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New home sales rose just 0.7% in the month of May despite the RBA’s 50-basis-point rate cut at the start of the month, according to the May HIA - JELD-WEN New Home Sales report.
The rate cut – most of which was passed on by lenders – helped drive a 21.1% increase in sales of multi-units (apartments) over the month, but detached houses fell 2%.
The figures are based on the HIA’s monthly survey of Australia's largest volume residential builders.
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AMP Capital chief economist Shane Oliver says the May HIA results “confirm that the housing market remains chronically weak right now”.
“New home sales rose 0.7% in May but remain at very depressed levels confirming that mortgage rate cuts to date have not had much impact so far.
“Our assessment remains that, with Australian households now very cautious about taking on debt and having lost confidence in the outlook for house prices, against a back drop of ongoing global uncertainty and benign inflation, further cuts in the cash rate will be required over the next six months," he says.
Oliver expects the cash rate to fall to 2.75% by year end.
The only mainland state to record a seasonally adjusted increase in new detached sales was Victoria, with a modest 3.9% rise – mainly attributable to buyers rushing to secure the $13,000 first-home bonus, which ends on June 30.
Detached house sales fell by 6.3% in Queensland and were down by 5.5% in New South Wales, 4.7% in Western Australia, and 1.5% in South Australia.
"The impact of interest rate cuts at the end of 2011, together with the announcement of a 50-basis-point cut to the official cash rate on May 1 this year, has so far done little to spur new home sales, given the soft outcomes evident for detached houses," says  HIA chief economist Harley Dale.
Dale says it is encouraging to see a second consecutive increase in the sale of multi-units, a result which saw a lift of 11.6% over the May 2012 quarter.
"We expect that through the second half of 2012 the aggregate impact of interest rate cuts in late 2011 and then mid-2012 will at the very least put a floor under new home sales, and other leading housing indicators which also remain very weak," says Dale.
“Further interest rate reductions are warranted, but rate cuts can’t do all the heavy lifting
“Government investment and reform is required to complement the helping hand that lower borrowing costs should provide new home building in the second half of 2012, and the Federal government should be leading from the front.”
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May 50 basis point cash rate cuts deliver little fillip to new housing market: HIA

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A free-standing Ritchies IGA in Mount Waverley has sold to an Asian Melbourne-based buyer for nearly $700,000 above the reserve after attracting more than 23 enquiries from offshore Asian buyers prior to its June 27 auction.
Many of the bids included the number 88 – the Asian symbol of good fortune and good luck.
In a room packed with 200 people the 2,500-square-metre supermarket was the subject of a bidding war between four potential buyers in the room - three of whom were Asian - and a Hong Kong investor on the phone.
"Two bidders locked horns over the property" says Graeme Watson, joint selling agent alongside Raoul Holderhead from Burgess Rawson.
The supermarket had a $6.5 million reserve and eventually sold for $7.19 million.
The sale price reflected a yield of 6.51% based on rent of around $477,000 per annum plus GST, with the property leased to long-term tenant Ritchies IGA on a 15-year lease with renewal options to 2034.
It had previously been marketed in Asian publications given its location on the corner of Stephensons Road in Mount Waverley, a suburb where houses are regularly snapped up by Asian buyers looking to live in its sought-after school zone.
Recently Jeremy Desmier, Fletchers real estate director, said suburbs like Balwyn and Glen Waverley were popular among buyers with temporary residency because of their highly rated government schools.
Holderhead tells Property Observer the high yield reflected the fact the shopping centre is a “very rare” asset in the “dead centre of Melbourne” in a fairly affluent suburb with no available land pockets.
“The only competition is a Woolies round the corner,” he says.
Another appealing factor, he says, is the fact that it was only built in 1999 and thus is relatively new.
He says the buyer is willing to pay well above the reserve price despite “turnover being knocked around a bit from the recent supermarket price wars”.
He estimates that a Coles or Woolies in the same location could fetch $10 million or $11 million, with yields of around the 4% mark.
Graeme Watson describes Mount Waverley as a “very established, affluent area with a substantial Asian population".
"The IGA is located in a very comprehensive strip style centre” with none of the 100 shops on the strip vacant.
“All the major banks are on the strip plus there are four pharmacies and four bakeries,” Watson says.
He says the IGA's free-standing nature also made it an attractive asset for investors.
The sale of the IGA suggests Glen Waverley and surrounding south-eastern Melbourne suburbs are becoming something of a commercial as well as residential hotspot.
In March The Palms restaurant at 213-215 Blackburn Road in Mount Waverley, standing on a 1,015-square-metre block, sold for $2.03 million to a private investor on a yield of nearly 7%.
It sold with a 10-year lease to the restaurant, having attracted interest is in the vicinity of $1.9 million to $2 million.
Selling agents were Colliers International's Hamish Burgess and Ben Baines, who said three strong bidders pushed the price well above the reserve.
Burgess said at the time there was a strong demand for development sites in the Melbourne eastern metropolitan market, with developers now favouring medium-density sites in the eastern suburbs.
As an example of the demand for residential property in nearby Glen Waverley he pointed to the recent off-the-plan success of Consolidated Properties $70 million 11 storey Ikon apartment project.
All 116 one- and two-bedroom apartments in the mixed-use development were snapped when it launched last year. The project also includes an office and retail precinct. Construction began in April.
Recent Melbourne suburban shopping centre sales have included a Mentone supermarket anchored by Woolworths, which sold on a yield of close to 8%, and a Coles-anchored Bundoora Square in the north east, which sold on a yield of 7.4%.
Mount Waverley ranked as the 121st most liveable suburb in Melbourne in the 2012 Age liveability survey, with the report noting that neighbouring Clayton ranked 272 with the only sizeable difference between the two is Mount Waverley's good rating on crime.
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Mount Waverley IGA with lucky 88-dollar bids sells for $600,000 above the reserve

