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A Sony Bank online mortgage lending operation could be a profitable venture in Australia but does not pose an immediate threat to the market share of the major banks, according to analysts at Nomura.
This follows reports that <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/tokyo-based-sony-bank-investigating-online-mortgage-lending-in-australia/2012070355392">Sony Bank has been granted permission by APRA to undertake a feasibility study</a> into launching an offering in Australia.
Nomura analyst Victor German says Sony Bank's success in profitably offering mortgages in the Australian market “rests on its ability to fund growth using Australia dollar-denominated deposits in Japan”.
“At the current rate of around 2% (which Sony offers in Japan for Australian dollar one-year term deposits), Japanese banks can generate returns of around 50%, while with a 3.5% [Australian cash] rate, returns are lower but still remain attractive at around 20%,” says German.
German says a bank like Sony would pose a small risk to the major banks – “even if successful, we believe it will take some time for the Japanese banks to take market share”.
However, if Australian dollar-denominated deposits in Japan become a more popular product, German says Japanese banks “could provide a cheaper alternative in the Australian mortgage market, which may result in pricing and market share pressure”.
“This however, rests on both Japanese households and the regulator being comfortable with households taking on foreign exchange rate risk,” he says.
According to German, a more profitable option than raising deposits in Japan would be for the bank to purchase residential mortgage-backed securities (RMBS).
“We estimate that return on capital would be twice as high if banks buy RMBS instead of directly offering mortgages, predominantly due to more favourable capital treatment for AAA-rated paper,” says German.
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Sony Bank online mortgage lending could be profitable in Australia: Nomura

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Fund manager and non-bank lender Provident Capital Limited has been placed in the hands of receivers PBB on the orders of the Federal Court.
 The court order follows Provident’s $120 million fixed interest debenture fund being temporarily frozen last month with 3,500 small-time investors having an average of $30,000 invested in the fund.
 A report last month by PPB found a $28 million gap between Provident’s property valuations and PPB’s assessments.
 The court appointed Phil Carter, Tony Sims and Marcus Ayres of PPB Advisory as receivers following an application by Australian Executor Trustees Limited (AET), a trustee for Provident Capital debenture holders.
AET expressed concerns in court, supported by ASIC, that there a “deficiency in [Provident’s] net tangible assets available to meet the claims of debenture holders”.
 Property Observer understands the receivers will be seeking to ensure an equitable return for all investors which have investments that mature at different points in time.
 A meeting of debenture holders is scheduled to take place in a month’s time.
 The appointment of receivers was contested by Provident Capital.
 AET began its court proceedings two weeks ago.
Provident operated as a registered managed investment scheme raising money from investors through fixed-term investments, a high-yield mortgage fund a monthly income mortgage fund.
The money raised was then on-lent to property developers – mainly in NSW and Queensland, with News Limited reporting that these including Warren Anderson, Donna Batiste, and Paul Hanna.
 Many of these mortgages have not performed while the assets secured against them have also devalued in some cases.
Provident provided a range of mortgage products and positioned itself as specialist lender in the low-doc space.
According to receivers PBB, there are 3,500 debenture holders who have invested in Provident Capital’s debenture product. 
Half-year results to December 31, 2011 show that Provident Capital made a $9 million loss with its equity capital ratio 10 times lower than the benchmark set by the corporate regulator.
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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Fund manager and mortgage lender Provident Capital placed in receivership following court order to protect small-time investors

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There's some good news for retail landlords, with retail sales up a solid 0.5% in May, slightly better than the 0.2% gain expected, according to ABS figures.
Westpac attributed the better-than-expected figures for May in part to the impact of lower interest rates and government support payments to families.
“The May result suggests rising incomes and interest rate cuts provided more of a lift despite the muted response from consumer sentiment and signs of ongoing cautious behaviour,” says Westpac.
“Rate reductions and fiscal payments ('schoolkids' bonuses totalling $2.1 billion) will give support in June-July, suggesting the second-quarter retail result should be a reasonable one.”
All states recorded monthly rises led by WA (up 1.1% for the month).
“While retailers and the consumer sector more broadly have had a better than expected start to 2012, many have been under intense pressure over the last few years and will still be experiencing pressures on profitability from an aggressive pricing environment,” noted Westpac.
“Most notably, the sector has been shedding staff fairly aggressively, with employment across the broader consumer sector (retail plus consumer services sectors) down an alarming 2.7% in the year to May.”
ABS revisions resulted in the April's 0.2%  fall revised up to a 0.1% rise and March's 1.1% increase was marked down slightly to a 0.9% gain, “smoothing the recent monthly pattern of spending but leaving in place a 0.4% trend rate of growth – a 4.7% annual pace (10-year average is around 5%)”.
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Rate cuts and schoolkid bonuses help lift retail sales by 0.5% in May: Westpac

