor

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