<html><body>
A lack of leasing transparency in Victoria, WA and South Australia is hurting smaller retailers and discouraging international retailers from setting up in these states, according to leasing information provider Leasing Information Services (LIS).
Simon Fonteyn, director of LIS, says he is aware of at least one overseas retailer who is reconsidering entry into the Australian market due to a lack of information about leasing costs in these three states.
There is no requirement for leases to be registered in Victoria, WA or South Australia.
In NSW and Queensland retail leases must be registered with the Land Titles Office and then become a public document, which anyone can access to learn more about the market.
Fonteyn told the Australian Financial Review this lack of transparency “was creating a lost opportunity for these states” when it comes to attracting global retailers.
He says there evidence suggest that there leases are being mispriced in markets and particularly hurting smaller retailers who often ended up paying too much rent.
Smaller retailers, Fonteyn says, lack the informal networks needed to operate in states where data was not readily available.
The recent Productivity Commission inquiry into retailing found evidence that smaller retailers were paying higher rents in shopping malls compared to larger tenants.
In its submission to the inquiry, Westfield admitted that major tenants such as supermarkets and department stores had a strong negotiating position and pay lower rents per square metre than smaller retailers, but said they contributed more capital to the construction of the store, “take longer-term leases, up to 30 years in some cases, and take much larger stores”.
The government’s response to the Productivity Commission inquiry supported the states and territories examining whether to introduce a one-page summary of key lease terms and conditions to address the imbalance between landlords and retailers.
Russell Zimmerman, executive director of the Australian Retailers Association agreed with Fonteyn that retailers, who are unable to find out how much rent their competitors are paying were at a disadvantage when negotiating with landlords.
According to Zimmerman, NSW has the best model of lease registration but it could be more transparent by disclose incentives such as assistance with marketing and rent-free periods.
Western Australia is currently consulting with the industry on ways to improve access to retail lease information and is seeking submissions by July 25.
 However, there is resistance to the idea of lease registration in Victoria over concerns that it will cause delays and make leasing transactions more expensive.
South Australia has no plans to consider requiring lease registration.
</body></html>

lschlesinger-FZcF9M3vE6

Lack of leasing transparency in Victoria, WA and SA hurting overseas investment and smaller retailers

<html><body>
As debate swirls as to the longevity of the mining boom, Westpac's decision to remove the remote NSW town of Broken Hill from a list of risky single-industry towns is certain to fuel debate about whether the bank has made the right call.
All the other towns on Westpac's list of single-industry towns - including Moranbah, Blackwater, Port Hedland and parts of Karratha - are heavily reliant on the mining industry, with Westpac effectively concluding that double-digit annual house price growth and double digit rental yields are not sustainable in the long-run.
According to Westpac, Broken Hill and the other mining town taken off the list - Kalgoorlie- Boulder in WA - have house price growth that has pulled back and rental yields in a more sustainable range.


