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The upbeat assessment of the Australian economy by RBA governor Glenn Stevens in his <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712">“Lucky Country” speech in Sydney yesterday</a> has further dimmed chances of rates being cut in August, according to both Commsec and ANZ.
Commsec chief economist Craig James says the governor’s speech was designed to “outline the facts rather than fallacies about Australia’s economic performance and the potential to handle future shocks”.
“The Reserve Bank governor reportedly noted that policy settings are about right. While that doesn’t preclude a rate cut in August, the factors would need to present, such as further instability in Europe and a low domestic inflation result."
“CommSec is still pencilling in a rate cut over the next few months,” James says.
A similar assessment of the tone of the speech was made by ANZ Research in its latest economic update.
“RBA governor Glenn Stevens today delivered a fairly upbeat assessment of the Australian economy in his speech entitled ‘The Lucky Country’,” says Craig Michaels and Dylan Eades of ANZ Research.
Michaels and Eades note Stevens' argument that Australia has made its own luck in delivering a “remarkably good” performance against a very turbulent international background, Stevens' contention that concerns underlying weaknesses in the Australian economy are overstated; and that even if downside risks do materialise, Australia is well placed to manage them.
“Importantly, the tone of the speech suggests that the hurdle for significant interest rate cuts is much higher than markets are currently pricing,” they say.
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August rate cut hopes dim further following upbeat Glenn Stevens "Lucky Country" speech: Commsec, ANZ

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Twitter was unusually abuzz with positivity following Glenn Stevens' speech today about Australia’s status as “The Lucky Country”.
Clearly delighted with the tone and content of Steven’s address, Rismark and Yellow Brick Road’s Christopher Joye (<a href="https://twitter.com/cjoye">@cjoye</a>) tweeted:
<img src="/images/stories/2012/chrisjoye.jpg" alt="chrisjoye" height="77" width="487">
Joye was joined in his praise of the RBA governor by his frequent Twitter sparring partner, Stephen "The Kouk" Koukoulas (<a href="https://twitter.com/TheKouk">@TheKouk</a>) – former Gillard economic adviser and soon-to-be economic scribe for Alan Kohler’s Business Spectator website, who used an unusual adjective (perhaps tongue-in-cheek) to describe his appreciation of the speech:
<img src="/images/stories/2012/stephenkouk.jpg" alt="stephenkouk" height="79" width="495"><a target="_blank" href="https://t.co/BQNKcxsk"></a>
Self-interested Federal Treasurer Wayne Swan (<a href="https://twitter.com/SwannyDPM">@SwannyDPM</a>) was so excited about the Stevens' speech, he tweeted not once, but twice to his 20,687 followers, beginning with an attack on the “doomsayers":
<img src="/images/stories/2012/wayneswan1.jpg" alt="wayneswan1" height="111" width="497">
Followed by:
<img src="/images/stories/2012/wayneswan2.jpg" alt="wayneswan2" height="96" width="501">
It was left to The Age’s Chris Zappone (<a href="https://twitter.com/chrizap">@chrizap</a>) to restore some bearish balance to the debate. Not surprisingly perhaps, given Melbourne has been the last (and most recent) city to experience the house price downturn, he tweeted:
<img src="/images/stories/2012/chriszappone.jpg" alt="chriszappone" height="93" width="491"><a href="https://twitter.com/search/%23in"></a>
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Tweet of the day: Glenn Stevens' “lovely” speech gets thumbs up