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There has been a marked decline in the proportion of Gen Y borrowers who expect to have to ask their parents to help them buy their first home, according to the 2012 National Savings and Debt Barometer compiled by RaboDirect.
Just over a quarter (26%) of Gen Y respondents surveyed in May this year by RaboDirect said they would need to get assistance from their parents to purchase a house or apartment, compared with more than a third (35%) in 2011.
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Generation Y refers to those people born in the late 1970s and early 1980s. 
This increase in first-home buyer confidence comes with interest rates falling and affordability improving.
The most recent rate cuts have sparked a rush of new home buyers in Melbourne and Sydney’s suburban housing estates and apartment market seeking to claim government handouts and rebates before the June 30 cut-off date.
From October 1 NSW first-home buyers will be incentivised with a $15,000 handout from the O’Farrell government if they purchase or build a new home.
According to the RaboDirect, the findings suggest that more Gen Ys are feeling more financially independent from their parents – “possibly helped along by a softer housing market”. 
The survey also found a small rise in the proportion of baby boomer parents (those born around 1946) who expected to provide financial assistance to their children to buy their first house – 18% to 20% – but the majority (57%) say they won’t help.
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The propensity of parents being less willing to help their children financially and spend more on themselves has led to the term “SKIers” being coined, an acronym for “spending the kids’ inheritance”.
The survey found that 30% of baby boomers expect to retire with a mortgage.
This compares with 14% of Gen Y borrowers and 18% of Gen X borrowers who expect to retire with a mortgage.
Renee Amor, spokesperson for RaboDirect, says the softer housing market sounds a warning for boomers relying on the property market to fund their retirement.
“It has been traditional in this country to expect to retire with the family home paid off and increasing in value.
“It’s been seen as the ultimate safety net and often used to help younger family members get their start in the property market as well as funding retirement lifestyles,” she says.
“Our survey findings directly contradict this expectation and are of real concern in an environment where housing values are slipping and our population is ageing,” she says.
This sentiment is reflected in gap between parent’s concern about their children being able to buy their first home and the desire to help them. 
Around 22% of baby boomers agree strongly that they are concerned about how their children will afford their first home, but only 13% agree strongly that they would like to help.
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The National Savings and Debt Barometer was conducted by researchers RFi on behalf of RaboDirect and was a national survey of 2,355 Australians aged 18-65.
For advice on buying your dream land package,<a target="_blank" href="/news"> sign up for our free short course.</a>
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Fewer Gen Ys expect to ask their parents for help in buying their first home: RaboDirect

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Perth and Brisbane will be the next hubs of commercial development activity between now and July next year, according to Jones Lang LaSalle, after commercial sales spending declined 13% nationally in the first six months of 2012. 
Jones Lang LaSalle analysis shows that Australian investment volumes for office, retail and industrial for the first half of the year (as at June 21) reached $4.6 billion, compared with $5.3 billion for the first half of 2011. 
Despite the 13% drop, John Talbot, managing director of the investment and advisory group at Jones Lang LaSalle, says investment volumes had held up well “despite the uncertain global environment”. 
“Office markets have proved resilient despite the caution amongst investors and occupiers.  Sales volumes recorded for the first half of this year have almost reached the volumes recorded in the first half of 2011,” he says. 
Office sales declined from $2.47 billion to $1.95 billion, with retail the strongest performer, recording higher volumes in the first half of this year compared with last. 
There were $2.07 billion of retail sales recorded in the first half of the year (as at June 21), up from $1.8 billion in the first half of 2011. 
This figure was helped by <a href="https://www.propertyobserver.com.au/retail/perron-group-to-acquire-half-stake-in-three-centro-centres-for-%24690-million-setting-post-gfc-commercial-retail-record/2012051754740" target="_blank">the Perron Group paying a post-GFC record in May of $690.4 million</a> for a 50% ownership stake in three of Centro Retail Australia’s flagship regional shopping centres, with the transaction negotiated by JLL’s Simon Rooney.
 