“Broken Hill is still reliant on mining, but it has diversified into tourism. There are now lower mortgage delinquency rates, while house prices have slipped back and rental yields are between 5% and 6%," says Westpac spokesperson Danny John.
The bank's decision to update its list comes as a new report from Deloitte Access Economics says the mining boom may be over in just two years.
"The strong bit of Australia's two-speed economy won't stay strong for more than another two years or so'," says the report, authored by Chris Richardson.
"Mining companies are making it clear the current spike in investment is due to decisions taken a while back, whereas we are getting few new mining mega-projects across the line," says Richardson, who adds that the peak in mining projects may not be far off.
The Deloitte report does provide some vindication for Westpac ruling Broken Hill to be more than just a mining town, noting that energy giant AGL is currently constructing a new solar farm at Broken Hill.
But Westpac's decision to exclude Broken Hill from a list of “single-industry” towns has bemused LJ Hooker Broken Hill principle Jim Hickey.
“It seems very strange that Westpac would do that for Broken Hill under the current climate as I can’t remember it even being this bad in the housing/investment industry in my 27 years in the property industry and previous to that as a lending officer with the Rural Bank,” Hickey tells Property Observer.
“Broken Hill is very much a one industry town. If the mines fail, we will all fail,” he says.
Hickey says he has not sold a property to an investor since the GFC.
“I actually advertised a block of three units last year returning $19,500 per annum at $195,000 in Adelaide, Melbourne and Sydney and never got a phone call where previously my phone would have gone mad,” he says.
Hickey say the market has gone quiet again after enjoying five reasonable months of sales over the past six months.
Despite Hickey's concerns, figures compiled by SQM Research show that rents and median family income in Broken Hill has not risen at the kinds of unsustainable rates seen in places like Port Hedland (where houses rent for as much as $3,000 per week).
According to SQM, rents in Broken Hill have risen from $120 per week to $135 per week between 2006 and 2011 while family income has risen from $827 to $876 per week.
Realestate.com.au lists 323 properties for sale in post code 2880 (Broken Hill), among those a number of properties showing high rental yield potential, but below the 16% returns on offer in some mining towns.
Among those listed for sale aimed at investors is a <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-110323293">two-bedroom cottage on a 532 square metre lot </a>listed by Zeta Bennett from First National Real Estate.
The property is listed for sale at $105,000 and Bennett says investors can expect rent of $200 per week for a property in this price range, equating to a yield of 9.9%
Bennett also has<a href="https://www.realestate.com.au/property-house-nsw-broken+hill-107563493"> a three bedroom house on O'Farrell Street on a 1,000 square metre block</a> asking $159,000 with rental expectations of $185 per week. This gives an indicative rental yield Saveof 6.05%
Despite disagreeing with Westpac's assessment of Broken Hill, Hickey says there are some “very good things on the horizon” such as the Wind Farm at Silverton purchased by energy group AGL, which is due to proceed.
AGL have also received approval for a large solar farm to be split between Broken Hill and Nyngan with energy provider purchasing 200 acres of land close to town.
“Hawsons (Carpentaria) Iron Ore project looks on track and they are completing their second-phase feasibility study at present.
"A cobalt mine project looks like it will go ahead approximately 28 kilometres from Broken Hill,” he adds, following the discovery of cobalt deposits several kilometres in length and up to 300 metres wide by Broken Hill Prospecting.
“[So] mostly still mining related and therefore still a one industry town.
Westpac took Broken Hill off its single-industry list in mid-June with a spokesperson saying the town had diversified into tourism while house price growth and yields were now back at sustainable levels.
</body></html>

Tourism helps Broken Hill shed its one-horse mining town investment status - as Deloitte's questions mining boom longevity

<html><body>
The slow rate of new home building in Australia – much lamented by industry bodies – could actually insulate the housing market from collapse should there be a sharp slowdown in the Chinese economy, according to banking analysts.
<a href="https://www.propertyobserver.com.au/residential/value-of-new-home-building-declines-for-fourth-consecutive-quarter-in-march-abs/2012071955661" target="_blank">March quarter figures released on Wednesday by the ABS</a> show that the new housing construction sector declined for the fourth straight quarter, with the value of new residential building work done falling 1.2% to $9.29 billion on a seasonally adjusted basis, following a 1.7% decline in the December 2011 quarter.
Concerns have been raised that a drop in Chinese demand for Australian coal and other raw commodities as result of the Chinese economy slowing further could have far-reaching consequences for the wider Australian economy and demand for housing.
In March this year, credit rating agency Standard &amp; Poor’s warned that Australian house prices could fall 20% this year if Chinese growth stalls to 5%.
But in a recent report, Citigroup strategist Tony Brennan said that major housing corrections, defaults and foreclosures often came after periods of excessive home building, leaving an excess supply of housing that put downward pressure on prices.
However, he says Australia does not show indications of over-building of homes.
Merrill Lynch equity strategist Josh Kirkwood expects no change in Australian house prices over the next three years due to the level of deleveraging and changing attitudes of investors.
He disagrees with people who believe the Australian housing market is bulletproof, but says there won’t be a house price crash as occurred in the US, the Australian Financial Review reported.
The latest figures released by the Chinese government’s National Bureau of Statistics and reported by Savills show that while China's real estate investment growth slowed sharply in the first half of the year, “dragging down the broad economy”, property sales swung into positive growth in June for the first time in eight months.
Savills says this “bodes well for a recovery in the sector, which could ease concerns about a hard landing of the world's second biggest economy”.
Real estate investment, which affects more than 40 other sectors from cement, steel to furniture, grew 16.6% from January to June versus an annual rise of 32.9% in the same period last year, the National Bureau of Statistics.
Fears of a flow-on effect for Australian prices have been expressed not just in relation to China, but also as evidence shows significant house price falls in the United States and Europe, most notably Spain.
Fund managers have suggested Australian investors look offshore due to the high dollar and discounted real estate.
“If you have an Australian dollar above parity and housing prices in America which are down 50% [since the GFC], it is a far easier decision to invest your money overseas than here,” says Ashley Pittard, portfolio manager at PM Capital.
</body></html>

