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The Customer Owned Banking Association (COBA) has outlined three specific areas of banking reform that would allow customer owned banks to serve the needs of more Australians in its submission to the House of Representatives Standing Committee on Economics Inquiry into Home Ownership.
The three areas are: improving banking competition, making it easier for Australians to save for a deposit, and consumer-empowering reform to mortgage brokers.
COBA has many concerns about the current arrangements in the mortgage broker market.
"A number of consumers incorrectly believe that mortgage brokers have access to the products of all lenders. They don’t. A significant number of banking institutions, including many from the customer owned sector, do not make use of broker channels. 
"Brokers are only required to recommend a loan that is ‘not unsuitable,’ a far cry from the best home loan for the customer, and possibly not even a particularly good product for the individual. 
"COBA is also concerned about the lack of disclosure regarding the level of vertical integration within the finance industry. According to the Mortgage and Finance Association of Australia, aggregation/broking groups that are owned by the big four banks, totally or substantially, comprise an estimated 40 per cent of mortgage brokers. 
"COBA notes the current arrangements adopted around mortgage brokers can create an incentive for them to optimistically assess loan serviceability (i.e. the capacity of the customer to meet regular repayments). 
"Often, a mortgage broker has an incentive to advise a customer to take out a larger loan, rather than the loan that is in the customer’s best interest. 
COBA suggests that the Economics Committee Inquiry into Home Ownership supports the FSI’s findings about regulators and competition. 
"The Financial System Inquiry (FSI), chaired by David Murray, has delivered a blueprint for a more competitive banking market, which would benefit home buyers through increased choice, greater bargaining power, downward pressure on loan pricing, and product innovation."
"A more competitive banking sector will deliver sustainable positive outcomes for all banking customers, including home loan customers. 
"Customer owned banking institutions were strong supporters of First Home Saver Accounts (FHSAs), and were disappointed to see this initiative abolished in 2014. While the product had some limitations and significantly underperformed in terms of uptake, COBA believes that a better targeted product could deliver significant benefits to aspiring FHBs [first home buyers]. 
COBA recommends that consideration be given to introducing a scheme designed to assist first home buyers to save a home deposit. 
Another recommendation is that the tax rate applied to deposits be reduced to place them on a more equitable tax footing relative to other investment options. 
"Stamp duty represents a significant additional upfront cost to home buyers, and is a further barrier standing between FHBs and their first home. While State and Territory governments do provide stamp duty relief in some circumstances, the eligibility requirements are often quite restrictive.
"COBA is also concerned about the level of concentration and vertical integration within the broker market. We believe consumers deserve clearer information so they know who they are dealing with, without having to wade through fine print to uncover ownership structures. 
"[COBA recommends] That the Committee consider reforms designed to improve transparency and the level of consumer education about mortgage brokers. 
"COBA believes that the implementation of these recommendations would improve the operation of the home finance market, and help customer owned banking institutions help more Australians. 
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Consumer-driven reform needed for mortgage brokers: Customer Owned Banking Association

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GUEST OBSERVER
Uncertainty in the macroeconomic environment still persists. Greece’s bail out and the volatility of the Chinese sharemarket are still ongoing points of concern. The higher volatility is leading many to continue to invest in the property market. 
Both the ANZ and Commonwealth banks have increased interest rates for property investors by 0.29%, which might be an early headwind to the Spring market. 
Melbourne's auction clearance rate dropped to its lowest point in three months. The adjustment in investment rates for investors may have been the contributing factor. Despite the clearance rate dropping, some of the results were still pushing to new heights. According to Secret Agent’s rolling quarters, both houses and townhouses gained further price increases for another quarter. 
Melbourne's median house price surpassed $700,000 for the first time, with Sydney now exceeding the $1,000,000 mark. 
Winter auction listings are 20% higher than they were back in 2014. This is a reflection of the confidence in the current market by sellers. There has been a lower than average number of listings for high quality property above the $1,500,000 mark. As a result, these quality offerings in inner Melbourne have received large premiums recently, with demand outperforming supply. This should ease a little as we approach Spring and a higher volume of quality homes come onto the market. 
The suburbs currently booming according to Secret Agent's scorecard data are Abbotsford, Brunswick, Brunswick East, Northcote and South Yarra. It is interesting to note that suburbs performing the best are those that offer the most value for money and are within close proximity to the CBD. The exception to this is property in South Yarra. 
 