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The US housing market is now an “outlier” when it comes to making international comparisons, says RBA governor Glenn Stevens, who appears to be questioning whether we should compare ourselves with the US when considering the likelihood of possible future housing corrections.
Stevens says that simply comparing the two markets – Australian and the US – it would be “hard to avoid the impression that gravity will inevitably exert its influence on Australian dwelling prices”
But when you compare Australia with other international housing markets, Stevens says, “the picture is much less clear”.
“To the extent that we can make any meaningful statements about international relativities, the main conclusion would be that Australian dwelling prices, relative to income, are in the pack of comparable countries. In this comparison, the United States seems the outlier,” <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">he said in a speech to the Anika Foundation Luncheon in Sydney today</a>. 
Stevens presented two charts to show how Australian housing affordability has diverged from the US since 1986, but performed in line with many other comparable countries.
The first of these charts just compares Australia to the US on the basis of dwelling prices to income ratios and shows that the two countries were last on a comparable footing in 1986 – but since then have diverged marketedly.
<img alt="dwelling1" height="380" width="470" src="/images/stories/2012/dwelling1.gif">
Between now and 2011 Australian house prices have trended up from a ratio of 2:1 to 4.1 – with slight correction around the GFC while US house prices relative to income have remained below a ratio of 2:1, having accelerated towards a ratio of 3:1 from around 1996 until the GFC brought about a dramatic fall in prices.
Comparing Australia with a host of other international housing markets on the same ratio measure, Stevens presented a difficult to read spaghetti-like chart (below).
It does however show that countries like New Zealand, the Netherlands and the UK have housing markets performing in the realm of the Australian market, while Japan is now more closely linked to the US.
<img alt="dwelling2" height="400" width="470" src="/images/stories/2012/dwelling2.gif">
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available.
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom.
“In the United Kingdom the fall was smaller – at about 15%–20%.
“In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available."
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom."
“In the United Kingdom the fall was smaller – at about 15%–20%. In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
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Australia has its own place in the world when it comes to housing affordablility: RBA’s Glenn Stevens

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The prospect of the mooted Australian housing bubble bursting is less likely than what it was five years ago, according to Glenn Stevens, governor of the Reserve Bank.
Speaking at a Sydney luncheon today, Stevens said that the housing market bubble, “if that's what it is, seems to be taking quite a long time to pop – if that's what it is going to do”.
“The ingredients we would look for as signalling an imminent crash seem, if anything, less in evidence now than five years ago.”
“Even if the pessimists turn out to be right on one or more counts," Stevens said, “it doesn't follow that we would be unable to cope”.
“Acting sensibly, with a long-term focus, has as good a chance as ever of seeing us through whatever comes our way.
“Most Australians I encounter who return from overseas remark how good it is to be living and working here. We are indeed ‘lucky’ in so many ways, relative economic stability being only one of them,” he said in as part of an a<a target="_blank" href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">ddress entitled “The Lucky Country” to The Anika Foundation Luncheon in Sydney today, supported by Australian Business Economists and Macquarie Bank</a>.
"We should never say a crash couldn't happen here, and the Reserve Bank continues to monitor property markets and the performance of mortgages quite closely, as we have for many years.
"But it has to be said that the housing market bubble, if that's what it is, seems to be taking quite a long time to pop – if that's what it is going to do.
"The ingredients we would look for as signalling an imminent crash seem, if anything, less in evidence now than five years ago." He envisaged that if dwelling prices in Australia did slump, then there would be obvious questions about how that dynamic could play out.
“In such circumstances people typically worry about two consequences. The first is a long period of very weak construction activity, usually because an excess of stock resulting from previous over-construction needs to be worked off.
“But we have already had a fairly protracted period of weak residential construction; it's hard to believe it will get much weaker, actually, at a national level. The second potential concern is the balance sheets of lenders.
“This scenario is among those routinely envisaged by APRA's stress tests over recent years. The results of such exercises always show that even with substantial falls in dwelling prices, much higher unemployment and associated higher levels of defaults, key financial institutions remain well and truly solvent
“Of course, it can be argued that the full extent of real-life stresses cannot be anticipated in such exercises. That's a reasonable point. But we actually had a real life stress event in 2008 and 2009. The financial system shows a few bruises from that period, but its fundamental stability was maintained."
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Fewer ingredients now for mooted Australian house bubble pop than five years ago: RBA's Glenn Stevens

