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Aussie Home Loans founder John Symond has taken a circumspect view <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">on the 1% rise in dwelling prices recorded by RP Data-Rismark over the month of June</a>.
“It’s a bit early to be cracking open the bubbly,” Symond says.
“You have double the number of homes on the market and double and treble the length of time for them to sell – that creates a lag.”
Symond says what may have helped the RP Data numbers were state governments bringing forward incentives for first-home buyers.
“There’s a whole lot of reasons.”
“It’s just too early… It’s still all negative news,” Symond said on Channel 7’s Sunrise program today.
He says normally a 1% to 1.25% drop in interest rates (the cumulative size of RBA rate cuts since November is 125 basis points) would result in a surge in home-buyers, but consumers remain cautious and are not diving into the market.
Symond says the RBA may cut rates again in the next few months but this will depend on what happens in Europe and if local data continues to be soft.
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lschlesinger-FZcF9M3vE6

Don’t crack open the bubbly yet on housing market recovery: John Symond

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The construction sector has received a boost with the number of dwellings approved for construction rising 27.3% in May on a seasonally adjusted basis, according to ABS estimates.
 The May rise follows a 7.6% fall in April.
 The value of total building approved rose 43.4% in May after falling for 3 months with the value of residential building rising 26.8% while non-residential building rose 71%.
 The rise in dwelling approvals was driven by a number of large private sector projects in New South Wales, Victoria, and the Australian Capital Territory, says the ABS.
The strongest gains were recorded in Victoria where building approvals rose 31.8% in May followed by New South Wales (25.1%), Western Australia (24.8%), South Australia (16.2%) and Queensland (10.3%).
Building approvals fell by 12.1% in Tasmania.
Approvals for private sector houses rose 8.7% in May led by South Australia (16.5%), Western Australia (13.2%), Queensland (12.3%), Victoria (6.5%) and New South Wales (3%).
Commenting on the May figures, Julene Lee  from Westpac economics says that while overall, "the spectacular headline rise in dwelling approvals may exaggerate the situation...there is enough strength left over to indicate a material improvement in conditions".
"Dwelling construction activity will still fall in a 'hole' through the middle of this year, particularly in Victoria, but the May approvals data suggests there is likely to be a recovery on the other side," Lee adds.
Peter Jones, chief economist for Master Builders Australia says the figures are welcome relief for industry "but it is too early to confirm the results as the beginning of a sustained recovery".
“The figures are certainly good news for an industry in survival mode. They suggest the recent Reserve Bank interest rate cuts and various state government housing incentives may be starting to take hold.
“Despite the positive signs, it is too early to declare the industry on the recovery path from what has been a prolonged period of downturn. Key forward indicators remain down and the multi-unit sector is notoriously volatile," he says.
Jones says "more easing of monetary policy is required to further boost confidence and encourage a return of new home buyers into the market".
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Victoria leads 27.3% resurgence in building approvals in May: ABS

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Tokyo-based Sony Bank, a division of financial services group Sony Financial Holdings, has won APRA approval to undertake a feasibility study about setting up an online mortgage lending operation in Australia.
Sony Bank operates as a low-cost branchless bank in Japan.
The bank plans to use deposits raised in Japan to fund its mortgage lending in Australia, according to a report in The Australian Financial Review.
Yellow Brick Road executive chairman Mark Bouris – who took on the major banks with Wizard Home Loans in the late 1990s – says the Australian banking sector appeals to overseas banks because of attractive profit margins and low mortgage arrears.
Foreign-owned online banks have already had success in Australia, with ING Direct – a division of Dutch-owned financial services giant ING – launching in Australia in 1999 and growing to be the country’s fifth biggest lender with a mortgage book in excess of $38 billion.
In 2008 NAB launched low-cost online offering Ubank, which currently has one of the lowest advertised variable mortgage rate at 5.62% for those refinancing their mortgage.
Other foreign-owned banks with a mortgage foothold in Australia include Citigroup ($8 billion loan book) and HSBC Bank Australia ($7.5 billion)
The big four banks – NAB, ANZ, Commonwealth Bank and Westpac – have more than 90% of the mortgage market and cemented their control of mortgage lending by opportunistically buying up some of their smaller rivals in the wake of the GFC.
Japanese banks are targeting overseas markets for growth due to the contracting lending market in Japan.
Japan’s three biggest banks – Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Financial Group and the Mizuho Group – already provide corporate loans to companies in Australia.
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Tokyo-based Sony Bank investigating online mortgage lending in Australia