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$1,605,000 4-6 Phoenix Lane, West Melbourne 
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$1,920,000 10 Bell Street, Fitzroy 
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$1,511,000 10 Millward Street, Brunswick 
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$2,820,000 11 Mitchell Street, Northcote 
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$1,098,000 21 O'Connor Street, Brunswick East 
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$2,650,000 34 Airlie Avenue, Prahran 
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$3,600,000 52 Millswyn Street, South Yarra 
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$1,625,000 66 Cooper Street, Essendon 
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$2,346,000 116 Canterbury Road, Middle Park 
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$1,420,000 151 Shaftesbury Parade, Thornbury 
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Ken Premtic works on acquisitions at Secret Agent and can be contacted <a href="https://secretagent.com.au/team/" target="_blank">here</a>.
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Melbourne market shrugs off winter freeze: Secret Agent

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Shelter WA recommends the Australian Government to appoint a Minister for Housing and Urban Development with the responsibility of coordinating decision-making across government. In their submission for the Inquiry into Home Ownership, Shelter WA recommended this coordination to be mirrored at the state level.
"Affordable housing is a structural issue, which needs to be addressed at a structural level through tax reform, employment growth and urban and regional development.
"While the affordability crisis in WA is less extreme than in some other areas of the country, housing remains unaffordable for many Western Australians. In WA, six times the median annual income is required to purchase a home at the median price (Bankwest Curtin Economics Centre, 2014). 
"This is up from 3.6 times the annual income which was required to purchase a dwelling in WA in 2001. Between 2006 and 2011, mortgage repayments in Perth increased by 54% and rents increased by 78%, while incomes only increased by 34% (Australians for Affordable Housing, 2012). 
"The household debt to income ratio has tripled over the past two decades (Bankwest Curtin Economics Centre, 2015). This includes mortgage debt as well as personal loans, credit cards and student loans."
In the submission to the House of Representatives Standing Committee on Economics, Shelter WA also suggested that a study should be conducted on the impact of negative gearing and the capital gains tax discount on home purchase affordability and on the rental market. 
Also, utilising the revenue obtained from potential reforms negative gearing and capital gains discounts to improve tax incentives for investment in new affordable rentals.
"Owners are entitled to a fair return on their investment, however government policies should only provide incentives to investors that contribute to affordable rental accommodation. 
"The ACT Government is phasing out stamp duties over the next twenty years, noting that this would support their agenda of making taxes ‘fairer, simpler and more efficient’ (ACT Government Treasury, 2014). 
"Shelter WA strongly supports the recommendations made in the Henry Review and the final report of the Senate Inquiry into Affordable Housing to abolish stamp duty and introduce a broad-based land tax over a transitional period. 
Another recommendation from Shelter WA is that State Governments continually review and reform planning processes to achieve a planning system that facilitates affordable housing. 
"Planning laws can encourage or inhibit the supply of new housing, including affordable home ownership. Initiatives to increase affordability include removing zoning and planning regulations, which prohibit smaller dwellings, and providing incentives to developers to provide affordable housing in new developments.
Shelter WA is concerned that the current system is not focused on the delivery of affordable housing.
"Recent changes to Development Assessment Panels (DAPs) made it easy for developers to bypass local government planning, through new opt-in thresholds. While this may streamline approval times, this process may actually be detrimental to achieving better affordable housing outcomes. 
"For instance, developers could use DAPs to side step a more stringent local government planning approvals process with affordable housing requirements. 
"Shelter WA is encouraged by the WA Department of Housing’s programs, which are aimed at making home ownership more accessible for low and moderate income households. These programs include shared equity schemes and Keystart loans, which report lower default rates than commercial lenders. 
"Since its inception, Keystart has assisted 85,000 Western Australians transition into home ownership. Since 2011, 1,029 families purchased a home through the SharedStart program, via co-ownership with the Housing Authority and Keystart home loans. 
"[Shelter WA] Support the continued development of shared equity programs, such as those administered by Keystart in WA, and other alternative home loan mechanisms. 
After conducting a joined survey with Aboriginal Legal Service of WA (ALSWA) in 2010, Shelter WA was able to identify 92% of respondents agreeing that 'stability and security, being settled' was a benefit of home ownership. The second most popular response was, 'freedom to make decisions about my home and who I live with'. 
"Respondents identified several risks to home ownership, with 87% selecting the primary drawback as 'interest rate rises lead to higher mortgage payments that people might not be able to afford'. 
"Additional comments included, 'restriction to lifestyle and stress about mortgage', 'Indigenous Business Australia (IBA) loans do not allow for refurbishment or additional loans to do the house up'and 'Process too long and restrictive'. 
"Qualitative research indicates that for some Indigenous Australians the positive social attributes of home ownership, such as being able to pass the house down in the family, are more important than the potential short-term financial benefits. 
"Intergenerational asset building for future generations and housing security are the primary motivators driving these aspirations. 
"For the benefits of home ownership to be fully realised, it is imperative that programs exist to educate Aboriginal peoples about home ownership and the obligations it entails. It is also essential that culturally appropriate support is available to assist Aboriginal peoples meet these obligations where necessary. 
"We cautioned against extending credit to people who do not have the means to make the necessary payments. Extending credit to low income people who cannot afford to service a loan of the size necessary to secure appropriate housing, without providing them with the tools and resources they need to repay the loan, sets them up for failure. 
"One of the major barriers to private home ownership in remote communities is the legal nature of community-title land. In our submission, Shelter WA and ALSWA did not support transferring community-title land to individual free hold land in order to promote individual home ownership. 
"Such transfers would dilute community-title, native title interests and communities’ rights to self- determination, and would remove the strength of land held in perpetuity for the benefit of the local peoples. 
"The recent announcement of the cessation of Federal and State funding to some remote communities in WA may have a significant impact on housing outcomes in those communities and surrounding areas. 
Shelter WA's final recommendation is that the Commonwealth and State and Territory Governments share joint responsibility for Aboriginal housing. 
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National housing call for new government housing development minister