“In terms of the outlook, the reduction in the cost of debt for well rated groups is an interesting dynamic.  It is now accretive for listed vehicles to buy office assets in Australia,” says Talbot. 
“For wholesale funds, the reduction in the cost of debt has lowered the weighted average cost of capital and makes property investment attractive. 
“One of the hurdles in the market is the lack of prime-grade stock. A development cycle would create a supply of product, however there is limited development activity. 
“The space market conditions point towards development activity in Brisbane and Perth over the next six to 12 months. We expect that this will create fund-through opportunities,” he says.
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Perth and Brisbane to be next hubs of commercial development after national sales investment decline: Jones Lang LaSalle

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Westpac is sticking with its forecast of three more rate cuts before the end of the year, taking the cash rate to 2.75% but says the RBA will need a low quarterly inflation update – due on July 27 - to move back onto its easing path.
The bank expects a 25-basis-point rate cut in August, another one in September and one more in December.
“With borrowing rates still only described as  ‘a little below their medium-term averages’, and given the range of economic threats associated with the global economy, a high Australian dollar, and cautious business and households, our view is that rates need to go down further,” says Westpac senior economist Huw McKay.
“However, our reading of today’s statement indicates that on the basis of information currently to hand, the RBA would prefer to stay on hold and assess the impact of the ‘material easing’ it has already delivered.
“For the bank to move back onto an easing path in the short term, it will need more than an accommodative (low) inflation update later this month.
“It will need further evidence of weak global growth and a rise in financial tensions; and further proof that there has been an intensification of precautionary behaviour by firms and households at home. That is a high threshold to reach within four weeks, but recent history has shown that confidence can unravel extremely quickly.”
McKay says the latest statement reveals the bank to be “far more relaxed on the domestic economy” and has a more positive outlook on international markets.
“On the international front, whereas in June the governor assessed that ‘financial market sentiment has deteriorated’; that ‘spreads have increased’ and ‘long term interest rates faced by highly rated sovereigns have fallen to exceptionally low levels’ he now notes that ‘Financial markets have initially responded positively to signs of further progress towards longer-term sustainability in European financial affairs ...’ while ‘Capital markets remain open to corporations and well-rated banks’,” says McKay.
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Westpac still expects three more RBA cash rate cuts by end of the year

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Remarks made by RBA governor Glenn Stevens in his monetary policy decision statement today after the central bank kept the cash rate on hold suggest the central bank is not predisposed to cutting the cash rate again soon, says Brian Redican, senior economist at Macquarie Bank.
“As a result of the sequence of earlier decisions, there has been a material easing in monetary policy over the past six months. At today's meeting, the board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate,” Stevens said in his statement.
Redican says there is “certainly no hint that the RBA was eagerly awaiting the upcoming CPI data (out on July 25) to confirm that inflation was low or that it would be closely monitoring international developments to ensure that the stance of policy remained appropriate”.
Ahead of the rate decision, 18 out of 28 economists polled by Bloomberg had forecast a rate cut at the next RBA meeting on August 7.
But Redican says it is Macquarie’s view that “the popularity of an August rate cut with economists could just be an artefact of recent history”.
“The market has had very aggressive rate cuts priced in over 2012 and the RBA's decision to cut rates by 50bps in May was perceived as confirming that trajectory.
“Suddenly, the debate was not whether the RBA would cut again in June, but whether they would cut by 25bps or 50bps (and possibly even more). And it was during this period that most people pencilled in an August rate cut.
“Since then, the RBA governor has delivered markets a reality check. The minutes of the June board meeting revealed that it was a toss of the coin whether the RBA would cut at all in June. And the justification for cutting in June – taking out some insurance against the risk of a European implosion – turned out to be a policy loosening for something that failed to materialise,” Redican says.
“That doesn't mean that such a move was a mistake. But presumably it does raise the bar for further rate cuts,” says Redican.
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No sign RBA is predisposed to cut rates soon: Macquarie’s Brian Redican