Australian housing market insulated from Chinese slowdown risk by slow rate of new home building: Analysts

<html><body>
Investors are surging back into the housing market, according to Australian Property Monitors’ Dr Andrew Wilson.
He points to May ABS housing finance figures showing that the value of investor housing rose 26% over the month to the highest monthly total recorded since June 2010.
Wilson says the value of investor loans over the first five months of the year is now 7.2% higher than for the same period in 2011.
The value of investor loans approved over the first five months of the year rose 31% in Queensland and increased by 16% in WA and 6% in NSW, compared with the same period in 2011.
“Investors have surged back into the housing market,” says Wilson.
“These figures indicate increasing confidence by investors in the Sydney, Perth and Brisbane housing markets.”
However, the value of Victorian investor loans fell 3.6% over the first five months of the year, bucking the trend.
Wilson says NSW is the shining star of the investor market as it is the only state where the value of investor loans is higher than the same period in 2010, when housing markets were very active due to various government stimulus packages.
“This data certainly provides more positive data for housing markets with the realistic prospect of increased buyer activity and some house price growth in most centres over the coming months,” he adds.
</body></html>

Investors surging back in Brisbane, Perth and Sydney but Melbourne left out:  APM

<html><body>
John Symond’s Aussie Home Loans has cut its one-, two- and three-year fixed rate home loans by 20 basis points.
The new fixed rate being offered by Aussie is 5.79%
“The rate cut comes after reductions in the variable home loan rate across the industry and a number of consecutive RBA rate moves since late 2011,” says Aussie.
Aussie operates primarily as a mortgage broker but also provides home loans under its own brand.
The Aussie fixed rate cuts follow credit union CUA and the Commonwealth Bank reducing their fixed rates recently.
The CUA is offering a one-year fixed-rate home loan at 5.65% and two- and three-year fixed-rate home loan at 5.73%.
Last week the Commonwealth Bank cut its one- and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
</body></html>