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Renovator Cherie Barber has her 1890S Leichhardt investment property listed for September 5 auction.
The property listed by Cobden &amp; Hayson agent Ben Southwell is expected to challenge the suburb's current $3.05 million record.
The Victorian-era house is a restored five-bedroom home on 410 square metres which Barber bought in April 2008 for $950,000. It had been listed with $1,129,000 hopes at March 2008 auction.
Barber, who appears as an expert on Network 10s The Living Room, is founder of the workshop Renovating for Profit.
She added a 14-person spa in the central garden of <a href="https://www.realestate.com.au/property-house-nsw-leichhardt-120388361" target="_blank">93 Hill Street</a>.
There is also a self-contained apartment above the garage.
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Cherie Barber lists 1890s Leichhardt record setter

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Evolve Housing, a not-for-profit community housing provider and a manager of state owned social housing, addressed some key design principles for reform in the submission to the Inquiry into Home Ownership by the House of Representatives Standing Committee on Economics.
These key principles are as follows:
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<li>The provision of integrated, person-centred supports and incentives</li>
<li>Directing policies and programs to the full housing continuum - including the expansion of affordable housing stock</li>
<li>Increasing the community housing asset base through property transfers</li>
<li>Investing to expand affordable housing</li>
<li>Partnering with developers</li>
<li>Focus at state and local government levels on increasing the supply and sustainability of affordable housing</li>
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Evolve Housing explained in the submission that the people assisted by community housing providers have many other needs as a result of various forms of disadvantages. Lack of English language skills, lack of training and qualifications, and limitations imposed by disabilities are some of the reasons that increase the obstacle of affordable housing
"We urge the government to adopt two overarching design principles for housing reform. Enshrine the policy principle of offering housing assistance within a “Continuum of Housing” model and progressively update assistance options to facilitate the progress of residents, where applicable and appropriate, from income-linked social housing to Affordable Housing and then through to shared ownership and full home ownership. 
"Place particular emphasis on the policies, programs and funding incentives which act as supports and assistance for people on the pathway to housing independence and the associated social inclusion."
The community housing provider went on to address the suggested design principles for reform.
"The government must place immediate priority on funding and delivery models that will provide additional Affordable Housing stock, consistent with the proposed policy principle of offering housing assistance within a “Continuum of Housing” model and bridging the gap between income-linked social housing and the private rental market. 
"We also support proposals for investigating new sources of development. These include categorising Affordable and Social Housing as infrastructure and providing access to NSW Government Waratah Bonds for developing new supply, and investigating the potential use of Social Benefit Bonds or Housing Supply Bonds, and Social Impact Investment strategies, which have been used successfully elsewhere.  
"The government to ensure fair and responsible use of social housing across all of the states and territories and to assist transitions to affordable housing through the following actions:
"Review existing rent-setting arrangements for social housing to provide a clearer incentive to employment and to ensure that tenants are not materially disadvantaged if they move to Affordable Housing or private rental, or take up a job. 
"Seek an Australian Government review of arrangements that allow social housing tenants receiving benefits to cancel Centrelink rent deductions at any time. 
"Where a tenant’s rent is automatically deducted from their Centrelink benefits or Commonwealth Rent Assistance, the consent of their housing provider be required before the payment is reduced or cancelled (on the basis that such consent cannot be unreasonably withheld). 
"Implement a grace period for applicants on the social housing waiting list (or previous social housing tenants) who accept tenancy of an affordable property, allowing them to return to social housing within that grace period in specified circumstances. 
"Allow housing providers to require tenants and potential tenants to disclose personal financial information, such as taxation records, bank balances and visa information, where a housing provider reasonably believes it is necessary to ascertain the eligibility of the tenant for a housing benefit. In the event that tenants exceed eligible income thresholds or refuse to disclose the relevant information, a housing provider should be entitled to evict. 
"The imbalances between social housing and Affordable Housing include much greater security of tenure in social housing, incompatible arrangements for setting rent charges, and a lack of flexibility in Affordable Housing to assist tenants whose incomes rise or fall significantly. 
"The turnover of social housing is lower than it could be because some clients, who could afford to move out of social housing, do not do so.
"These challenges mean that people who need social housing miss out because accommodation is being tenanted by persons who do not in fact meet eligibility criteria. 
"Evolve Housing estimates that the above changes would have immediate impact and, based on our anecdotal experience, could lead to more than 10 per cent of existing social housing residents moving into other forms of housing."
Encouraging state governments to transfer larger scale existing public housing stock from the government and public sector to Community Housing Providers (CHP), is also suggested by Evolve Housing.
"Invest in expanding the portfolio of available Affordable Housing stock, including through innovative investment models and strong partnerships 
"Community Housing Providers to partner with developers to incorporate social and affordable housing into new mixed tenure developments. 
"Government to mandate livable housing design principles, from Living Housing Australia (LHA), in all new homes built by 2018. 
"We urge the government to work with state government to identify the areas where local government is able to strengthen the supply and sustainability of housing.
"Priority to be given to inclusion of affordable housing strategies in planning instruments, the potential for inclusionary zoning, use of developer contributions to fund affordable housing, and incentives to subsidise the yield gap between affordable and private market. 
Evolve housing has almost 4,300 social and affordable properties owned or under management, the experience from managing those led it to believe that the solution to easing the crisis to long-term sustainable housing is reform at individual, organizational and governmental levels.
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Design principles key in community housing reform