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<img src="/images/stories/2012/carramar.gif" width="470" height="300" alt="carramar">
An offshore private investor has paid $22.75 million to acquire the Carramar Village Shopping Centre north of Perth sold by property developer Peet.
The sale of the neighbourhood shopping centre was negotiated by CBRE’s Andrew Woodley-Page and Peter Agostino with the sale price reflecting an initial yield of 8.06%.
The shopping centre is located on the corne of Joondalup Drive &amp; Cheriton Drive in Carramar, 27km north of Perth in the City of Wanneroo – one of Australia’s fastest growing municipalities.
Completed in 2009, Carramar Village comprises a gross lettable area of 5,429 square metres and parking for around 300 vehicles.
It was sold with a long term lease to Woolworths, expiring in 2024, and includes 14 specialty stores among them Bakers Delight, Priceline Pharmacy and Jetts Fitness.
It is located within Peet’s Carramar Golf Course Estate – a community of around 3,000 households that has been created over the past decade and is now almost completely sold out.
Overseas buyers have tended to focus on buying up Australian hotels and offices in CBD locations, but high yields are on offer for retail assets.
Last week, Darwin-based private investor Cenfurn Investments, associated with the Koch Family, paid $14 million to acquire The Zone Retail Centre and an adjoining retail development site in Darwin on a yield of around 11%.
The buyer of the Carramar centre was advised by Perth based property investment advisors, API Hughes.
API Hughes managing director Peter Hughes says Carramar Village presented itself as a sound investment opportunity for their client “as it has a strong trading Woolworths together with the right mix of convenience service orientated specialty tenant”.
“Retail centres are very much on our buying radar as higher yields and lower interest rates make this an ideal time for acquiring strong performing centres,” Hughes adds.
CBRE Perth managing director, Peter Agostino says the sale confirms there is strong investor appetite for retail property.
CBRE negotiated the sale of the WA centres Wanneroo Central and Stirling Central with further shopping centre transactions in the final stages of negotiation.
“We received strong interest in the campaign, particularly from local private investors and syndicators seeking a secure investment, with the centre’s attractive rent review structures providing assured income growth,” Agostino says.
In May <a href="https://www.propertyobserver.com.au/retail/perron-group-to-acquire-half-stake-in-three-centro-centres-for-%24690-million-setting-post-gfc-commercial-retail-record/2012051754740">the privately owned Perron Group</a> agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
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Overseas buyer pays $22.75 million for Peet's Perth neighbourhood shopping centre on yield of 8%

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Inner city infill residential property developments have the advantage of being close to the CBD and benefiting from nearby established infrastructure, but the returns can be mixed, Monique Sasson Wakelin has warned.
She says investors should tread carefully when considering these investments.
“Done well – built in a good inner suburban location, with quality design and construction – a new estate can perform reasonably well, eventually,” says Wakelin, director at Melbourne-based Wakelin Property Advisory.
“But they do tend to struggle capital growth-wise for the first few years. Moreover, they never seem to quite match the performance of top grade, established investment property."
“When the property market is booming, it is understandable that some budget-constrained investors who struggle to outbid others for established property resort to buying in new estates."
“But in a slow property market where competition is light, and it is possible to buy into the established inner suburban market, there’s really no need to settle for second best.”
As an example, house prices in an established suburb like Albert Park have risen 321% over the past 15 years, while a suburb like Port Melbourne, where Mirvac built its Beacon Cove project on former industrial land in 1996, have only recorded 249% growth.
Over the last three years, houses prices have risen by 51% in Albert Park compared to 26% in Port Melbourne.
In a column penned for the Eureka Report, Wakelin writes that while much of the new housing construction will take place in fringe suburbs, there is a drive among governments and developers to reassign large tracts of former industrial and other redundant land within inner and middle suburbs for residential use.
Wakelin says there are a number of positives about infill development closer to the city compared to new greenfill housing in the fringe suburb counterpart.
“The most obvious is location. Many of these new residential estates are only a few kilometres from the CBD, as opposed to 40 or 50 kilometres,” says Wakelin, writing for the Eureka Report.
Aside from shorter commutes to the city, she says the other positive factors in favour of infill developments are the existing hard infrastructure in the surrounding area (roads, schools, childcare facilities, medical facilities) as well as closer proximity “to the things that give an area a 'soul’,” – shops, cafes and restaurants.
But she warns investors to keep in mind the experience of Beacon Cove in Port Melbourne, which shows that there is a lifecycle for infill developments.
She quotes Biggin &amp; Scott Port Melbourne agent David Lack, who says there were long queues and people camped overnight when the project first came on the market in 1996.
But according to Lack, the Beacon Cove properties struggled at first on the resale market in the early years and it was only from around 2001 that they started to show a good profit on resale.
Lack also says Beacon Cove properties may have been overpriced at their first offering, asking $305,000 for a three bedroom house.
“The lesson from Beacon Cove for investors considering buying into infill developments is to tread carefully,” she says.
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Investors need to be aware of cyclical ebbs and flows of inner city new housing projects like Beacon Cove: Monique Sasson Wakelin