Aussie cuts fixed rates to 5.79% following cuts by CUA and CBA

<html><body>
The historic Burrawang Cafe and Bower Cottage in the Southern Highlands will go to auction on August 26, using a controversial selling method known as the “reverse auction” or “Dutch auction”.
The property, at 11 Hoddle Street in Burrawang, has a starting auction price of $1.68 million and last traded for $690,000 in June 2002, according to RP Data records.
The café has been listed for sale since July last year with an original asking price in excess of $2 million.
It will be reverse auctioned by well-known auctioneer Damien Cooley.
Under a reverse auction, the price starts at market value (set by the vendor) – above the reserve price – and decreases until a bid is placed that is the winning bid. The winning bid is the first bidder to put their hand up.
"As a visual aid there will be a red and green light used at the auction and if a buyer has not put up their card before the price reaches the vendor’s bottom line then a red light will be displayed and the auction will be stopped. While ever the green light is on the property can be bought, " explains Cooley.
The reserve price is not disclosed beforehand and only becomes known once the red light appears.
Cooley says he believes this to be a "really different, exciting and inventive way of marketing a property" and says he is thrilled to join  Mooney and property owner Garry Harding in "performing this unique auction method".
To encourage more people to take part in the auction, Harding, has placed a $10,000 reward payable to anyone who finds the final official buyer.
If no one introduces the buyer then the buyer receives the $10,000 as a rebate off the selling price.
Burrawang Cafe is located in the main street of Burrawang, about 12 minutes to Bowral.
It dates back to the 1860s and has been fully restored.
The café and Bower Cottage (also of 1860s vintage) stand on a half-acre (0.2-hectare) block, and both are currently leased on rolling monthly leases.
Burrawang General Store Cafe is a fully operational 100-seat timber restaurant featuring floodlit barrel ceilings. It is fully licensed and includes a 3,000-bottle cellar, a landscaped and manicured English garden and a separate office.
Bower Cottage is a fully renovated three-bedroom weatherboard home on the same title complete with a promenade balcony and polished floors. It features a living and dining area with garden views, a fireplace with access to an alfresco entertaining area. It also includes a seperate studio.
The property is being sold by Raine &amp; Horne agent Rick Mooney.
Mooney tells Property Observer the vendor has requested a reverse auction, as he believes it will attract more buyers.
“We are confident we will get a lot of enquires and that it’s a good idea."
Mooney says letters have been sent to the NSW Department of Fair Trading and Real Estate Institute of NSW to ensure they are the “front foot” regarding the legalities of this controversial auction technique.
“We want this to be a positive story,” he says.
Christian Payne, president of the REINSW, says that officially the institute has not discussed the auction or taken a view on the methodology.
“It’s certainly been used to sell fish and tulips,” he says, in reference to its use at the Sydney fish markets and the origins of the technique – selling tulips in Holland for over 100 years.
Payne says the current legislation was not written with reverse auctions in mind and says regulatory issues could arise as a result of the Southern Highlands auction.
Speaking in his capacity as a real estate agent and general manager of Payne Pacific Real Estate in Cronulla, Payne says the reverse auction has “question marks all over it”.
His primary concern is that estate agents should be working for the vendor to get the maximum price.
In a traditional auction, Payne says people attending have the opportunity to increase their bid by say a $1,000 before the hammer falls, something that’s not possible under a reverse auction, where the first bid is final.
“Are we getting the maximum price for the vendor?” he asks.
The Burrawang Café is by no means the first reverse auction in Australia.
Alex Bartolo, from Raine &amp; Horne Narre Warren South, tells Property Observer he used reverse auctions successfully up till 2004 for about 12 properties and recalls that about seven or eight of them sold using this technique.
He recalls they attracted a lot of media attention at the time.
Not all of it was positive.
Bartolo was involved with a stoush with REIV chief executive Enzo Raimondo, who was then strongly opposed to what had become commonly known as the “Bartolo auction method”.
Raimondo told the Sunday Age in June 2004 that a reverse auction was “a gimmick and a fad” that Bartolo was using to differentiate himself in a tight market.
“I don't think a reverse auction is in anyone's best interests,” Raimondo says.
He added that Dutch auctions do not contravene the real estate act but only because reverse auctions weren't considered when the legislation was written. It was for conventional auctions.
“But it's not in the spirit of the legislation."
Raimondo declined to comment further on this issue when Property Observer contacted the REIV.
A spokesperson for the institute said it was best left to the REINSW to comment.
Bartolo, though, remains defiant and believes a reverse auction is fairer system than the traditional method because it does not hassle the vendor or purchaser.
He says the REIV view is “old fashioned” and says there are many in the industry who don’t like it when anyone changing the rules.
Bartolo says he has contacted the selling agent and suggested that the auctioneer announce when the reserve price has been met.
“Then bidding can continue and the winner bidder has the first right of refusal,” he says.
Cooley says its the first time he is undertaking a reverse auction.
"We only know of a similar method used many years ago in Victoria so it’s terrific to be apart of it. This method is an effective way of communicating to buyers the owner’s genuine commitment to selling the property so we’re looking forward to receiving a lot of interest on auction day”, he says.
Reverse auctions have been used at the Sydney fish markets since 1989.
At the fish market, the auctioneers set the target price of the fish each morning, based on quality, demand and the previous day's prices. They then add on $3. Prices are displayed on two huge electronic dials that hang from the ceiling; when the selling starts, the clocks count down at a rate of $1 per revolution, the cents racing by like milliseconds on a stopwatch, until the first buyer bids.
</body></html>

Southern Highlands Burrawang café ‘reverse auction’ not the first, but still stirring up debate