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Nine Entertainment Company today announced it has agreed to sell its Willoughby headquarters for $147.5 million.
Hong Kong-based property investor Euro Properties has purchased the site under a lease for a further three years after the sale is complete in 2017.
The sale is still subject to FIRB approval. The NSW Land and Environment Court has allowed a maximum number of apartments to 400 units, housed in five planned buildings which will be limited to a maximum height of eight storeys.
Nine Entertainment's Simon Kelly said the sale would allow the company to re-locate to new state of the art facilities.
The Willoughby site was the first in Australia to begin regular TV transmissions on September 16, 1956.
Nine noted the Willougby studio is the last original TV station in Sydney, with the ABC leaving Gore Hill in 2003 and Seven exiting Epping in 2009.
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Nine sells Willoughby site to Euro Properties

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The production rate of new housing will have to be ramped up to meet en expected housing deficit of a possible 200,000 homes by 2024.
In the submission to the House of Representatives Standing Committee on Economics, AECOM technical director Joe Langley noted the housing crisis in Sydney is the result of a group of factors that constrain land supply and housing production, adding part of the problem in Australia has to do with our inherent geographical and demographic conditions which restrict housing supply in certain areas and open up differences in regional housing affordability in others.
"Present governance and funding arrangements contribute to Sydney’s housing constraints by limiting the value that can be created by and captured from public transport projects."
Joe Langley points out how two international transport projects are delivered and funded that, in his opinion, addresses the housing constraints. "Improved governance arrangements within transport delivery authorities and the introduction value capture funding methods that tap into the value created by well-integrated transport and land use planning." 
"The Denver Union Station Project Authority (DUSPA) is an excellent example of a governance structure for a major transport project that embraces the concept of wider public and private sector engagement in decision-making. This US$550 million transit-oriented development is the centrepiece of Denver’s FasTRAKS program, a $5 billion transformation of Denver’s transport network. 
"Private sector partners, the Union Station Neighbourhood Company (USNC), were selected through a public tendering process that brought private commercial and residential development expertise and equity to the DUSPA board and the overall project.
"As a result, major transport projects such as DUSPA and FasTRAKS have enjoyed a high degree of public and political support, thereby avoiding the cancellation and financial failure of major transport projects as witnessed in the recent past in Queensland, Victoria and NSW."
Joe Langley brought up some important points to address housing supply shortages. These are recommendations according to recent research commissioned to the Property Council of Australia.
"More widespread release of urban land for medium density development (up to 6 stories), greater production of small lot housing opportunities in green field locations, a broad scale review of employment trends and new employment needs in conjunction with housing needs, and a new focus on the mechanisms of lot assembly to assist private developers in putting together development packages in preparation for future housing supply. 
"Part of the problem in Australia has to do with our inherent geographical and demographic conditions which restrict housing supply in certain areas and open up differences in regional housing affordability in others. 
"For example, Sydney is constrained by mountains to the west, the ocean to the east and national parks to the north and south, thereby pushing fringe development in a relatively narrow band to the northwest and southwest. 
"While the Property Council’s report paints a clear picture of the reasons behind the housing supply problem, it also points out that over half of the metropolitan Sydney councils surveyed either underperformed or grossly underperformed in meeting housing production targets set by the NSW Department of Planning and Environment between 2004 and 2014.
"Clearly, increasing the supply of housing is a key part of the solution, but Sydney’s ability to generate a “sustained increase” in the rate of dwelling approvals over the next decade can’t be relied upon given past performance. NSW will need to do things differently, and for a long time, if Sydney is to fix its housing affordability problem."
Moody’s Australian Housing Affordability Measure shows that Australian households with two income earners need to spend, on average, 27% of household income to make mortgage loan repayments.
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Possible housing deficit of 200,000 homes by 2024

