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The Australian housing market is showing signs of stabilisation after a period of softness and barring a global economic calamity, house prices should rise by around 4% to 5% per annum over the next two and a half years, according to ANZ. 
The report also expects a pick-up in currently weak levels of sales activity in 2013 due to low interest rates and the possibility of further rate cuts, encouraging first-home buyers back into the market.
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“In the absence of a sharp global economic downturn and escalating domestic unemployment, improving housing affordability, solid household financial positions and strong housing market fundamentals should support modest house price growth into 2013,” says ANZ in its July Australian Property Housing Chartbook compiled by economists David Cannington, Paul Braddick and Ivan Colhoun. 
“While previous structural and policy drivers have now been capitalised into house price growth, we expect prices to increase at a moderate 4% to 5% in annual terms by the end of 2014,” they say. 
The report notes the slowdown in sales activity, with home sales levels running at around 100,000 per month, well below the pre-GFC peak of 140,000 per month and tracking below the 120,000 per month recorded in 2009. 
“While auction clearance rates and days on market have shown some improvement more recently, they also remain well below recent peak levels, suggesting continued divergence between the expectations of home buyers and vendors,” says ANZ. 
“With ongoing softness in house prices and escalating uncertainty around the prospects for the global economy, the outlook for housing market sales continues to look weak over the second half of the year. 
“However, recent interest rate cuts and the potential for further rate cuts should drive improvements in housing affordability, eventually rousing market sales activity from the current lows, especially for first home buyers,” says ANZ. 
The report notes that with the exception of the smaller markets of Darwin and Canberra, house prices have weakened across all other capital cities in the year to June 2012. 
However, ANZ notes the extreme volatility in house prices in 2012 to date, particularly at the high end of the market. 
“House price falls from peak to May 2012 for the most expensive 20% of suburbs have been more than double price falls for remaining 80% of suburbs. This has most likely reflected the negative impact on house prices of increased volatility in equity markets and weak consumer sentiment,” says ANZ. 
An aggregation of housing data from the ABS, RP Data-Rismark and Residex shows that from their peak, house prices for the most expensive houses (the top 20%) have fallen 7.8% while those in the middle 60% have fallen 4.4% and the cheapest hoses (the lowest 20%) have fallen 4.5%.
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Despite weakening in recent months, the report notes that the Sydney dwelling prices (both houses and units) market has outperformed the other capital cities since the peak of the current price cycle in late 2010.
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ANZ attributes this strength to “the increasing pressure of stronger population growth on weak housing construction and a degree of resilience after an extended period of prior price underperformance in houses and especially units”. 
Sydney’s housing market has been assisted by having the biggest housing deficiency of all the other states – a shortage of four houses for every one built.
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Despite experiencing the largest falls over the past year, ANZ says Melbourne housing remains the least affordable across Australian capital cities. 
ANZ says that strong growth in WA household income and weak house price growth has aided Perth’s housing affordability, with the city now ranked sixth least affordable across Australian capital cities compared with equal first least affordable before the GFC.
 
The report also notes an improvement in housing affordability driven by softening house prices, rising household incomes and lower mortgage rates, which ANZ says has been reflected in improved consumer expectations of the best time to buy a house and lower mortgage delinquency rates through 2012. 
“Previous episodes of improving housing affordability (in the early and mid-’90s) were largely driven by significant reductions in interest rates (and steady growth in household incomes). 
“With interest rates at relatively low levels and expectations of moderate growth in household income, improvements in housing affordability through 2012-13 are expected to be driven more by household income gains and weaker house prices than in the past,” says ANZ. 
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Australian housing market stabilising, with 5% capital growth expected to 2014: ANZ