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<img alt="dixonflicker" src="/images/stories/2012/dixonflicker.jpg" height="225" width="400">
Yields ranging from 4.7% to 12.2% are being achieved on properties acquired to date by the US Masters Residential Property Fund, which has listed on the Australian Stock Exchange (ASX) last Friday.
The pioneering Australian fund – the first to invest directly in US residential property – is managed by financial planning firm Dixon Advisory.
It has steamed ahead with its New York metropolitan area property acquisitions since launching mid-last year, acquiring 167 properties to date with a total value of US$38.3 million.
It also has conditional acceptances on a further 114 properties worth a further US$29.5 million, which would take its total portfolio to 281 properties should all these conditional purchases proceed to settlement.
In addition, the fund is in a good position to add substantially to its portfolio with a net asset position of $95.6 million, no borrowings and $77 million in cash at its disposal.
Since launching, the fund has targeted residential property in the New York metropolitan area, with a specific focus on multi-family properties in Hudson County, New Jersey – a short commute from Manhattan across the Hudson River.
In its most recent update prior to its ASX listing issued on July 15, the fund said it acquired a further 21 properties in May at a cost of $7 million, including buying a number of subdivided brick terraces in downtown Jersey City – a departure from the more common purchases of wood-panel sub-divided houses.
The most expensive recent purchase was US$936,000 spent on a four-level, two-apartment block in downtown Jersey City, acquired on June 22 with a modest net annual yield of 4.7%.
In March, Dixon Advisory managing director, Alan Dixon told Property Observer that while the US market “remains hugely regional” with “significant differences in the performance of each region and the sub regions within them” the fund’s target areas “have now either reached neutral or are showing signs of recovery”.
“Buying is still very attractive, with most housing well below the replacement cost for the buildings, hence you are getting the land for free,” he says.
“There is still a significant shadow inventory in relation to housing heavily under water with the banks yet to act. We see this as a significant opportunity for the fund as we are the best placed investor in the Hudson County area to deal with a large number of home purchases in a short period.
“We think that housing in our target areas is likely to enter a very long, slow increase in value over coming years. This cycle is potentially poised to be very long compared to historical averages but there is significant room for capital gains and strong income returns given the very low starting level of valuations,” he said at the time.
At the same time as it listed on the ASX, the fund released annual results for the period from April 15 to December 31.
The results show earned rental income of $323,980 of an investment property portfolio worth $18.74 million.
The fund earned an after-tax profit for the eight and a half month period of $366,049.
The fund initially listed on the small-cap National Stock Exchange (NSX) on June 29 at a price of $1.60.
It closed unchanged at $1.57 yesterday on the ASX, giving it a market capitalisation of $161.7 million.
Since its IPO on the NSX the fund has raised $160 million from mainly small investors, including self managed super funds.
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Wide ranging residential yields in Dixon Advisory’s US housing fund as shares debut on ASX