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The minutes of the RBA August board meeting revealed a marginally more positive tone to the commentary. Given that the Board meeting pre-dates the release of the comprehensive Statement on Monetary Policy (SoMP), they don’t provide significantly new detail, but the tone suggests that interest rates are firmly on hold.
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Does this mean the Bank has moved to ‘neutral’? We don’t really think so. While the RBA is certainly wishing and hoping that it won’t have to cut rates again, over the next 18 months there is still a greater risk of a further cut in the cash rate than a hike. The points of interest in the minutes were:
The Board noted that downside risks to the outlook for China growth have receded. The improvement in housing markets and stimulatory policy steps taken were noted. Keep in mind though that the meeting pre-dates the release of the patch of very weak data last week (especially for exports) as well as the devaluation of the RMB. On the domestic economy, the minutes had a decidedly ‘glass half full’ feel about them, despite the fact that the forecasts presented to the board included a downgrade for GDP forecasts. They noted the improvement in labour market outcomes, and were relatively positive about consumption noting that “the most recent data on retail sales and liaison information were consistent with the momentum in consumption growth being sustained”.
The minutes also noted the improvement in business conditions, but highlighted the fact that the pick-up was concentrated in household and business services, which are generally less capital intensive than goods-related sectors.
On the currency, the minutes reiterated the points made by Governor Glenn Stevens in a recent speech and the SoMP, that the lower exchange rate was supporting net services exports
Board members discussed APRA’s measures targeting investor housing lending, but noted that it was too early to gauge the impact
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<div class="column">Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/felicity-emmett/5a/3ba/256" target="_blank">here</a>.</div>
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The RBA's 'glass half full' outlook: ANZ's Felicity Emmett

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An increase in population and income are two demand influencers on high dwelling rents and prices, according to the directors of Real Estate Research and Teaching for the UNSW Business School.
According to Nigel Stapledon's submission to the House of Representatives Standing Committee on Economics inquiry into Home Ownership, the rise in house prices it is not only happening in Australia, but all over the world. This is due to low interest across the world.
"In the period 1993-2003, population grew at a 1.1% annual pace, in the period 2003-13, it averaged 1.6%. At the margin, that extra 0.5% per annum is a very significant difference. This surge in population also changed expectations about future population growth, which in turn influenced expectations about future rent growth. If buyers expect the future rate of rent growth to be higher, that justifies higher prices." 
It is his belief that foreign buyers add to the pressure on prices, but the effect in the long term is not permanent.
"The broader point is that Australia is a major beneficiary of its open door to foreign capital. In the long term, Australia’s reputation as a secure, transparent place to invest is a positive. Apart from anything it lowers the cost of capital for governments, business and individuals. If we start imposing controls to help manage perceived short term problems, that will put that reputation at risk."
Taxation policy is not as important as the demand factors mentioned before. Nigel Stapledon says that a more efficient tax system is desirable but is not what affects housing.
"The real debate on the question of housing affordability is on the question of supply. There are a number of angles to this. 
"In economics, the margin is what matters. On the demand side, an increase in population growth rate from 1.1% to 1.6% per annum in the period 2003–13 caused rents to rise substantially. 
"Allowing for age composition effects, potential household formation lifted from 1.4% to 1.8%. That small marginal change mattered a lot. Because supply lagged in its response, most of the initial action was in higher rents, which worked to subdue demand (more young adults - potential new households – for example stayed at their parents’ home). 
"In period 2003-13, the stock of dwellings in Australia grew by an average 1.6% per annum – only slightly slower than potential household formation but the cumulative effect matters. With a lag, complicated by some big intervening events e.g. GFC (Global Financial Crisis), we are now seeing supply respond in a more substantial way. 
"In 2014 new completions increased the dwelling stock by 1.8%, and in 2015 and 2016 the pipeline of starts tells us that rate of growth will be running at a 2.0% pace. Bearing in mind that population growth has now slowed to a 1.4% pace (household formation below 1.6%), then clearly the demand-supply equation is shifting towards buyers/renters. The evidence of that is the deceleration in rent growth evident in 2014. It is the indicator to watch in 2015. 
"But imagine if the stock were to increase by more like 3% (double the normal) in 2015. That order of magnitude increase in supply would require lower rents/prices to encourage more households (those young adults staying at home) back into the market. Otherwise, there would be a lot of vacant new dwellings. 
"As the city’s population grows, if the green zone is unchanged, what urban economic theory tells us is that when the constraint becomes binding that the increase in demand will cause the price of land to rise. In response, buyers will choose smaller amounts of land consistent with the policy-makers’ desire for increased density. 
"While less land is used, which partially offsets the higher price per unit of land, it is only a partial offset and the price of housing rises. For the pre-existing stock of houses, the price rises and their owners (owner-occupiers and landlords) enjoy a capital gain. 
"The binding constraint will lead to pressure for some relaxation. To the extent that policy-makers relent and rezone some of the greenbelt land, the owners of that land will achieve significant capital gains. This leads to significant resources going into lobbying and a propensity for corruption. 
"The second policy option is to impose a development tax. This lifts the price of land and in response we again see smaller lots and increased density. If the tax is set at the right level, the same degree of increased density can be achieved as with quantitative controls. 
"One advantage of the development tax is that the development tax captures the capital gain which would be earned by owners of greenbelt land which is rezoned. A second advantage is that it keeps the market for land competitive. 
"I would note that constraints on higher density building in inner urban areas will also constrain supply and lead to higher rents/prices across the urban area. There are many such restrictions. For example the recent decision in NSW to impose a minimum size on apartments of 35 square metres will add to the cost of housing. 
"The cost of commuting (both in dollars and in time) is the most significant influence on the cost of land within cities. The higher are commuting costs from the urban fringe, the more valuable is living in the inner urban areas where commuting costs are low. 
"As a city grows, there is a need to add to the transport capacity (wider roads, more rail lines). If governments fail to expand the transport infrastructure, congestion rises and lifts commuter costs. 
"There is strong advocacy for public/social housing, which represents less than 3% of the housing stock, to be a much bigger part of the market. At its peak in 1971, public housing represented closer to 6% of total housing stock. 
"There is a place for public housing but do young Australians see it as the answer to their future housing needs. I suspect they all aspire to something better. It is seen as a safety net. 
"Aspirations aside, public housing is heavily subsidised. And as the cost of housing rises in a city, so too does the cost of subsidising public housing. It follow that policies which make the cost of private housing lower also lowers the cost to the taxpayer of providing any given amount of public housing."
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Aussies aspire to more than public housing