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Melburnians may have double the reason to either love or loathe the city skyline in a few years’ time, with the site for a proposed sister skyscraper to the post-modern Eureka Tower listed for sale.
<img src="/images/stories/2012/07/skyscraper2.jpg">
Source: <a href="https://skyscrapercity.com/" target="_blank">Skyscrapercity.com</a>
The 2,642-square-metre site at 70 Southbank Boulevard is directly across the road from the Eureka Tower and has been listed with a $25 million price tag.
It is being sold via an international public expressions of interest campaign managed by CBRE’s Mark Wizel and Joshua Rutman closing on August 8.
The proposed 226-metre, 72-storey tower is designed by Nonda Katsalidis of <a href="https://www.google.com.au/search?rlz=1C1CHKB_en-GBAU429AU429&amp;sugexp=chrome,mod=2&amp;sourceid=chrome&amp;ie=UTF-8&amp;q=2011101351927" target="_blank">Fender Katsalidis</a> architects, who also designed <a href="https://www.propertyobserver.com.au/developments/onwards-and-upwards-in-kuala-lumpur-for-fender-katsalidis-after-eureka-moment/2011101651945" target="_blank">the controversial Eureka Tower.</a>
It will be quite a bit shorter than the Eureka Tower, which has 92 floors and is 300 metres high.
The $400 million design incorporates a gold strip rising up above to the very top, complementing the shiny gold cap on top of the Eureka Tower.
<img src="/images/stories/2012/07/skyscraper3.jpg">
The site is owned by Katsalidis and Adrian Valmorbida from the Valmorbida family, who have put it up for sale almost a year after receiving a planning permit for the tower.
They had to battle with the City of Melbourne to gain approval for the building, which is set to feature 532 apartments, six levels of office space, a fresh food market and ground-floor retail.
“Eureka Tower, which 70 Southbank Boulevard, has been replicated on from an architectural perspective is well known as part of the fabric of life in central Melbourne,” says Katsalidis.
“We wanted to re-create elements of what we had achieved at Eureka and apply it to 70 Southbank Boulevard. It’s a brilliantly located site with a huge variety of optional uses and tremendous potential for a developer to shape Melbourne’s skyline with their own brush."
The site is the former head office of international explosives and fertilising giant Incitec Pivot and is currently in use as office accommodation.
Wizel says significant interest is expected from both local andoff shore developers “that recognise the difficulty in obtaining large corner sites that provided potential for apartment projects with substantial vistas in all directions”.
The site is bounded by City Road, Southbank Boulevard and Fawkner Street and has 150 metres of street frontage.
“Early developer interest has centred around this site housing the next major residential project on the edge of the Melbourne CBD,” says Wizel.
“Sites of this size in the luxury precinct of Southbank are not readily available for acquisition and, as a result, we are anticipating strong interest from local and overseas buyers, with a particularly high level of enquiry expected from Singaporean, Malaysian and mainland Chinese developers, all of whom will be attracted by the site’s proximity to the Crown Casino complex, Melbourne’s arts and cultural precinct as well as Southgate and the sporting precinct of the MCG, Rod Laver Arena and AAMI Stadium.”
Wizel says Asian developers have invested $450 million in Melbourne development opportunities over the past 18 months “in order to diversify into a proven residential market that is sought after by owner occupiers, investors and tenants”.
Rutman says it is rare for a site that has the potential for Nonda Katsalidis-designed, permit-approved residential tower to come to the market for public competition.
Katsalidis says the partners are putting the property up for sale to allow them to “go in different directions”.
“I know that both our firm Fender Katsalidis and the project managers Stralliance would be happy to remain involved in some capacity in the project moving forward, as we believe it will be Melbourne’s next iconic residential tower,” says Katsalidis.
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Site for Eureka’s more golden sister tower in Melbourne’s Southbank listed with $25 million price tag