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Banks are willing to provide loans to first-home buyers purchasing a new home off the plan – with the proviso that a lower valuation on settlement could force them to scramble for cash to make up the potential shortfall.
Their response follows a media report suggested the banks are reluctant to lend to off-the-plan first-home buyers.
The concern emerged ahead of changes to the NSW first-home owner grant from October 1, which will provide $15,000 towards a new home (including those bought off the plan) but nothing for first-home buyers purchasing an established property.
CBRE managing director David Milton was reported in the Sydney Morning Herald as saying that banks “frowned” on lending to first-home buyers.
He said the issue was one of confidence for first-home buyers, as banks were only willing to provide a conditional six-month loan approval, when a project could take much longer to complete.
“An off-the-plan project can take from 18 months to over two years to complete,” Milton said.
But he acknowledged to Property Observer that this was not applicable to all transactions and that the scenario of final property valuations being less than the off-the-plan valuation was only a problem when markets are in downturn.
Westpac, Commonwealth Bank, Suncorp and NAB have all told Property Observer they will finance long-term off-the-plan purchases, but with an understandable caveat around the final valuation.
“There has been no change to our first-home buyer policy,” a spokesperson for Westpac tells Property Observer.
“We give people approval in principle if they are buying off the plan. We will do an assessment based on the information provided and all the normal stuff we do in assessing a home loan application,” he says.
The bank will provide a conditional approval for up to for six months, which the bank says gives borrowers an idea if they should go ahead and make the purchase.
“There is the risk element that the apartment will not be built by the time the offer lapses – but there has always been that risk element. It’s the same for people who buy at auction with a long settlement plan,” he adds.
“If it does take longer, the borrower can come back to Westpac and go through the same process of assessment but in the knowledge we have been involved before.
“However, there may be a price valuation difference.”
Suncorp, which has been an active lender to first-home buyers this year, according to AFG figures, will also provide financing for eligible borrowers but has flagged the valuation at settlement as a risk the buyer must bear.
“Banks absolutely want to ensure the quality and value of the end product meets what the developer has specified and agreed to build,” says Suncorp Bank executive manager for personal lending Tony Meredith.
“When a bank agrees to finance a new home construction it is essentially committing to something that is only proposed on paper at the initial stage, which means making sure the end product is in line with this proposal is crucial.
“New construction loan customers are told this up front, so there are no surprises,” he says.
Meredith says customers can also protect themselves and their deposits by ensuring the contract stipulates that the end product needs to meet the market valuation.
The Commonwealth Bank says its provides a conditional loan approval available for up to 18 months if lenders mortgage insurance (LMI) is not applicable and up to six months if LMI is applicable.
To avoid LMI a borrower needs about a 20% deposit.
“Applicants must be able to demonstrate genuine savings of at least 5% of the purchase price, grants or subsidies are not able to be used for the deposit,” says a spokesperson for the Commonwealth Bank.
The bank says it will not accept guarantees from parents in these situations.
As in the case of Westpac and Suncorp, the Commonwealth Bank’s loan approval is conditional subject to a satisfactory “on completion” valuation conducted 90 days before settlement and re-confirmation of the customer's financial details.
“If there are any changes to the security position and / or the repayment capacity, the approval may be withdrawn.”
A spokesperson for NAB says all home loan applications are considered on a case-by-case basis, “taking into account property value, including size and location – as well as the customers' deposit and ability to repay”.
The bank’s home loan applications are valid for 90 days, from approval to settlement, for all property types and buyers. “This ensures the approved loan amount reflects both the current value of the property and the customers' ability to repay the loan, at settlement.”
Assurances by the banks that they will lend to these borrowers are supported by mortgage broking franchise Mortgage Choice, “provided they have a deposit of at least 5% including evidence of genuine savings, additional funds to cover expenses associated with property ownership, and are able meet the individual lender’s loan serviceability criteria”.
But Mortgage Choice spokesperson Belinda Williamson says raising a deposit of about 10% – even if not required – is particularly important for those buying off the plan to help protect them against valuation variances.
“If the valuation on the completed property comes in lower than the purchase price that was agreed at the time of making a deposit, the borrower will be required to make up the shortfall,” she says.
Williamson says first-home buyers are generally more at risk, “as they often lack the available equity or funds to fill this gap,” she says.
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Banks willing to finance off-the-plan first homes but buyer must take valuation punt 