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According to the minutes of the Monetary Policy Meeting of the Reserve Bank Board, economic growth in Australia's major trading partners had remained close to its long-run average, although growth had eased a little in the June quarter.
The forecast for growth in 2015 and 2016 had been revised down slightly, but growth was expected to remain around its long-run average. The increase in global industrial production had slowed over the past year or so, particularly in the Asian region, and this had contributed to lower commodity prices. Members noted that, as a result, the forecast for Australia's terms of trade had been revised down since that presented at the May meeting. Globally, core inflation had been stable in year-ended terms over recent months at rates below the targets of most central banks. Monetary conditions had remained very accommodative.
In China, GDP growth had picked up in the June quarter to be 7 per cent in year-ended terms. However, growth in a range of other indicators of activity had moderated in the first half of 2015. The outlook for Chinese steel demand remained subdued. This had contributed to lower forecasts for iron ore prices, although they were expected to remain above levels seen earlier in the year. Members reviewed evidence that showed conditions in the residential property markets in China had improved further in recent months, but noted that this had not translated into a pick-up in residential property investment outside the largest cities. They observed that downside risks stemming from the weak property market and constraints on local government funding for infrastructure investment had receded somewhat, partly in response to policy measures designed to address these areas. The recent volatility in Chinese equity markets was not expected to have a significant direct effect on consumption, given the relatively limited direct exposure of households to equities.
Economic activity in Japan appeared to have been recovering gradually, but had yet to surpass the levels seen before the increase in the consumption tax in 2014. Nevertheless, the labour market remained relatively tight, wage growth had been higher than a year earlier and the Bank of Japan expected inflation to pick up to the 2 per cent target by around mid 2016. Across the rest of east Asia, output growth looked to have been below average in the June quarter, owing to weakness in both domestic demand and exports. In India, growth in industrial production had strengthened over the past year and a range of indicators pointed to further growth in investment.
In the United States, the economy had returned to moderate growth in the June quarter, following temporary weakness earlier in the year. Business investment was around average as a share of nominal GDP and recent indicators were consistent with above-trend growth in consumption in the period ahead. Members observed that lower oil prices should have a net positive effect on output growth in the United States, while recognising that the oil and gas sector had been adversely affected by the lower prices for its output and that households had saved some of the gains from lower fuel prices. Employment growth had strengthened in the June quarter and the unemployment rate had continued to trend lower, while wage growth had been surprisingly low and underlying inflation remained below the Federal Reserve's target.
The gradual recovery in the euro area had continued, supported by very accommodative monetary policy and low oil prices. Output growth appeared to have picked up in the first half of 2015 and unemployment rates in most countries continued to record modest falls. Members noted that there was considerable variation in outcomes across the euro area; sentiment had been rising in a number of countries but had declined in others, most notably Greece. Core inflation had stabilised in year-ended terms, but remained well below the target of the European Central Bank (ECB). Developments in Greece appeared to date to have had little effect on economic conditions or confidence in the region as a whole.
<h3>Domestic Economic Conditions</h3>
The Board's discussion of the domestic economy commenced with the observation that GDP growth over the next couple of years was expected to be slightly lower than forecast in May, although the revision was minor relative to the usual range of uncertainty. A downward revision to population growth had contributed to lower forecast growth in consumption and non-mining business investment. The forecasts for growth in public demand and business investment had been revised lower in light of new data. In contrast, the recent exchange rate depreciation had led to an upward revision to net exports. Aggregate growth was expected to remain moderate for a time before strengthening. Members recognised that the period of significant structural change for the Australian economy associated with the winding down of the mining investment boom would continue for some time.
Members noted that labour market conditions had been a little better than expected over the previous few months, although spare capacity still remained. The unemployment rate had been around 6 per cent in June, after having stabilised over the course of the past year, in contrast to earlier expectations that the unemployment rate would continue to drift higher. This stabilisation was consistent with both stronger-than-expected demand for labour and lower-than-expected population growth. Members discussed the role that low wage growth had played in the pick-up in the employment-to-population ratio over the past year. They noted that the ABS measure of firms' job vacancies was consistent with the unemployment rate remaining around current levels or even declining a little further in the months ahead. Other forward-looking indicators suggested moderate growth in employment in the near term.
The unemployment rate was expected to be a little lower than previously forecast, despite the revised growth profile, partly because the unemployment rate had been lower than expected in the June quarter, and partly because the revision to forecast aggregate demand had been broadly matched by a revision to forecast growth of the economy's productive capacity as a result of lower population growth. However, members noted that there would always be uncertainty about the balance between the growth of aggregate demand and supply.