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Construction of two commercial towers at Barangaroo will now commence after Lend Lease received commitments totalling $2 billion from cornerstone investors on the Sydney Harbour project.
The funding forms part of a new commercial wholesale open-ended property trust, which Lend Lease will manage.
Each tower will take about three years to build, and Lend Lease anticipates net facing rents of about $1,000 per square metre on average with a 20% incentive.
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Actual rents will vary dependent on factors such as location in the building and lease term, and there will be no rental guarantees.
Construction of the perimeter wall has now been completed.
The developer has raised $1 billion from Canada Pension Plan Investment Board (CPPIB) and a combined $500 million from the Lend Lease-managed Australian Prime Property Fund Commercial (APPF Commercial) and two existing APPF Commercial investors, First State Super and Telstra Super.
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Alongside these investments, Lend Lease will invest up to 25% or $500 million in the first two towers to be progressively drawn down over the development period.
The announcement of the funding follows soon <a target="_blank" href="https://www.propertyobserver.com.au/office/westpac-and-kpmg-to-take-up-more-than-70-in-two-of-lend-leases-barangaroo-south-towers/2012062255233">after Lend Lease announced on June 22 that it had secured tenants for the first two commercial towers</a>, with Westpac agreeing to lease around 70% of the commercial floor space in the first tower to be commenced and KPMG and Lend Lease to occupy 75% of the second tower.
Discussions with other tenants on the third proposed tower will progress over next 12 months, and depending on the outcome of these discussions, it could be launched over this time frame.
Speaking to investors today Lend Lease CEO Steve McCann described the funding as a “very significant milestone”.
“The original assessment was for one tower in first phase. We are very pleased to have funding and leasing agreements for two towers.
“Now all we have to do is build it,” says McCann.
“Investors should have complete confidence in us, since we have built 30% of the Sydney skyline,” he says. 
McCann says investors have also expressed interest in investing in the third commercial tower proposed for the site. 
<img src="/images/stories/2012/07/barangaroo1.jpg">
McCann says that having raised the funding and secured tenants, the developer can now turn to the residential component of Barangaroo South.
“We anticipate there will be probably be residential pre-sales in the next two years,” he says.
Hotel discussions with the NSW government are expected to be finalised in the next quarter.
“We are not in a hurry on the hotel development. We first have finalise where it will be located,” McCann says. 
“We are in discussion with a number of commercial operators about the hotel.”
Lend Lease has about $20 billion in urban regeneration projects on its books including Barangaroo , the RNA showgrounds in Brisbane, the Waterbank project in Perth and projects in London.
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Barangaroo South construction set to begin as Lend Lease raises $2 billion 

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The outer south-east Melbourne suburb of Clyde is not the epicentre of a so-called oversupply of houses in the city’s outer suburbs, but instead the result of new housing projects coming to market at the same time in what was farmland just two years ago.
Figures compiled by SQM Research show that the number of residential listings in postcode 3978 (Clyde, Clyde North and Cardinia) have risen a whopping 316% to 1,270 over the year to June, the biggest increase of any postcode as pin-pointed by The Sunday Age, which taken at face value would suggest a major problem.
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The new house and land package suburb is about 50 minutes south east of Melbourne and was one of a number of market gardens localities rezoned in 2010.
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Local estate agents operating in the area are not concerned.
Paul Rogers from O'Brien Real Estate Narre Warren is selling blocks of land in Villawood’s Pasadena community in Clyde and says agents are looking for new stock all the time to satisfy demand.
Pasadena is a 338-lot residential community near Casey Fields, which launched in July last year. The project offers blocks from 388 square metres up to 668 square metres, priced from around $220,000 to $245,000.
Other local projects include Simonds Homes Cascades on Clyde Estate and Stockland's Selandra Rise in Clyde North.
Rogers says he clocked up 35 residential sales over the past month – “a pretty good figure”.
He says house sales have been around the $330,000 mark but he has recently sold a house-and-land package on a 1.2-hectare block for $1.1 million.
“There are a lot of vacant land and house and land packages not yet build, which is probably where the big rise in listings comes from,” says Rogers.
Another issue, he says, could be that developers are advertising blocks of land as house-and-land packages due to confusion around stamp duty rules, which he says is a grey area.
SQM Research managing director Louis Christopher says the listing figures do not include vacant land, but do include house and land packages.
"We look at them pretty closely," he says. "These are listing that are advertised for sale."
Rogers says he is selling to a broad cross-section of people, including those who are downsizing, older buyers, young couples and upgraders.
He says the suburb has a developing business hub of its own and is also well-serviced by trains into the CBD.
In April a new train station opened at Cardinia on the Pakenham line, which Rogers says is a “one-hour relaxed” commute into the city.
Mark Leonard from First National Real Estate Neilson Partners Narre Warren, who is selling new four-bedroom houses in Clyde around the $370,000 mark, says things have slowed down in winter, but he expects a pick-up in summer.
He says because Clyde is a new estate, the SQM figures could be “statistical abnormalities” because there has been a lot of land developed over the past six to 12 months.
Most buyer interest, he says, comes from second- and third-home buyers, with a little bit of first-home buyer interest ahead of the Victorian government $13,000 first-home bonus ending on June 30.
In addition to train and bus services, the suburb has a nearby shopping centre and primary and secondary schools.
“It could do with some more bus services,” says Leonard.
He says a price of betwen $400,000 to $450,000 would secure a three- or four-bedroom house with a small garden.
These comments are given weight by a March quarter 2012 report by Oliver Hume, which shows that Cardinia only has about six months of land supply compared, with more than a year and a half of supply in Mitchell - Wallan / Beveridge area to the north of Melbourne and more than 10 months’ supply in Melton to the west.
According to Oliver Hume, there are 10 new residential projects underway in Cardinia, comprising 10% of all projects in Melbourne, with an effective median land price of $177,000.
The UDIA and HIA have also rejected claims of a glut in residential listings in outer suburbs.
Clyde’s status was highlighted in SQM Research figures which show a 6.1% monthly jump in Melbourne residential listings to over 55,000 in June with 35,000 of these listings on the outer fringe.
After Clyde, the suburb with the second biggest rise in listings in the year to June 30 was Epping to the North, with a 168% rise to 1,260 followed by Taylors Hill, Sydenham and Hillside (post code 3037) in the north west with an 84% rise to 1,081 listings, the Sunday Age reported.
Hoppers Crossing, Tarneit and Truganina (post code 3029) in the West have the highest number of listings at 4,048 – a rise of 54% for the year to June.
 <a rel="shadowbox" href="/images/stories/2012/07/sqmjuly91.gif" title="Click to enlarge">For advice on buying your dream land package, </a><a _cke_saved_href="https://www.propertyobserver.com.au/short-course/free-short-course-10-keys-to-buying-your-dream-land-package" target="_blank" href="/property-observer">sign up for our free short course</a>.
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Oversupply figures paint distorted housing picture of outer-Melbourne suburb of Clyde amid Melbourne’s 55,000 listings