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A second influential economic think tank believes the mining boom will start to fade in the medium-term, replaced by growth in other parts of the economy. including investment in new residential property.
Coming on the back of the <a href="https://www.propertyobserver.com.au/hotspots/tourism-helps-broken-hill-shed-its-one-horse-mining-town-investment-status-as-deloitte-s-questions-mining-boom-longevity/2012072255635">Deloitte Access Economics business outlook report</a>, which says the mining boom may be over in just two years, BIS Shrapnel expects mining investment to continue to grow over the next two years, but at a moderate pace.
In its Long Term Forecasts 2012-2027 report BIS Shrapnel expects the mining investment slack to be taken up by non-mining sectors of the economy, including a pick-up in investment in the residential property sector.
“Residential investment, triggered by recent interest rate falls, should start growing from late this year, driven by the dwellings shortage that has developed,” says Tim Hampton, senior economist at BIS Shrapnel.
“And non-mining business investment, currently below levels required to underwrite even moderate demand, will recover as interest rate reductions over the past year support demand and capacity constraints emerge." 
According to BIS Shrapnel, solid population growth underwritten by a rebound in immigration, combined with around average employment and wages growth, will continue to support growth in household expenditure.
However, due to persistently high household debt, BIS Shrapnel believes that expenditure growth will “not approach the giddy heights that it did during the debt-fuelled spending spree of the early-to-mid-2000s”.
BIS Shrapnel expects GDP growth to remain around its current rate of just above 3% for the next five years.
It warns that the biggest risks to the Australian economy – and a likley rebound for housing and non-mining sectors – remains the potential for the European economic crisis to have a larger-than-forecast negative impact on Australia
“We expect the European situation will get worse before it gets better, and will drag on for many years,” says Hampton.
“Irrespective of how their significant issues are resolved (eg. Euro break-up, further debt write-offs), the main channels of influence for Australia will be through reduced consumer and business confidence, lower commodity prices and tighter funding conditions."
“This would likely further delay the recovery in dwelling and non-mining business investment.”
The report identifies a marked slowdown in mining investment over the next two years.
It says that new private engineering construction, which after increasing by 50% over the past year, is expected to grow by 16% over the next year and just 8% the following year.
“At the same time, public sector investment – having been boosted by post-GFC stimulus packages – is now falling sharply as those packages wind down and all levels of government try to get their finances in order,” says BIS Shrapnel.
Hampton expects the recovery in residential property, combined with a revival in the non-mining sectors of the economy, to be strong enough to prevent the economy from stalling as it transitions to a more broadly-stronger footing.
Currently, Hampton says the economic picture is one “out of balance, undergoing significant structural change, with offsetting cycles averaging to a moderate outcome” driven by the high Australian dollar, which is impacting on competitiveness, thereby creating enormous pressure and resulting in job losses in trade-exposed industries like manufacturing, tourism, education and business services.
“Meanwhile, around 60% to 75% of the economy is sheltered from the impact of the high dollar. Those with economic power are doing well – the banks, the major supermarkets, utilities,” says Hampton.
“But SME businesses with little economic power and those that rely on servicing non-mining investment are largely languishing, with weak growth and profitability, particularly those whose gearing makes them vulnerable. Hence the continuing threat of insolvencies.”
These sheltered industries are the ones that will benefit most from lower interest rates and the forecast increase in non-mining private investment.
However, the outlook for non-mining trade-exposed industries remains poor, which BIS Shrapnel says will continue to suffer under the weight of the high Australian dollar and an uncertain global economy.
A more enduring risk, Hampton warns, is that the significant under-investment in the non-mining industries and infrastructure gradually erodes the medium-term growth potential of the economy, and leaves the Australian economy increasingly sensitive to large fluctuations in world commodity prices. Businesses will also need to make further gains in terms of energy efficiency, with energy prices expected to continue to rise strongly for the foreseeable future.
Finally, there is a risk of a collapse in minerals prices and investment as the cycle turns down. In that regard, BIS Shrapnel believes that increased supply, rather than lack of demand, poses the greatest downside risk to world commodity prices. However, a fall in world demand would initiate a much larger shock.
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New housing investment to pick up this year as mining influence expected to fade over next two years: BIS Shrapnel 