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Brisbane new high-rise apartment sales fell 31% in the May quarter, with 128 sales recorded compared with 186 in the February quarter, according to the latest Midwood Report.
The total number of apartments for sale also fell to 1,227, the lowest level since November 2010.
The report notes that the current sales rate is in line with average sales rate over the past 12 months.
Three projects dominated sales – Metro Property’s Madison Heights project in Bowen Hills; the big Hamilton Harbour project being co-developed by Devine and Leightons and FKP’s The Milton in the inner west.
Here’s a breakdown of the top six high-rise sellers in Brisbane during the months of March, April and May:
<img src="/images/stories/2012/06/55.gif">
The number of apartments sold in Metro’s Madison Heights development in Bowen Hills. There are 308 units in the project, with 255 sold to date. The median price paid per square metre was $6,616.
 
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The number of apartments sold in Devine and Leighton’s Hamilton Harbour – Riverside Hamilton development. There are 189 units in the project, with 127 sold to date. The median price paid per square metre was $6,831.
 
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<img src="/images/stories/2012/06/23.gif">
The number of apartments sold in the Metro Pearls Brooklyn on Brookes project in Fortitude Valley. There are 216 units in the project, with 88 sold to date. The median price paid per square metre was $7,761.
 
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<img src="/images/stories/2012/06/17.gif">
The number of apartments sold in the FKP’s The Milton project in Milton. There are 298 units in the project, with 145 sold to date. The median price paid per square metre was $7,244.
 
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<img src="/images/stories/2012/06/6.gif">
The number of apartments sold in the Laing O’Rourke/Trident Corp McLachlan &amp; Ann (M&amp;A) project in Fortitude Valley. There are 234 units in the project, with 172 sold to date. The median price paid per square metre was $7,692.
 
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<img src="/images/stories/2012/06/5.gif">
The number of apartments sold in the Metro Property Development The Chelsea project in Bowen Hills. There are 195 units in the project, with all sold. The median price paid per square metre was $7,087. The project settled in February.
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Brisbane high-rise apartment sales down 31% in May quarter: Midwood

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Declining auction sales, falling private sales and lower clearance rates are three clear trends emerging in the Melbourne housing market, according to the Real Estate Institute of Victoria (REIV).
The trends have emerged as the REIV cautions that there will be no house price growth in Melbourne over the next few years.
In its  2012 State of the Victorian Property Market report the REIV calculates that there have been 6,925 auction sales in Melbourne up to the weekend of June 18, compared with 8,566 at the same time last year and 11,647 in 2010 – representing a 19% decline from the same period last year and 41% down on 2010.
Clearance rates over the last two years are also about 20% below historical levels.
REIV spokesperson Robert Larocca says the number of private sales is also declining.
But he cautions that these figures will be revised upwards as the institute gets more complete data from estate agents.
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Source: REIV, for the calendar year to June 18, 2012
Economics website macrobusiness.com.au points out that auction sales numbers are currently 21% below the five-year average while the clearance rate is 18% below the five-year average.
Macrobusiness.com.au calls the figures a “sobering assessment” of the Melbourne housing market.
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Melbourne auction sales down 19% on same time last year: REIV