<html><body>
Townsville is forecast to be the strongest-performing regional location in Queensland between now and 2015, according to researchers BIS Shrapnel.
Property values in Townsville are forecast to rise by 6% per year over the next three years, with the regional city benefiting from rising investment in the resources sector over 2012-13, says BIS Shrapnel in its latest Residential Property Prospects, 2012 to 2015 report.
Townsville’s projected growth is just below the cumulative 20% forecast for Brisbane over the three-year period.
Further north, Cairns will also benefit from resources investment, with 5% annual dwelling growth to 2015.
The weakest growth prospects are on the Gold Coast and Sunshine Coast, with BIS Shrapnel forecasting capital growth of 4.2% per annum to 2015 due to a drop in interstate migration.
March quarter sales figures released by the Real Estate Institute of Queensland showed that Townsville has been one the strongest-performing Queensland municipalities, with just a 2% decline in house prices and no change in unit prices over the prior 12 months.
 In comparison Gold Coast house and unit prices are down 5.1% over this period.
<table style="width: 470px;" border="0" cellpadding="0" cellspacing="0">
<colgroup>
<col width="357">
<col width="64" span="4">
</colgroup>
<tbody>
<tr height="65">
<td height="65" width="357">Region</td>
<td width="64">Median Sale Mar12</td>
<td width="64">Qtrly change</td>
<td width="64">Median Sale 12mths Mar12</td>
<td width="64">1yr change</td>
</tr>
<tr height="20">
<td height="20">SOUTHEAST QUEENSLAND</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr height="33">
<td height="33" width="357">BRISBANE (SD)</td>
<td>$  425,000</td>
<td>0.0%</td>
<td>$  430,000</td>
<td>-5.5%</td>
</tr>
<tr height="20">
<td height="20">BRISBANE CITY (LGA)</td>
<td>$  505,000</td>
<td>1.2%</td>
<td>$  510,000</td>
<td>-4.7%</td>
</tr>
<tr height="20">
<td height="20">GOLD COAST CITY (LGA) +</td>
<td>$  454,375</td>
<td>0.7%</td>
<td>$  470,000</td>
<td>-5.1%</td>
</tr>
<tr height="20">
<td height="20">SUNSHINE COAST (LGA) +</td>
<td>$  430,000</td>
<td>0.6%</td>
<td>$  437,000</td>
<td>-6.0%</td>
</tr>
<tr height="20">
<td height="20">TOWNSVILLE CITY (LGA)</td>
<td>$  360,000</td>
<td>0.0%</td>
<td>$  365,000</td>
<td>-2.0%</td>
</tr>
<tr height="20">
<td height="20">CAIRNS (LGA) ~</td>
<td>$  350,000</td>
<td>4.5%</td>
<td>$  350,000</td>
<td>-4.1%</td>
</tr>
</tbody>
</table>
 
“With both Townsville and Cairns offering services to these mining projects, as well as a base for employees in and out of the projects, population growth should benefit with a rising shortage of dwellings emerging until new supply catches up,” says BIS Shrapnel.
“Moreover, the improvement in local economic conditions should also see confidence improve after a period of weakness. Townsville should expect a greater upside to its recovery due to its more diversified economy, although both markets should experience moderate price growth.”
The report notes that house prices on the Gold Coast and Sunshine Coast have generally moved in tandem with Brisbane due primarily to population growth driven by interstate migration.
However, due to interstate migration into Queensland now at long-term lows, BIS Shrapnel says the residential markets on the Gold Coast and Sunshine Coast have weakened considerably.
</body></html>

Townsville has best regional Queensland prospects with smaller Gold Coast recovery by 2015: BIS Shrapnel