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Markedly fewer economists expect the Reserve Bank to cut interest rates in August following last week’s decision to keep the cash rate unchanged at 3.5% at the July 3 meeting.
Of the 25 economists surveyed by Bloomberg on July 6, just over half – 13 out of 25 – expect the RBA to cut rates on August 7.
This compared with more than two-thirds of economists (19 out 28) surveyed a week before the July 3 meeting who said the RBA would cut rates on August 7.
Among the four major banks, ANZ has shifted from expecting a rate cut in August to now anticipating rates to remain on hold. The three other major banks continue to expect the RBA to cut the cash rate in August.
The RBA monetary policy decision statement of July 3 appears to have created more uncertainty about an August rate cut.
The statement noted a “more subdued international outlook than was the case a few months ago” and said that the local economy “continued to grow in the first part of 2012, at a pace somewhat stronger than had been earlier indicated”.
It noted, however, that housing remained “subdued”.
The June statement – following the 25-basis-point cut in June – spoke of a “more uncertain international environment”, deteriorating financial market sentiment and declining house prices.
Looking beyond August, the picture is cloudier about where interest rates may be heading.
The median expectation among the 25 economists survey by Bloomberg is for just one more rate cut over the next 12 months to a cash rate of 3.25%.
However, there is a wide divergence of opinion, with a forecast range from 2.5% to 4% by the end of the financial year. Of the 25 economists surveyed, 13 expect the cash rate setting to be 3.25%, which would mean just one more rate cut.
Westpac is still forecasting a cash rate of 2.75% by year end. According to Westpac chief economist Bill Evans, a cash rate of 2.75%  would mean an average standard variable mortgage rate of between 6.05% and 6.5%, given the current gap in the cash rate and bank mortgage rates.
There is even wider divergence among economists polled by Bloomberg after June 2013. While the median remains at 3.25%, just five economists are forecasting this to be the cash rate, with forecasts ranging from a cash rate of 2.5% to 4.5%.
A separate Saturday Age survey of 22 economists compiled by Tim Colebatch forecasts an average cash rate of 3% by June 2013, equating to two 25-basis-point rate cuts.
Out of the 22 economists polled, 12, expect a cash rate of 3.25% by the end of the financial year, a view held by noted chief economists Alan Oster (NAB), Shane Oliver (AMP Capital) and Paul Bloxham (HSBC).
By far the most bearish is Neville Norman, associate professor in the department of economics at Melbourne University, who forecasts the cash rate to rise to 4.5% by year end.
Forecast of 22 economists polled by Saturday Age:
2.75% Burchell Wilson (ACCI), Des Moore (Institute for Private Enterprise), Andrew Hanlan (Westpac), Julie Toth (Australian Industry Group), Tom Kennedy (JP Morgan)
3% Brad Crofts (Australian Workers Union), Richard Gibbs (Macquarie Bank), Peter Jones (MBA)
3.25% Saul Eslake (Bank of America Merrill Lynch), Richard Robinson (BIS Shrapnel), Chris Caton (BT Financial Group), Michael Workman (CBA),  Andrew Boak (Goldman Sachs Australia), Andrew Harvey (HIA), Paul Bloxham (HSBC), Alan Oster (NAB), Hans Kunnen (St.George), Annette Beacher (TD Securities),
3.5% Jakob Madsen (Monash University)
4.5% Neville Norman (Melbourne University)
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Certainty of August rate cut dims as economists home in on 3% cash rate forecast by June 2013