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The Hong Kong-based Shangri-La Hotels and Resorts group has made its second foray into the Australian hotel market in the space of a week, picking up the Holiday Inn Brisbane for around $48 million.
It follows its purchase of <a href="https://www.propertyobserver.com.au/leisure/sydney-shangri-la-hotel-sells-to-hong-kong-shangri-la-asia-group-for-record-%24352-million/2012062555249">Sydney’s Shangri-La Hotel in The Rocks for the $352 million</a> announced earlier this week.
Shangri-La Hotels has also assumed management of the Brisbane Holiday Inn and will operate it as a Traders Hotel.
The hotel is located at 159 Roma Street, within walking distance from the CBD and Suncorp stadium.
The purchase of the Holiday Inn was facilitated by Jones Lang LaSalle Hotels’ Craig Collins, Dean Humphries and Peter Harper, who also advised on The Rocks purchase.
Collins says the Brisbane hotel market has witnessed the most transactional activity in Australia over the past six months, with this being the fourth transaction Jones Lang LaSalle has undertaken in the city over this period.
“Prior to this sale there had been very little activity as Brisbane has historically been one of Australia’s most tightly held investment markets,” he says.
According to Collins, Brisbane has been one of the standout hotel trading markets this year to date, with revenue per available room (RevPAR) growing by 5.9% to surpass the 2008 peak and reach $151.
Total hotel transaction volume in Australia has reached almost $1 billion for the year to date, with Asian investment accounting for over 90% of transaction volume.
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Hong Kong’s Shangri-La group picks up second Australian hotel in a week with $48 million Brisbane Holiday Inn purchase

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About 42% of taxpayers will use any tax refund they receive from the Australian Tax Office (ATO) to pay off their debt, including their mortgages and credit cards, according to a new Bankwest survey.
The 2011-12 Taxing Time survey found – not surprisingly - that taxpayers have a very thrifty mentality as the end of the financial year looms just three days away.
Of the 42% who said they would some of their refund to pay off debt (up from 39%), the majority will focus on paying off their credit cards (63% versus 50% last year) while just over a third will use the refund to pay off more of their mortgage (34% versus 47% last year).
The same proportion of respondents this time round – 31% – said they would put some of the refund into their bank accounts, while nearly one in five (19%) said they would use the money to on basic commodities including rent and food. 
A lower proportion than last year – 15% compared, with 18% – said they use some of the money to indulge in something “exciting” like a new TV or a holiday.
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Taxpayers also expect to receive less from the government this year. 
The average expected tax return has decreased 13% across Australia to $2,017 for 2011-12 from $2,317 in 2010-11 financial year. 
The proportion of respondents who expect to receive a tax refund has dropped to 73% this year from 78% in the last financial year, while the proportion of people expecting to pay additional tax has increased to 9% from 6%. 
The results are based on an online survey of 800 people aged 18 and over carried out in May this year by CoreData on behalf of Bankwest.
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Thrifty taxpayers plan to use tax refunds to pay off home loan and credit cards: Bankwest survey

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Property developer Mirvac has begun talk with coal and liquefied natural gas (LNG) producers about building houses for workers in northern Queensland, its managing director Nick Collishaw has said.
Collishaw says current talks about providing homes for workers building the new mining projects will be followed by discussions in about three to five years' time about longer-term, master-planned communities.
This follows Mirvac being named as the preferred developer of the Karratha city centre in the iron-ore rich Pilbara region in a joint venture project with the local land authority in a deal worth $1.5 billion.
The project will create the new suburb of Mulataga, providing accommodation for 8,000 people, Bloomberg reports.
“What’s been happening in the Pilbara and north of Queensland so far has been one off, ad hoc projects. The debate going on right now in the resource centres and councils is this is no longer boom-bust style development,” Collishaw says.
"We’re now putting together the infrastructure, the cultural facilities, you expect to see in the suburb of a city.”
To capitalise on the mining boom on the other side of the country, download our<a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom"> free eBook on investing in Queensland's resources boom.</a>
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Mirvac looking to build residential communities for mining towns in regional Queensland and WA