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Economists appear to be coming to the conclusion that the Reserve Bank may leave the cash rate on hold at its next meeting on August 7.
Fifteen out of 25 economists polled by Bloomberg on July 20 – following the release of a more bullish July 3 monetary policy statement on July 19 – now expect the Reserve Bank to leave the cash rate unchanged at 3.5% in August.
This is up from 13 out of 24 economists who said the RBA would leave the cash rate unchanged when polled by Bloomberg on July 13.
Of the major banks, only the Commonwealth Bank is tipping the RBA to cut rates on August 7.
Noticeably, Westpac has pushed back its forecasting timetable of rate cuts by three months, with chief economist Bill Evans anticipating the next rate cut in October, having earlier forecast one in August.
Looking ahead to the end of the year, 12 out of 25 economists expect the cash rate to fall by 25 basis points to 3.25% with other forecasts ranging from 2.5% (Credit Suisse) to 3.5% (Barclays Capital).
In ANZ’s latest economics weekly wrap, ANZ’s head of Australian economics and property research, Ivan Colhoun, says the RBA Board’s July Minutes showed that the Bank saw growth momentum in the Australian economy to have been a little stronger than it had previously thought.
“This primarily reflected the surprisingly strong first quarter GDP data, which was released a day after its June policy meeting.
“The Minutes showed that the RBA felt that growth had slowed to around trend in the second quarter, while inflation pressures were said to remain contained."
“In light of a 'material' easing in monetary policy since late 2011, which has led to a lowering in lending rates to 50 to 75 basis points below their medium-term average, the RBA appears to want to see how the economy responds to this loosening in monetary conditions.
“Hence, the RBA appears likely to sit on the sidelines for at least the next couple of months, assuming that the situation in Europe doesn’t deteriorate markedly in the meantime," he says.
On Wednesday the second quarter CPI data (to June 2012) will be released by the ABS, and Colhoun says this will be “closely watched”.
“But we think even a low underlying inflation result, by itself, will probably not be enough to spur the RBA to lower the cash rate in August."
“That said, it would increase the probability of further rate cuts down the track, and we still consider that further modest easing of 50 basis points will be forthcoming by the end of the year,” he says.
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Economists more confident of RBA keeping rates on hold in August: Bloomberg	

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The realestate.com.au brand will be integrated into the mastheads and property sections of News Limited metropolitan, community and regional newspapers as part of a new cross-media marketing alliance between News Limited and the REA Group.
News Limited has a 61.6% shareholding in REA Group Limited.
The alliance will see property sections of 88 News Limited publications rebranded as “Realestate”.
The two publishers have also entered into a reciprocal content syndication agreement, commencing in August, bringing together the realestate.com.au and realcommercial.com.au websites and News Limited’s national and state news websites.
The 88 newspapers have a combined weekly circulation of 7.15 million.
There will also be “greater content synergies” between <a href="https://www.news.com.au/realestate">news.com.au/realestate</a> and realestate.com.au.
Realestate.com.au’s main rival, the Fairfax-owned Domain is used as the major branding across the property sections of all Fairfax newspapers. But Fairfax now has more than Domain amidst its property brands following <a href="https://www.propertyobserver.com.au/industry-news/accc-approves-fairfax-weekly-review-deal/2012052454818">Fairfax Media’s 50% merger with Antony Catalano’s Metro Media Publishing business</a>, publisher of Melbourne real estate advertising glossy The Weekly Review.
The Weekly Review provides Fairfax with another avenue for especially for boutique property listings.
Its to replaced the Melbourne Weekly, which ran for nearly 20 years, with two titles - the Stonnington Review and Boroondara Review, going out to 750,000 homes in the expensive bayside suburbs of Melbourne.
As part of the REA Group-News Limited alliance a new digital and print advertising offer known as the 'Prestige Plus Package' has been introduced allowing estate agents to provide vendors with an advertising offer that includes a listing in the Sydney eastern suburbs Wentworth Courier as well as a listing on realestate.com.au.
Other markets are being assessed for suitability of similar offers.
The products comprising the Prestige Plus Package are still able to be purchased independently from each company should customers decide not to take advantage of the offer.
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News Limited papers to integrate print property sections with realestate.com.au brand

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

Joel Robinson

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

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

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[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.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[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]

Larry Schlesinger

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