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Lawyers representing WA couple Hugh Wilson and Marilee Coombs have confirmed that they have resolved their dispute with Brisbane-based The Investors Club over a Gold Coast apartment they purchased with the help of the property investment club in 2007.
The dispute was due to be heard in a Perth court later this year after two previous attempts at mediation between the parties failed.
A spokesperson for law firm Slater and Gordon, which represented Wilson and Coombs, says the terms of the resolution are confidential.
Coombs and Wilson launched a claim against The Investors Club and two staff members in August last year alleging they had been advised to purchase a three-bedroom bushland house in Highland Park on the Gold Coast that they later claim was grossly overpriced.
The property reputedly cost $630,000 when the couple bought it in 2007, though official records show a public sale price of $905,000.
The Investors Club also negotiated a $60,000 discount for the couple on the sale price.
After the couple purchased the property they say an independent valuation revealed the unit was worth as little as $450,000 at the time of the deal.
The townhouse was sold by Matthew Mariconte, principal of Champions Property Sales, for $391,000 on October 24 last year.
The Investors Club denied the allegations and blamed the fall in value of the townhouse on the effects of the GFC.
Founder of The Investors Club Kevin Young told the Australian Financial Review it had found an “amicable solution” to its dispute with Wilson and Coombs.
As part of the resolution to proceedings Wilson and Coombs issued a statement to The Investors Club.
The statement reads: “We acknowledge that at all times The Investors Club were honest and genuine in their dealings with us.”
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Investors Club reaches confidential resolution with former clients over Gold Coast apartment purchase

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Former RBA board member Warwick McKibbin says the central bank made a mistake at its last meeting by cutting the cash rate and misread the economic signals.
He says RBA should raise the cash rate at its meeting today to stem the “boom in the economy”.
McKibbin was a member of the RBA board from July 2001 until the end of July 2011 and is now professor of economics at the Australian National University and a member of its “shadow” RBA board.
McKibbin says the RBA missed reading the boom in the economy as he saw it and cut rates in anticipation of what might happen in Europe.
“If you’re always adjusting to what you think is going to happen, you’ve got the problem that if it doesn’t happen, you’re in the wrong place,” McKibbin said as reported the Australian Financial Review.
Of the other members of the ANU’s shadow board, only Jeffrey Sheen, professor of economics at Macquarie University agreed that the cash rate should go up.
Just 16% of the board called for a rate cut.
The full list of the shadow board is:
<ul>
<li>
Shaun Vahey, Professor, RSE, ANU. (non-voting chair)</li>
<li>
Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd</li>
<li>
Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore</li>
<li>
Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA</li>
<li>
Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia</li>
<li>
Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology</li>
<li>
Warwick McKibbin, Professor, RSE, ANU, CAMA</li>
<li>
James Morley, Professor, University of New South Wales, CAMA</li>
<li>
Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA</li>
<li>
Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy</li>
</ul>
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RBA should raise interest rates following June rate cut mistake: Warwick McKibbin