<html><body>
They may be remote, dusty places steeped in more than a century of mining history, but Broken Hill and Kalgoorlie-Boulder are no longer risky places to lend money to property investors, Westpac has decided.
The bank has removed both regional locations from a list of “single-industry” towns where property investors will struggle to get a Westpac loan, ruling that house prices and rental yields are now at sustainable levels in these two postcodes.
However, it has added a host of regional mining hotspots to its “single-industry” policy, including Moranbah in Queensland and Port Hedland in WA as it pulls back from lending in what it deems unsustainable housing markets, according to an internal memorandum issued by Westpac to mortgage brokers obtained by Property Observer.
The post codes that have been added to the list are in Queensland:
<ul>
<li>Blackwater (4714)</li>
<li>Moranbah (4744)</li>
<li>Dysart (4745) </li>
<li>Middlemount and May Downs in the Isaac region (4746)</li>
</ul>
And in Western Australia:
<ul>
<li>Roebourne (including Karratha, Baynton, Bulgarra and Pegs Creek in post code 6714)</li>
<li>Port Hedland (including South Hedland in post code 6721)</li>
<li>East Pilbara (post code 6753)</li>
</ul>
For investors in these postcodes the bank says it will now discount rental income listed as security on mortgage applications by 40%, taking into account the risk of vacancies.
“An application with security in a single-industry town will have all rental income assessed at 60%,” says the bank in a note to mortgage brokers.
The new requirement is in addition to the rule that a 30% deposit is required in these postcodes for property to avoid the added burden of lenders mortgage insurance (LMI) – well above the usual 20% deposit requirement.
The policy changes apply to two investment loans – Westpac’s variable rate Equity Access Loan (EAL) and its fixed-rate investment property loan (IPL).
The decision to exempt Broken Hill is particularly surprising in light of its history.
The town of 23,000, situated 1,160 kilometres from Sydney, is the birthplace of what is now the world’s biggest mining company BHP Billiton and has a rich mining history dating back to the discovery of silver ore in 1883.
But Westpac spokesperson Danny John says in both Broken Hill and Boulder house price growth has pulled back while rental yields are in a more sustainable range.
“Broken Hill is still reliant on mining, but it has diversified into tourism. There are now lower mortgage delinquency rates, while house prices have slipped back and rental yields are between 5% and 6%.
“Boulder is still reliant on mining, but has stable house prices and rental yields of about 7% with the housing market in pretty good shape,” John says.
In November last year Hotspotting.com.au’s Terry Ryder – who is generally wary of recommending traditional mining hotspots – wrote that Broken Hill should no longer be seen as just a one-horse mining town.
“Traditionally reliant on mining and agriculture, Broken Hill is developing new economic drivers, including tourism and the arts,” Ryder said.
Ryder quoted Broken Hill mayor Wincen Cuy as saying that visitors find it to be “bigger, greener and cleaner” than they expect.
As to the decision to add the WA and Queensland mining towns to the list, John says Westpac is concerned that in these locations the mining boom is driving house prices and rental yields to relatively unsustainable levels.
As an example, he says house prices have jumped 44% in Moranbah with yields at 13.5%, with property valuers telling Westpac that these figures are not sustainable.
Real Estate Institute of WA president David Airey says the changes probably reflects a view from within the bank that “housing prices and rental returns in particular, in places like Karratha, Port Hedland, South Hedland and Newman are unsustainable”.
“The state government is anxious to address affordability in the Pilbara, and while this won’t happen overnight it’s clear that housing demands will be better met over the next few years.
“In contrast, the steady growth and more affordable market of Kalgoorlie-Boulder perhaps offers greater confidence to lenders,” he says.
Airey says Westpac has the right to “calibrate its business model as it sees fit”.
“But it would be a pity if the result meant that investors were less inclined to supply much needed housing in the state’s northwest. In some ways it’s a Catch-22 situation,” he adds.
Real Estate Institute of Queensland (REIQA) CEO Anton Kardash says lending criteria for remote areas has been restricted for some time given these areas are often reliant on single industries for employment.
“Investors in these areas need to be aware that lenders will require a larger deposit dependent on the element of risk lenders attribute to buying property in a specific region.”
Jane Slack-Smith, director at Investors Choice Mortgages, says the change in policies indicate that Westpac is less keen to lend in mining locations.
“The bank is discounting rental income to allow for vacancies,” she tells Property Observer.
Slack-Smith says Westpac is implementing these changes in places like Karratha despite her clients being able to ask rent of $2,000 per week over a five year lease.
“Some lenders will take 100% of rental income, but Westpac only takes 60% of income.
“Some lenders don’t have postcode restrictions,” she says.
Broken Hill and Kalgoorlie images courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
</body></html>

Broken Hill and Kalgoorlie no longer as risky for property investors but some mining towns unsustainable: Westpac 