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The Northern Territory $10,000 BuildBonus available to home buyers building or purchasing a new home has been extended to the end of this year.
This the second time the NT government has extended the deadline for the handout, which applies to new homes up to a value of $600,000.
It was originally due to end on December 31, 2011, before being extended to June 30 this year.
The NT government also offers first-home owners stamp duty concession of up to $26,730 (the duty owned on the first $540,000 value of a property) and no land tax.
NT Treasurer Delia Lawrie says the Henderson government “continues to help more families, couples and singles into their own properties with the most generous housing incentives in Australia”.
“Whether it is your first home or an investment property, BuildBonus provides a one-off, $10,000 grant to all home buyers purchasing or building a new home to the value of $600,000,” she says.
“As well as giving first-home buyers a leg up, the scheme promotes investment in the housing sector, stimulating our construction sector and creating more rental housing stock.
“The territory’s strong economy means strong demand for housing, and the Territory government is meeting the challenges of growth with record land release and generous support for homebuyers.
“Right now there is land available to purchase across Palmerston, as well as over 2,000 units shovel-ready across Darwin.”
Further information on BuildBonus can be found on the <a href="https://www.housingnt.nt.gov.au" target="_blank">NT government's website.</a>
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Northern Territory government extends $10,000 new home bonus to December 31, 2012

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Upset Provident Capital debenture holders have expressed shock at the sudden collapse of the mortgage fund manager as it emerges that 85% of loans their investments funded were six months or more in arrears.
The collapse of fund management and mortgage lender Provident Capital seemingly has the hallmarks of other recent collapses including Elderslie Finance Corporation, Westpoint, Storm Financial,  and Estate Mortgage/Pyramid Building Society.
All attracted small investors with promises of high returns. The Provident investors were lending to developers with high risk, albeit offering first mortgages that totalled $97 million over the projects.
A Federal Court order remains in force that prevents the media naming any of the specific failed property projects that Provident lent against.
But as word gets out about the receivership of Provident Capital, shocked debenture holders have been contacting Property Observer concerned about their investments.
“I had absolutely no idea that the company was struggling, and I feel betrayed by the lack of information given,” said one debenture holder.
Another investor said her investment would be considered “small” by Provident’s terms, but was a “huge” one for her, “as I have very little money”.
Provident says that as of December 31, 2011 there were already 12 loans in the portfolio worth more than $2.5 million (aggregating to $69 million) and eight borrowers who owe more than $4 million each (aggregating to $62.million).
The April information booklet also reveals that:
•             Legal proceedings had commenced against eight loans in the fund with an aggregate amount owed of $6.5 million accounting for 6.7% of the loan book.
•             As of December 31, 2011, the company’s equity capital ratio was 2.73%, compared with ASIC’s benchmark ratio of 20%.
•             The arrears rate across the entire $176 million loan portfolio was 59.4% by value.
•             Provident was heavily exposed to just two markets. Out of a total of 55 loans in the fixed interest term portfolio, 30 were for properties in NSW worth $51.2 million with 15 in Queensland totalling $38.9 million.
The information booklet reveals that Provident stopped accepting new debenture holders after March 31 but would continue to accept reinvestments (rollovers) including interest from existing investors.
Of the $96 million invested by debenture holders, $63.5 million worth of investments mature between March and December 2012, $24.6 million between 2013 and 2017 and $7.6 million beyond 2017.
The receivers have expressed a hope of enabling a "meaningful" return for the 3500 investors.
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Collapsed Provident Capital debenture holders shocked as 85% of loans were six months or more in arrears

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The construction industry continued to contract in June, with the biggest decline recorded in the building of new apartments, according to the Australian Industry Group Australian (AI Group) Performance of Construction Index. 
 