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The 1% rise in capital city house prices in June as recorded by RP Data-Rismark has coincided with an improvement in confidence among home buyers and investors, according to Yellow Brick Road executive chairman Mark Bouris.
Bouris says the positive housing data “signals the light at the end of the tunnel for home owners and property investors”.
Bouris says Yellow Brick Road has seen an increase in consumer enquiry specifically around refinancing and financial planning, “as people have begun to wake up and take their financial matters into their own hands”.
<a href="https://www.propertyobserver.com.au/australian-capital-territory/refinancing-borrowers-take-advantage-of-competitive-market-in-june-afg/2012070255377" target="_blank">Over June mortgage broker AFG</a> recorded an increase in refinancing to nearly two out of every five mortgages arranged by its loan writers as well as a drop in fixed-rate mortgage demand as borrowers anticipate further rate cuts.
“The 55-basis-point reduction in the average discounted home loan rate over May and June means that refinancing is becoming increasingly competitive, with lenders vying for business and consumers becoming more active in finding the best possible mortgage rate,” says Bouris.
“Average monthly home loan repayments can differ by over $100 per month between the major four banks and non-bank lenders such as Yellow Brick Road, which shows how much savings there are to be had by shopping around,” he says.
Bouris claims people now have a better understanding of market volatility and have turned to more conservative investment opportunities that will offer a steady return without as much risk.
Bouris says there has been “a massive uptake of Yellow Brick Road savings products among first-time home buyers and people looking to invest in high-yielding, conservative assets.
“Consumers know that there’s a lot of volatility in the share market and many simply don’t want to get in over their heads. On a positive front, the current economic environment has taught people to be more cautious, which will hopefully assist in preventing mortgage arrears and business bankruptcies in the long term,” he says.
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Rise in property prices coinciding with more confident home buyers and investors: Mark Bouris

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Economists are for once unanimous in their opinion that the official cash rate will remain unchanged today at 3.5%.
All 28 economists polled by Bloomberg expect the RBA to sit tight, but in the past they have often disagreed on the direction of the cash rate and changed their minds as local and global economic factors have shifted.
Here’s a guide to how economists’ thinking has shifted over the past 12 months.
June 6, 2011
Hard for RBA to push up rates: Bill Evans, Westpac
At the time <a href="https://www.propertyobserver.com.au/news/economists-say-the-rba-should-not-raise-rates-but-five-think-it-will/2011060650420">Westpac chief economist Bill Evans</a> said the fall in GDP in the March quarter, the weakest since March 1991, along with the weaker data flow, would make it very difficult for the RBA, “from a public relations perspective, to push up rates in June”.
July 27, 2011



Higher-than-expected inflation figures could trigger rates rise: Warren Hogan, ANZ

<a href="https://www.propertyobserver.com.au/news/higher-than-expected-inflation-figures-could-trigger-rates-rise/2011072750934">ANZ chief economist Warren Hogan</a> said pressure would grow on the RBA to consider an interest rate increase following CPI rising 0.9% in the June quarter. However, Hogan said that given heightened global uncertainty and weak domestic confidence (consumer and business), “we do not think the RBA will respond immediately”.

August 4, 2011
Case for cut steadily building: Shane Oliver, AMP
<a href="https://www.propertyobserver.com.au/news/case-for-interest-rates-cut-steadily-building-shane-oliver/2011080451032">AMP Capital Investors chief economist Dr Shane Oliver</a> said the global outlook was looking softer than the Reserve Bank of Australia had been assuming. “In fact, the case is steadily building that the next move in the cash rate will be down,” he said.
September 15, 2011
Interest rates likely on hold until November 2012: Alan Oster, NAB
 