<html><body>
Sydney apartment rents have risen almost 10% over the past year, compensating investors to a degree for a lack of capital growth, according to the June property update from Residex.
Figures compiled by Residex show that nationally unit prices increased modestly by 1.24% over the quarter to a median of just under $400,000.
Sydney unit prices were virtually unchanged over the quarter at $490,000 – up just 0.18% – and have risen only 1% over the past year.
In comparison, rents are up 9.78% over the past 12 months to a median of $505, making it one of the strongest-performing capital city apartment markets over this period.
The strongest rental growth was recorded for Perth units, where the median rent rose 12.2% over the past year to a median of $415.
In comparison with a more than 4% drop in Perth house prices over the June quarter, Perth unit prices increased by 7.45% over the three-month period to a median of $421,000.
Melbourne unit prices dropped nearly 1% over the quarter to be down 4.43% for the year with a median price of $428,000.
<img src="/images/stories/2012/07/residexjuly19.gif">
The June results will disappoint Brisbane apartment investors – the inner-city Brisbane market is awash with more than 40 new apartment projects, with capital growth stalling over the quarter (down 0.18%) curtailing annual growth to 2.92% and a median price of $349,000.
<img src="/images/stories/2012/07/residexjuly193.gif">
In addition, rents have gone backwards over the past year, falling 2.78% to a median weekly rent of $350.
Figures compiled by Residex suggest the Brisbane unit market is one of the most affordable in Australia, with 28% of median household income required to meet median loan repayments, compared with 37% in Sydney and 34% in Sydney.
</body></html>

Sydney unit rents up 10% in flat market as capital growth stalls: Residex

<html><body>
The new housing construction sector declined for the fourth straight quarter, according to March 2012 figures released by the ABS.
They show that for the March 2012 quarter, the value of new residential building work done fell 1.2% to $9.29 billion on a seasonally adjusted basis, following a 1.7% decline in the December 2011 quarter.
Over the past year to March new residential building work is down 8.7%.
Work done on new houses rose 0.2% to $6.14 billion while work done on new units fell 3.9% to $3.15 billion.
The value of alterations and additions to residential building fell by 5.5% over the quarter to be down 5.5% over the year to March.
“New residential building work done has now fallen for four consecutive quarters, while renovations work done has fallen for three consecutive quarters. Combined with leading indicators which show further weakness ahead, there is no doubt that the Australian home building industry is in recession,” says HIA senior economist Andrew Harvey. 
“As the residential building industry continues to contract, we are seeing real consequences for jobs, small business, the supply of new housing and rental costs. Governments can no longer ignore the negative impacts on employment, housing stress and Australia’s economy.” 
On a state-by-state basis when comparing the March 2012 quarter with the March 2011 quarter, the total seasonally adjusted value of residential work done fell by 14.8%in NSW, 0.8% in Victoria, 3.2% in Queensland, 8.5% in South Australia, 17.7% in Western Australia, 11% in Tasmania, and 2.8% in the ACT. 
In trend terms, the value of residential work done rose by 0.7% in the Northern Territory. 
Master Builders Australia was equally glum on the latest figures, with CEO Wilhelm Harnisch saying the statistics back up the findings of other surveys that show there is considerable uncertainty and reluctance amongst new home buyers.
“While today’s data is a look into the ‘rear mirror,’ forward housing indicators do not provide much optimism for a sustainable housing recovery taking place this year.
“The industry is anxiously awaiting the cumulative effect of four Reserve Bank rate cuts totalling 1.25% over recent months to kick in.
“The March ABS figures indicate the rate cuts from November and December 2011 haven’t had the effect they typically would have. The industry is relying on the effect from last year’s cuts, and the rate cuts in May and June this year begin to take hold.
“The March quarter statistics confirm the state of Australia’s two speed economy and the need for the Reserve Bank not to discount additional rate cuts,” he says. 
Non-residential building work slumped 4.1% in the quarter following a fall of 3.7% in the December 2011 quarter.
Overall, the seasonally adjusted estimate of the value of total building work done fell 2.8% to $18.7 billion in the March quarter, following a fall of 2.1% in the December 2011 quarter.
</body></html>

Value of new home building declines for fourth consecutive quarter in March: ABS

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]

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News