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The decision by the RBA to leave the cash rate on hold today at 3.5% reflects the need for the central bank to wait and measure the impact of the rate cuts in May and June, according to mortgage comparison website Ratecity.com.au.
“We’re not surprised that the Reserve Bank has left the cash rate on hold today at 3.5%,” says Michelle Hutchison, spokesperson for Ratecity.com.au 
“After two consecutive cash rate drops totalling 75 basis points in the past two months, we haven’t seen the RBA move so dramatically for almost three years. 
“The RBA needs time to allow the previous rate cuts to flow through to the economy and measure their impact. The Reserve Bank still has plenty of room to drop the cash rate if economic conditions deteriorate locally or overseas,” says Hutchison. 
She says most borrowers should be aiming for a home loan interest rate of below 6%, especially they have a 20% deposit or 20% plus equity. 
“Lending in Australia is still relatively slow and many lenders are keen to negotiate with borrowers to secure customers,” she says. 
RP Data’s Tim Lawless says it is difficult to gauge how much of the <a target="_blank" href="https://www.propertyobserver.com.au/residential/rate-cuts-help-housing-market-recover-in-june-with-1-rise-in-capital-city-dwelling-prices-rp-data%E2%80%90rismark/2012070255375">1% rise in  capital city dwelling recorded by the RP Data-Rismark Home Value Indices</a> can be attributed to lower interest rates. 
“However it is reasonable to assume that improved housing affordability on the back of lower mortgage rates and lower housing values has been a factor in the positive month on month result. 
"The Reserve Bank is likely to be watching conditions across the housing market quite closely as they walk a fine line of monetary policy settings trying to balance an improvement in consumer sentiment and willingness to spend while also wanting to avoid stimulating house prices. Despite the June rise, capital city home values remain 6.5% lower than their October 2010 peak,” Lawless says. 
Mortgage Choice spokesperson Belinda Williamson says while many borrowers were hoping for a third consecutive monthly rate cut, the data coming out of Australia is strong compared with most world economies. 
“We are approaching near full employment, our banking system is robust, inflation is controlled, interest rates are at historically low levels and borrowers are paying down debts. The contrast with many European nations could not be starker. 
“Borrowers should see the steady cash rate as a vote of confidence in favour of our economy and see this as a prime time to take control of their mortgage to help lessen any hip pocket pain,” she says.
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RBA cash rate holds signals it is still gauging impact of previous rate cuts: RateCity

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ING Direct is offering a rate cut to new borrowers who can provide a hefty 20% deposit with their mortgage applications.

The country’s fifth biggest mortgage lender will offer reduced variable mortgage rates on its Orange Advantage and Smartpack Mortgage Simplifier products from July 9.

The biggest rate cut will be on offer for borrowers who borrow more than $500,000 on a loan-to-value ratio (LVR) of less than 80%, with ING Direct reducing interest rates by 28 basis points from 6.16% to 5.88%.

ING Direct will reduce interest rates by 18 basis points on loans between $250,000 and $500,000 provided the LVR is above 80%.

<img src="/images/stories/2012/07/ingjuly3.gif">
To get the maximum reduced rate of 5.88% borrowers would need to have a deposit in excess of $125,000 to get a $500,000 loan on a property valued at $625,000 – a loan to value ratio of 80%.

“We’re looking to attract additional sub 80% LVR business and this pricing structure will make us more attractive to upgraders and investors, says Mark Woolnough, head of broker distribution at ING Direct.

Woolnough says the bank has also reduced the minimum lending threshold under Orange Advantage and SmartPack from $300,000 down to $250,000, which he says will appeal to a wider market.

“Whilst we’ve made various improvements to our service proposition this year, we certainly haven’t overlooked the importance of sharply priced, competitive products, and these changes highlight this,” he adds.

Woolnough says the changes have been made following consultation with its mortgage broker partners.

ING Direct uses brokers and the internet to distribute its mortgages.

In June, Lisa Claes, executive director of direct business at ING Direct, told Property Observer the bank was not driven by market share targets, “but by a sustainable growth proposition”.

“We want to grow our mortgage book responsibly – we are happy with where we are, but we are not complacent,” she said.
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ING Direct to offer cheaper rates to new borrowers who can provide 20% deposit

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The Reserve Bank has, as expected, left the official cash rate unchanged today at 3.5% following its monthly monetary policy meeting. 
The decision to hold follows 75 basis points being shaved off the cash rate in May and June. 
RBA board members will have noted the <a href="https://www.propertyobserver.com.au/residential/rate-cuts-help-housing-market-recover-in-june-with-1-rise-in-capital-city-dwelling-prices-rp-data%E2%80%90rismark/2012070255375">1</a><a href="https://www.propertyobserver.com.au/residential/rate-cuts-help-housing-market-recover-in-june-with-1-rise-in-capital-city-dwelling-prices-rp-data%E2%80%90rismark/2012070255375" target="_blank">% rise in capital city house and unit prices in June</a> as recorded by RP Data-Rismark, and partly attributed to the previous rate cuts. 
In its previous monetary policy statement the RBA remarked on the softening in the housing market. 
Retail sales figures for May will be released tomorrow, with economists expecting 0.2% month-on-month growth. 
A poll of 28 economists by Bloomberg ahead of the decision all expected the RBA to hold today. 
Westpac is still forecasting the cash rate to reach 2.75% by year-end. 
HSBC Australia economist Paul Bloxham expects one more 25 basis point rate cut in the second half of the year.
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RBA leaves cash rate on hold at 3.5%, noting housing market remains subdued

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

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

Larry Schlesinger

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