NAB chief economist Alan Oster <a href="https://www.propertyobserver.com.au/economy/interest-rates-on-hold-until-november-2012-nab/2011091551567">predicted the cash rate could stay on hold until November 2012</a> following the release of revised, softer inflation figures. The bank had previously anticipated rates would stay on hold until May 2012, but Oster and fellow NAB economist Rob Henderson said the inflation figures “fundamentally altered the history of the underlying CPI”.
September 27, 2011
Slowing spending makes rate cut more likely: Bill Evans 
<a href="https://www.propertyobserver.com.au/economy/slowing-spending-makes-rate-cut-more-likely-bill-evans/2011092751697">Evans forecasted consumer spending growth to slow to below 2%</a> for the four quarters to June 2012 and said that would make the case for a rate cut even stronger.  Along with “anaemic credit growth of 3% and modest falls in house prices it seems clear that interest rates are well into the contractionary zone,” wrote Evans in the September Coast-to-Coast report.
October 19, 2011
RBA to keep hand on pause button: Michael Workman, CBA,
ANZ, Westpac and the Commonwealth Bank all expected the Reserve Bank to keep its hand on the pause button for at least another month as it weighed up solid domestic growth prospects against global economic concerns. <a href="https://www.propertyobserver.com.au/economy/rba-rate-cut-coming-but-not-this-month-say-major-banks/2011101851975">Commonwealth Bank senior economist Michael Workman</a> said the most likely scenario was that the RBA would leave the cash rate at 4.75% in coming months rather than opt for a rate cut.
October 28, 2011
History suggests the RBA will sit in November: Paul Bloxham, HSBC
History suggested the RBA preferred to hold steady for long periods, rather than fine-tune, so <a href="https://www.propertyobserver.com.au/economy/history-suggests-rba-will-sit-still-next-week-hsbc-s-paul-bloxham/2011102852110">former RBA insider and now HSBC Bank Australia economist Paul Bloxham</a> suggested the RBA would keep the cash rate on hold in November. 
November 2, 2011
The RBA cut rates by 25 basis points, bringing the cash rate down to 4.5.%.
December 7, 2011
The RBA cut rates by 25 basis points again, bringing the cash rate down to 4.25%.
January 13, 2012
Two rate cuts in 2012 starting in February: Besa Deda, St.George
<a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030">St George Bank’s chief economist Besa Deda</a> forecast a February rate cut mainly as a result of continued uncertainty in Europe. She said two cuts were likely in 2012 but that external factors were likely to play a large part in determining what the RBA would do.
April 24, 2012
Further relief now certain for borrowers: Christopher Joye, Rismark
Rismark International and Yellow Brick Road director Christopher Joye said the RBA will “probably choose to wait until it has the benefit of seeing the Gillard government’s budget (May 8) after its May 2 meeting” and cut by 25 basis points rather than go with a 50-basis-point cut. “If it does so, its view of the world remains unchanged, and, finally, the banks do not pass on the May cut in its entirety, then the probability of follow-up relief in June would rise materially.”
May 2, 2012
The RBA cut rates by 50 basis points, bringing the cash rate down to 3.75%.
May 31, 2012

Cash rate to reach to 2.75% by year-end: Bill Evans, Westpac

Taking into consideration the gap between the cash rate and bank mortgage rates, <a href="https://www.propertyobserver.com.au/news/rba-to-cut-rates-by-25-basis-points-next-week-with-three-more-to-come-taking-cash-rate-to-reach-275-by-year-end-westpac/2012053154924">Westpac chief economist Bill Evans said a move to 2.75% in the official cash rate</a> was likely to bring the cash rate somewhere between 100 basis points and 145 basis points below neutral. Evans said the two extra rate cuts are based on the banks assessment that “the global environment – read Europe - has deteriorated even further since we revised down our call for the low point from 3.75% to 3.25%”.

June 6, 2011 
The RBA cut rates by 25 basis points, bringing the cash rate down to 3.5%.
June 29, 2012
Only one more rate cut in second half of 2012: Paul Bloxham, HSBC
<a href="https://www.propertyobserver.com.au/news/rba-to-leave-cash-rate-on-hold-next-week-with-one-more-cut-likely-this-year-hsbcs-paul-bloxham/2012062855336">The Reserve Bank was “ahead of the curve” on its cash rate setting</a> and was set to leave the rate unchanged at 3.5% at its July meeting on Tuesday, said HSBC Australia chief economist Paul Bloxham. He said interest rate markets pricing in 90 basis points in cuts was “overdone”.
For tips on investing in property following times of turmoil, <a target="_blank" href="http://propertyobserver.com.au/ebooks/investing-in-property-in-times-of-turmoil-free-ebook">download our free eBook.</a>
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The 12 twists and turns in the RBA interest rate debate in a year of economic turmoil