Members noted that the key forces operating on the domestic economy had remained much as they had been for some time. Consumption growth had picked up a little since 2013 and the most recent data on retail sales and liaison information were consistent with the momentum in consumption growth being sustained. In addition, measures of consumer sentiment had remained around average levels. The forecast for consumption growth implied a further gradual decline in the saving ratio in an environment of continued low wage growth. The uncertainties around future consumption and saving decisions of households were discussed.
Housing market conditions had remained strong, supported by low interest rates. House price inflation continued to be strongest in Sydney and Melbourne, while price growth for apartments in these cities had been less rapid, consistent with increased construction of higher-density housing. Outside the two largest cities, housing price growth remained weak and prices had declined in some segments. Forward-looking indicators, such as building approvals and loan approvals for new dwellings, pointed to further strength in dwelling investment in coming quarters.
Housing credit growth had been stable over recent months at around 7 per cent on an annualised basis, while growth in credit to investors in housing had been steady at a bit above 10 per cent. Members noted that growth in credit to investors had been revised up as a result of a reclassification of one bank's loans, but that aggregate growth in housing credit had been unaffected. Members also noted that the Australian Prudential Regulation Authority (APRA) had announced an increase in the amount of regulatory capital the major banks and Macquarie Bank were required to hold for their residential mortgage exposures, to take effect in 2016. A number of banks had also announced increases in the standard variable rate for investor-related housing loans for new and existing borrowers of at least 25 basis points, and there had also been a tightening in lending conditions in this sector.
Non-mining business investment was expected to remain subdued for some time. Although little new information had been received since the previous meeting, survey measures of business conditions, confidence and capacity utilisation had been more positive. Members observed that survey measures of business conditions had been strongest for household and business services, which were also the sectors that had experienced the strongest employment growth over recent years. In contrast, business conditions and employment had been weaker in those sectors of the economy mainly involved in goods production and distribution. Members also noted that, on average, household services used significantly lower amounts of capital per worker than goods-related sectors and were not as well represented in the capital expenditure survey, which by itself implied a weaker forecast profile for non-mining business investment for 2015/16. Members acknowledged that there remained considerable uncertainty around the timing and strength of the recovery in non-mining business investment.
Export volumes appeared to have declined in the June quarter following a strong increase in the previous quarter. The weakness in resource exports partly reflected some temporary factors affecting coal and liquefied natural gas production, but a moderation in demand from China may have contributed to lower iron ore exports. Net service exports had made a strong contribution to output growth over the past year, supported by the earlier depreciation of the exchange rate.
Inflation in the June quarter had been broadly as expected and domestic inflationary pressures had remained well contained. The consumer price index had increased by 0.8 per cent in the June quarter (in seasonally adjusted terms) and by 1.5 per cent over the year. The quarterly outcome reflected a rebound in the price of fuel, although it was still around 10 per cent lower than a year earlier. The various measures suggested that underlying inflation was around ½ per cent in the June quarter and 2¼ per cent over the year.
Members noted that spare capacity in the labour market and the low growth of labour costs were reflected in low inflation for market services, while inflation in the cost of new dwellings had remained strong, particularly in Sydney. Domestic cost pressures were expected to remain contained over the forecast period. The prices of tradable items (excluding volatile items and tobacco) had declined modestly in the June quarter and over the preceding year. However, members observed that the recent depreciation of the Australian dollar would place further upward pressure on the final prices of tradable items over the next few years, which had led to a slight upward revision to the inflation forecast. Underlying inflation was expected to be around 2½ per cent over the forecast period, consistent with the inflation target.
<h3>Financial Markets</h3>
The Board's discussion of financial markets commenced with a focus on the US Federal Reserve's monetary policy. While policy was unchanged at the July meeting of the Federal Open Market Committee, recent commentary from Fed officials continued to suggest that policy tightening could start at the September meeting, whereas financial markets had only fully priced in a rate increase by December. Members noted that when the Fed actually delivered its first interest rate increase in nine years, there was likely to be a sizeable market impact notwithstanding how well telegraphed the change in policy had been. It was likely that financial market volatility would increase and the US dollar could appreciate further, including against the Australian dollar and a number of other currencies in Asia.
The US dollar had appreciated over the past month, particularly against the currencies of commodity exporters, including those of Australia as well as Canada and New Zealand, where the central banks had eased policy in July. The Australian dollar had depreciated by 5 per cent against the US dollar and by 4 per cent on a trade-weighted basis over the past month, taking the exchange rate to around its lowest level since 2009 on both measures. The New Zealand dollar had also depreciated sharply against the US dollar to a level that was around 15 per cent lower than in late April.