The overall index, compiled in conjunction with the Housing Industry Association (HIA), remained broadly unchanged at 34.8 and in steep contraction given that a reading of 50 or below indicates a contraction in activity. 
The index has now been in contracting for 25 straight months, reaching its lowest reading of 28.9 in February 2009.
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The apartment building sub-sector index fell from 26.7 in May to 21.8 to be the weakest sub-sector, recording its steepest fall in 10 months. 
Both residential and commercial construction sub-sectors remained “deeply in “negative territory in the month. 
"The residential and commercial construction sub-sectors continue to be a drag on overall business activity, with lack of demand and access to finance both holding these important sub-sectors back,” says Peter Burn, director of public policy at Ai Group. 
“Engineering construction (down to a reading of 39.9) is stronger particularly due to mining-related projects but the overall construction sector continues to languish," Burn adds. 
HIA chief economist Dr Harley Dale noted the “steeper contraction in new orders for detached houses and apartments”, which he says “unfortunately confirm that new home building conditions will deteriorate further in the second half of 2012”. 
“Residential construction activity looks set to trough at GFC-equivalent levels and yet we’re not in the midst of the GFC. That is a concerning update on Australia’s economic prospects and policy makers should heed this clear signal for policy action," Dale says. 
The results of the index also reveal that poor demand and falling workloads impacted heavily on activity (down from 30.2 to 28.9), new orders (down from 33.7 to 33.4) and employment (up marginally from 38.4 to 38.7) in June. 
Engineering construction remains the strongest sector despite falling by 1.4 points to 39.9 in June.
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Apartment construction activity records sharpest fall in 10 months in June: AIG/HIA construction index

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Mortgage fund manager Provident Capital was signing on small investors to its fixed-term mortgage fund with promises of returns above 9% in the months before it was placed in receivership yesterday.
Receivers from PBB have taken over the running of the company due to concerns debenture holders could be left short-changed.
Property Observer understands that 3,500 small investors have about $30,000 each invested in fixed-term products that mature at different times, with fears that Provident could run out of money to pay investors with later maturation dates.
The $120 million fund is invested in first mortgages covering residential, commercial and rural properties principally for property development.
In the December 2011 newsletter, Provident Capital managing director Michael O’Sullivan told clients: “We have recently launched a ‘lock in your rate’ campaign for our three-year and five-year fixed term investments, so that you can take advantage of our higher rates of returns before they are reduced.”
As of December 1 2011, Provident was offering new investors an annual return on maturity of 9.2% for a three-year fixed interest term and 9.55% for a five-year term.
<img src="/images/stories/2012/07/provident2.jpg">
In the December letter O’Sullivan added that Provident had a “proud track record of meeting all our investor payments on time, every time, there’s never been a better time to lock in your rates and take another fresh look at Provident Capital”.
In the same newsletter, Provident advertised its monthly income fund as offering an average annual return of 10.61% over the previous 12 months to October 2011 as well as it having previously been voted best-performing mortgage fund by Morningstar.
In its previous September newsletter, O’Sullivan told investors Provident “continues to go from strength to strength” and highlighted its “proud track record of meeting all our investor payments on time, every time during this entire period”.
Six months, later, in an information booklet published in April this year Provident said that as of December 31  the arrears rate across  its $176 million loan portfolio was 59.4% by value, of which the arrears rate for the fixed term investment funded component was 90.2%, "much of which was more than 180 days in arrears".
The lender continued to advertise its low-doc lending products through the mortgage broker channel this year, with an advertisement appearing on page six of Mortgage Professional Australia’s June 2012 issue.
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The ad says Provident is offered low-doc non-conforming loans of up to $1.5 million for residential, commercial and rural purchases and promises brokers weekly commissions and no-commission claw-backs.
Non-conforming loans are generally provided to borrowers with poor or impaired credit history.
SQM research withdrew its rating and report of the Provident Capital Monthly Income Fund on June 14 a day before Provident’s $120 million debenture fund was frozen by federal court order.  The monthly income product is a seperate product to the debenture offering.
SQM withdrew its rating after downgrading the fund from 3.75 out of five to 3.25 in April, “a direct result of ongoing deterioration in the manager’s financial position and a lack of satisfactory communication from the manager on the current status of the responsible entity managing the monthly income fund”. 
SQM managing director Louis Christopher said at the time “the ongoing decline in the financial health of its manager cannot be ignored” 
A rating of 3.25 indicates that “caution is required”. 
On January 6 SQM had upgraded its rating of the fund from 3.5 to 3.75, a “good” rating and suitable for inclusion on investors’ approved product list - based on financials to June 30.
Christopher tells Property Observer SQM acted to downgrade the rating of the monthly income fund "the moment" it became aware of problems at Provident.
Provident results for the six months to December 31 (released in April 2012) reveals a loan portfolio worth $176 million
There are 95 residential loans worth just under $100 million, with 24 commercial loans worth $22 million and 17 rural loans worth $33 million.
The company made a half-year loss after tax of $9 million compared to profits of $800,000 in the previous corresponding period.
“The current economic climate presents a number of challenges. In particular, it is taking longer to recover all amounts owing where loans are in arrears and property values may not be sufficient to repay the amount owing,” says Provident
As of December 31 2011, the company’s equity capital ratio was 2.73% as compared to the benchmark ASIC ratio of 20.
The booklet notes that the “loans are designed to meet the needs of borrowers who do not fit the lending criteria of Australia’s traditional financial institutions or who simply choose not to borrow from them”.
 The Australian reported PPB Advisory partner and joint receiver Marcus Ayres as saying it would seek to recover funds by repossessing houses of defaulting borrowers and slowly releasing them into the market or by selling the defaulting loans if an investor could be found.
"This won't be a fire sale and we won't be putting all these properties out on to the market at the same time," Ayres said.
Provident has raised more than $1 billion of investor funds for investment in portfolios of registered first mortgages since 1998.
Have you invested in Provident Capital debentures or do you have a Provident Capital mortgage? Send an email to Property Observer with any news or thoughts:<a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Provident Capital signing on new mortgage fund investors with 9% plus on offer in months prior to receivership