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The megaphone should be taken away from “narrow-minded, self-interested individuals” who oppose the building of new homes in their Sydney suburbs, says think-tank the McKell Institute.
In a paper submitted to the NSW government, the institute supports Planning Minister Brad Hazzard’s vision of a return to terrace housing in Sydney.
The institute says there are 41 suburbs that are “ripe for a terrace revolution” and could incorporate terraces into their communities effectively.
The list of 41 suburbs includes million-dollar locations like Neutral Bay, Cremorne and Mosman on the north shore and Bondi and Bronte in the eastern suburbs.
Sydney suburbs that should return to the terrace
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But the not-for-profit institute warns that “vested interests” are standing in the way of much-needed new housing projects in these Sydney suburbs.
“The era of militant Not in My Backyard (NIMBY) resistance to new housing must come to an end,” write authors of the McKell submission Tim Williams, Sean Macken and Peter Bentley.
“The current planning system has placed too much emphasis on mitigating the local impacts of new housing development and less on the state and regional importance of providing homes for people,” they say. 
“These vested interest groups have been given a megaphone through our planning system while the hundreds of thousands of Sydney residents struggling to enter the housing market or simply meet their rental payments are denied a voice. 
“This is unacceptable.” 
“Whether it is north shore residents in Ku-ring-gai opposing new housing along their railway corridor or inner-west residents in Balmain seeking to stop 300 new homes proposed on a major arterial road, the battle cry of ‘Not in My Backyard’ can be heard echoing throughout Sydney’s town halls, community centres and local cafes,” the McKell Institute goes onto say. 
The institute concedes that some proposed new housing in Sydney is opposed based on “genuine environmental concerns” but says objections “often have far less to do with protecting the local environment then they do with protecting a cloistered group of residents’ property prices or views”. 
“Residents’ action groups in Sydney have reached levels of previously unseen coordination and efficiency in recent years. Their ability to quickly mobilise a crowd to heckle from the gallery at a council meeting or blanket a suburb with erroneous claims of a neighbourhood’s demise if a new housing proposal goes ahead is impressive, but disastrous for sensible housing policy,” says the institute. 
In its submission it claims that while greenfield developments face the challenges of building and funding new infrastructure including water, sewerage, electricity, gas, roads, transport links, community infrastructure and amenities, on top of planning and rezoning challenges, infill developments only face planning and rezoning challenges. 
It also notes that there is already a move towards more terrace housing living as found in the 2011 census, with terraces and townhouses making up 12.8% of housing stock and the percentage of detached houses falling from 60.9% to 58.9% since 2006. 
It claims that the “seemingly endless opposition to infill development” is one of the key drivers in Sydney failing to build the number of homes we need in existing suburbs. At a macro level this drives up the price of homes and rental costs and denies the next generation of Sydneysiders the ability to own their own home. 
The report notes that areas like the inner north and Sydney City have failed to come even close to meeting their modest targets for infill development.
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“This is in small part due to local councils and local residents in these regions opposing and delaying infill development,” says the McKell report. 
The institute says “drastic action” must be taken to fix Sydney’s housing crisis. 
“For the past three decades NSW has lacked a coherent housing policy and what policies it has had to support housing has been inconsistent and contradictory. 
“Bad housing policy is bad social policy, as Sydney residents are forced to pay higher prices to either rent a home or own their own home. 
“Sydney’s average house price is now $641,000 compared to Melbourne’s average price of $529,000,” says the McKell report. 
The McKell Institute believes 35,000 new homes must be built each year within the Sydney region in order to meet demand – compared to the annual target of 23,000 agreed to in 2010 in the NSW government metropolitan srategy for 2036.
The NSW government discussion paper <a target="_blank" href="https://www.planning.nsw.gov.au/sydney-over-the-next-20-years">Sydney over the next 20 years</a> forecasts that Sydney will have 1.4 million more people by 2036 and will need 570,000 more homes than are currently standing.
For more on <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-sydney-embracing-the-world-of-tomorrow">Sydney's present and future download our free eBook.</a>
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‘Militant NIMBYism’ from Mosman to Bondi ruining development of Sydney housing market: McKell Institute's 41-suburb hit list