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Mortgage holders could be saving themselves thousands of dollars per year just by demanding a discount off their standard variable mortgage rate, says Aussie Home Loans founder John Symond.
“Standard variable is for people who have had a mortgage for three or four years and are too lazy to do something about it,” he says.
According to Symond, two out of three times a bank will be willing to offer variable borrowers a discounted rate if they ask.
The average standard variable rate of the big four banks currently stands at 6.76%, but Symond says borrowers should be able to get a discounted variable rate of around 5.8%.
According to Property Observer calculations, a $400,000 mortgage taken over 30 years at a rate of 6.76% equates to monthly repayments of around $1,950, while at a rate of 5.8% they fall by almost $200 to $1,760.
The difference in total mortgage repayments in these scenarios over the life of the loan is over $70,000.
Symond says it is essential that borrowers do a mortgage health check through a mortgage broker before they go and see their bank manager.
“A finance broker has hundreds of mortgages from all lenders, big and small,” Symond told David Koch on Channel 7's Sunrise this morning.
“What they [mortgage brokers] can do in 30 minutes you could not do in two months, and you can get a free and impartial view.
“And then if you like your bank, you can go to your bank and say: ‘I am paying three quarter of a percent to much here’.
“Two out of three times they will just drop your interest rate – just like that.”
Symond says there is no real need to fix your mortgage at the moment given the discount rates available on more flexible variable products.
“It is enticing to see three year fixed mortgages at around 5.75% now, the lowest in a long time, but anyone taking a mortgage today will get a variable rate around that figure.
"Borrowers on a variable rate of 5.75% or 5.8% should be holding off fixing.
“If it helps you sleep at night and you have a tight budget, go and fix half your mortgage.”
But he warns that a fixed-rate mortgage is an inflexible option.
“If you want to increase your repayments or add a redraw facility, a fixed-rate mortgage restricts your flexibility.
“With a variable rate you can do what you want,” he says.
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Only lazy people stick with undiscounted standard variable mortgages: John Symond 

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US house prices across the 20 biggest metropolitan markets rose 1.3% over April according to the benchmark S&amp;P/Case-Schiller index, with signs emerging that the housing market may be stabilising.
The gain followed seven consecutive months of falling home prices.
The graph below shows the April turnaround as well as the massive drop in house prices that began in late 2007 following the start of the sub-prime mortgage crisis culminating in the US housing bubble bursting and prices falling 20%.
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During April San Francisco was the strongest market,  registering a 3.4% gain, with Washington DC next best, up 2.8%. 
Out of the 20 cities measured by Case-Schiller, only Detroit recorded a house price decline, down 3.6% in April.
New York prices were flat, Chicago house prices rose 1.1%, and Los Angeles house prices gained 1.5%.
Over the past 12 months Phoenix was the standout market, with gains of 8.6%, while Atlanta is far and away the worst with a 17% plunge over the past year to April.
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“Clearly the big headline is that we went up,” <a href="https://video.cnbc.com/gallery/?video=3000097956">David Blitzer, managing director and chairman of the S&amp;P Index Committee, told CBNC</a>.
“Nineteen out of the 20 cities saw gains. Across the board it looks like a very strong report,” Blitzer says.
He says some of the gains may be due to the spring selling season hitting its stride “but certainly not all of it”.
“My guess is at least half of what we're seeing are real gains, not just seasonal shifts.”
Blitzer says price gains were expected in April following increased sales and housing starts over the past few months, “amidst a lot of talk of better housing markets”.
Christopher Low, chief economist at FTN Financial, which “slices and dices” the housing market, says people have been talking about housing recovery for a while but keep being disappointed.
He says data is now stacking up better than it has in a long time, with new home sales “perking up off their lows”.
“What we see in the Case-Schiller Index is that house prices are starting to stabilise, and we keep seeing a handful of cities starting to pick up,” <a href="https://www.bloomberg.com/video/u-s-home-prices-starting-to-stabilize-low-says-nStyghy~Qi~zyhIbALD7Kg">he told Bloomberg TV</a>.
Low says home sales are rising and prices are stabilising.
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US house prices rise 1.3% in April, with San Francisco and Washington the strongest performers: Case-Schiller index

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

Joel Robinson

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

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

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

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

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

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