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Corporate watchdog ASIC has continued its crackdown on mortgage and savings advertised offerings that it feels may mislead consumers.
Having required <a href="https://www.propertyobserver.com.au/industry-news/asic-demands-equal-prominence-for-mortgage-comparison-rate-in-online-mortgage-advertising/2012061955177" target="_blank">mortgage lender Resi</a> to give equal prominence to mortgage comparison rates, ASIC has now prompted RAMS to change how it advertises its 5.75% savings account, which is issued by parent company Westpac.
ASIC Commissioner Peter Kell says advertisements should give balanced information to ensure the overall effect creates realistic expectations about a financial product or service.  He reminds promoters of financial services that ASIC will be regularly reviewing ads and will take action when they don’t comply with the law.
The RAMS 5.75% savings account includes a bonus 0.8%, which is only payable subject to a number of conditions being met including making a minimum deposit of $200 per month and making no withdrawals in the month.
<img src="/images/stories/2012/07/ramssaver.jpg">
The ASIC press release noted its concerns surrounding the online, television and outdoor ads, which featured a prominent headline claim offering a 5.75% interest rate, followed with smaller statements that it included a “0.8% p.a. Bonus” and “monthly deposit conditions apply”.
ASIC notes “concerns that ads promoting the online savings account were potentially misleading or likely to mislead”.
“ASIC was concerned that the ads left out important information and failed to give enough prominence to the conditions associated with the 0.8% bonus.
“Of particular concern to ASIC was that the ads did not disclose that in order to achieve the monthly bonus rate, consumers could not make any withdrawals from the account during the month,” said ASIC.
A spokesperson for RAMS says the company responded promptly to ASIC’s concerns and no customers have been adversely affected.
“ASIC advised us of some concerns relating to the prominence and completeness of conditions to qualify for the high bonus variable rate of 5.75% p.a. in our advertising.
“RAMS moved quickly to address these concerns by promptly amending all advertising including additional text and voice over to specify the conditions (such as no withdrawals during the month) more prominently in television commercials,” says a spokesperson.
ASIC recently released a   Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance.
“ASIC’s guidance will help industry participants understand their obligations but we are also sending a message that we will take action in response to misleading ads for financial products and services,” says Kell.
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ASIC warns mortgage lenders over misleading advertising

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

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