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Mortgage broker AFG recorded a noticeable jump in borrowers refinancing their mortgages in June, though the total number and value of mortgage arranged fell back following a very strong May.
AFG’s loan writers arranged 6,690 mortgages in June worth $2.64 billion, compared with 7,635 in May worth just over $3 billion.
The proportion of borrowers refinancing rose from 35.8% in May to 39.1% in June – almost two in five mortgages – as borrowers took advantage of lower interest rates on offer.
Mark Hewitt, general manager of sales and operations at AFG, says refinancing is currently very strong as borrowers take advantage of a more competitive market to secure a better deal.
AFG recorded that the popularity of fixed-rate home loans has fallen to its lowest point since September last year.
Fixed-rate loans peaked at 25.4% of all home loans arranged in March this year – the highest such level AFG has ever recorded.
Since then, there has been a steady decrease in borrowers looking to fix rates, and in June 16.5% opted for a fixed-rate mortgage.
“It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future,” says Hewitt.
{module What do you intend to do given the current interest rate fluctuations?}
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Refinancing borrowers take advantage of competitive market in June: AFG

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Lower interest rates helped Australia’s eight capital cities record a 1% gain in dwelling prices over June to a median of $460,000, according to the latest RP Data?Rismark June Hedonic Daily Home Value Index.
The three biggest markets – Sydney, Melbourne and Brisbane – all recorded dwelling price gains of 1% over June.
Perth was the standout market, with a 2% gain to a median of $460,000, with Perth dwelling prices now down just 1.4% over the previous 12 months.
Perth also had the strongest house price gain over June, with house prices up 2.4% to a median of $475,000.
The combined Brisbane-Gold Coast market was the strongest unit market over June, with a gain of 2% to a median of $355,000.
For the 12 months to the end of June Sydney dwelling prices are down 2% to a median of $541,000.
Melbourne remains the weakest housing market, with dwelling values down 6.6% for the year to June to a median of $480,000. The Brisbane market is down 4.7% to a median of $415,000.
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RP Data research director Tim Lawless says the catalyst for the improvement in market conditions “is likely to have been the 55-basis-point reduction in the average discounted home loan rate over May and June as well as the subtle improvement in consumer sentiment readings that have been reported”. 
“The increase in capital city dwelling values is an encouraging sign that the market appears to be responding to improved housing affordability and lower interest rates,” Lawless says. 
Lawless notes that capital city dwelling values have simultaneously risen over three months and fallen over three months – but the end result is that the market is still down 1.2% over the first six months of 2012. 
“Regardless, while discounted variable mortgage rates are as low as 5.6%, Australian households remain understandably cautious about the economy given the global uncertainty. 
“This is likely to weigh down on consumer demand for high commitment purchases,” he says. 
Rismark CEO Ben Skilbeck described the Melbourne rebound as “perhaps the most significant insight from the daily index”. 
“Between January 2009 and December 2010 Melbourne dwelling values rose by a remarkable 35%. 
“Since that time they have corrected by just over 8%. After reaching a trough on 11 June, Melbourne dwelling values have now recovered by an impressive 1.7%. But they are still off about 4.1% in 2012,” Skilbeck says. 
Skilbeck also notes the impact of lower interest rates on house prices. 
“The rebound in capital city home values during June indicates that the RBA’s relaxed monetary policy stance may have reached the point of inflating asset prices despite households remaining cautious about the economy,” says Skilbeck. 
He says housing market fundamentals are increasingly solid, with asset prices likely to respond to further monetary policy stimulus. 
The only major capital city to record a fall was Adelaide, with dwelling prices down 1.1% to a median of $370,000.
Among the smaller capital city markets, Canberra dwellings rose 2% to a median of $485,000 and Hobart up 2.7% to a median of $342,000.
Darwin dwelling prices fell 0.7% in June to a median value of $468,000 – but it remains the only capital city market alongside Canberra to be up over the past 12 months.
The highest rental yields are Darwin houses and units. Both have a gross rental yield of 6.1%. 
The lowest rental yields are Melbourne houses at 3.7% and Melbourne units at 4.5%.
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Rate cuts help housing market recover in June with 1% rise in capital city dwelling prices: RP Data?Rismark

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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[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.

[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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