In sharp contrast, the Chinese renmimbi had continued to be little changed against the US dollar. Chinese international reserves had declined by around 7 per cent in recent quarters to help achieve stability against the US dollar in the face of an outflow of capital. Chinese equity markets remained volatile, despite measures introduced by the Chinese Government in early July that had steadied the Chinese equity market for a time. Large falls in Chinese equity prices had occurred again more recently, resulting in cumulative falls from recent peaks being back around 30 per cent, although equity prices remained 70 per cent higher than a year earlier.
Equity prices in the advanced economies had generally been little changed over the past month. This included the euro area, where equity prices had been more volatile but had recovered their earlier falls when Greece had moved closer to an agreement with its creditors. Australian equity prices had risen since the end of June.
Turning to developments in Greece, members noted that the Greek Government and its official sector creditors had reached an agreement to start negotiations on a new three-year bailout program. Much of the program would be used to refinance existing obligations as they fell due, as well as to recapitalise the Greek banks. The Eurogroup had arranged a €7 billion bridging loan to enable Greece to meet its short-term commitments, including clearing its arrears at the International Monetary Fund and repaying a maturing bond held by the ECB. Greek banks had reopened on 20 July following the ECB's decision to increase its emergency lending assistance, but capital controls remained in place.
Government bond yields in the major economies had mostly fallen over the past month, mainly fluctuating alongside market concerns about Greece. Bond yields in Australia had largely tracked those in the United States over the past month. With state issuance of bonds projected at modest levels, spreads and yields on state government debt remained low.
Australian financial market pricing indicated no likelihood of an easing of monetary policy at the present meeting.
<h3>Considerations for Monetary Policy</h3>
Global economic conditions were expected to continue to be supported by the lower level of oil prices and accommodative global financial conditions. Global industrial production growth had eased further this year, particularly in the Asian region, and this had contributed to lower commodity prices. Growth of Australia's major trading partners was expected to be around its long-run average over the next two years. Members observed that the downside risks to the outlook for Chinese growth identified over the past year had receded somewhat, although the Government's policy response to the recent volatility in Chinese equity markets had clouded the medium-term economic outlook. Uncertainties arising from the expected start of monetary policy tightening in the United States had moved into sharper focus.
Domestically, economic activity had generally been more positive over recent months. Very low interest rates were continuing to support strong growth in dwelling investment and consumption, and the further depreciation of the Australian dollar was expected to impart stimulus to the economy through stronger net exports. Although surveys of business investment intentions and non-residential building approvals suggested that non-mining business investment would remain subdued for some time, members noted that non-mining business profits had increased, business conditions were clearly above average and businesses had been hiring more labour, partly encouraged by very low wage growth. As a result, employment had risen as a share of the working age population and the unemployment rate had been relatively stable, in contrast to earlier expectations of a further increase. The recent data on inflation were largely as expected.
Members noted that output growth was expected to pick up gradually from its below-average pace over the past year to exceed 3 per cent in 2017. The forecast for the unemployment rate had been revised lower since the previous forecasts had been presented. The further depreciation of the Australian dollar had resulted in a slight upward revision to the forecast for inflation. Nonetheless, inflation was expected to remain consistent with the target over the forecast period given that domestic cost pressures were likely to remain well contained.
Credit was growing moderately overall, with growth in lending to the housing market broadly steady over recent months. House prices continued to rise strongly in Sydney and Melbourne, but trends had been more varied in a number of other cities. Members observed that recent responses by banks to the suite of measures implemented by APRA in respect of lending to investors in housing, including a tightening in lending conditions, would be expected to reduce the risks relating to the housing market, although it was too early to gauge their full effects.
Members noted that an accommodative monetary policy setting remained appropriate given the forecasts, while observing that the Australian economy had been adjusting to the shift in activity in the resources sector from the investment to the production phase. This shift had been accompanied by significant declines in key commodity prices and was being assisted by the depreciation of the exchange rate over recent months.
In light of these considerations, the Board judged that it was appropriate to leave the cash rate unchanged. New information about economic and financial conditions would continue to inform the Board's assessment of the outlook and determine whether the current stance of policy remained appropriate to foster sustainable growth and inflation consistent with target. 
<h3>The Decision</h3>
The Board decided to leave the cash rate unchanged at 2.0 per cent.
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Very low interest rates supporting home construction, investments: RBA

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

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

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

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

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

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

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

Lowe Living launches Jardin House in Camberwell

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

Jonathan Chancellor

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