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Another landmark Australian CBD hotel has been acquired by an Asian property group, with Hong Kong-listed Shangri-La Asia paying $352 million to fully own the Sydney’s Shangri-La Hotel in The Rocks.
<img src="/images/stories/2012/06/shangri-la_hotel.jpg" width="470">
The acquisition of the leasehold property follows the <a href="https://www.propertyobserver.com.au/leisure/malaysian-reit-pays-%24415-million-for-marriott-five-star-hotel-portfolio/2012061455118" target="_blank">Malaysia-listed Starhill Real Estate Investment Trust, paying $415 million</a> earlier this month for a portfolio of three five-star Marriott hotels – the Sydney Harbour Marriott, the Brisbane Marriott and the Melbourne Marriott.
Asian buyers have accounted for 93% of all hotel sales this year.
<img src="/images/stories/2012/06/shangri3.jpg">
The transaction, which is due to be completed by no later than July 31 consists of $330 million for the hotel and $22.4 million for for its net current assets (mostly cash).
Audited results for the year ending March 31 show the hotel made an after tax profit of $3.25 million.
Shangri-La Asia is owned by the billionaire Kuok family, which has interests in property, manufacturing and media via a substantial shareholding in the South China Morning Post and a stake in Hong Kong television group Television Broadcasts Limited (TVB).
Shangri-La Asia has managed the hotel for the Government Investment Corporation of Singapore since 2003.
The price paid for the Shangri-La Sydney is well above the $249 million paid for the Sydney Harbour Marriott Hotel at Circular Quay – both hotels have 563 rooms – with the sale price surprising the Sydney hotel market, reported the Australian Financial Review.
The 36-storey Shangri-La Sydney stands on Cumberland Street in The Rocks, with spectacular views across the harbour taking in the Sydney Harbour Bridge and Opera House.
<img src="/images/stories/2012/06/shangri4.jpg">
The sale price equates to $626,000 per room.
The hotel stands on land that is owned by the Sydney Harbour Foreshore Authority, which sold a 99-year leasehold over the site in 1988.
Sydney hotel occupancy rates are <a href="https://www.propertyobserver.com.au/leisure/hotel-occupancy-rates-to-reach-68-by-2014-with-perth-hotels-forecast-to-outperform-sydney-deloitte/2012052254785" target="_blank">forecast to rise to 88% by the end 2014</a>, a rise of only 2% from current levels, according to the Deloitte Access Economics Tourism &amp; Hotel Outlook report.
Shangri-La Asian operates 16 hotels globally with a collective 5,600 rooms.
Shangri-La Hotels are in Vancouver, New Delhi, Oman, Manila, Abu Dhabi (two hotels), Dubai (two hotels), Putrajaya and Kuala Lumpur (in Malaysia), Taipei and Tainan (in Taiwan); and Beijing, Changzhou.
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lschlesinger-FZcF9M3vE6

Sydney Shangri-La Hotel sells to Hong Kong Shangri-La Asia group for record $352 million

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Two out of the three commercial towers to be built at Lend Lease’s $6 billion Barangaroo South Sydney CBD harbourside project are more than 70% leased following agreements with Westpac and KPMG. 
Westpac has entered into an agreement with Lend Lease to take approximately 70% of the commercial floor space in the first tower to be constructed at development site. 
The bank will take 60,000 square metres in the Barangaroo building currently known as “C4” and expects to occupy the building from 2015. 
<img src="/images/stories/2012/06/barangaroo1.jpg">
Lend Lease has also entered into a lease agreement with accounting firm KPMG in the second tower, which is conditional on funding, which combined with Lend Lease’s own commitment to move its offices to the second tower will take up over 75% of commercial floor space. 
KPMG currently leases about 28,000 square metres in the KPMG Centre at 10 Shelley Street at King Street Wharf. 
KPMG is also expected to commence its move into the second tower in 2015. 
The lease agreements, which cover over 120,000 square metres of office space, represent Australia’s largest ever commercial leasing commitment for a single development. 
The lease agreements were foreshadowed by the Sydney Morning Herald’s Carolyn Cummins in September 2010. 
Westpac currently has offices in nine sites across Sydney’s CBD, and the new site will enable the group to consolidate into two locations – its existing head office at 275 Kent Street and the new Barangaroo building. 
The bank also announced that Lend Lease has agreed to purchase two Westpac-owned buildings at 182 George Street and 33-35 Pitt Street. 
"Bringing our Sydney CBD teams together in the landmark Barangaroo development and our nearby Westpac Place headquarters will enable our employees to benefit from an attractive, highly efficient and collaborative working environment in a vibrant financial services centre,” says Westpac CEO Gail Kelly. 
“This development will also be Australia's first large-scale carbon neutral community, which is important to Westpac given our position as a global leader in sustainability,” says Kelly. 
Commenting on the lease agreements, Lend Lease Group CEO and managing director Steve McCann says its ability to attract leading tenants like Westpac and KPMG “reflects the quality of what we are building at Barangaroo South”. 
“Today we have announced Australia’s largest ever commercial leasing commitment for a single development. 
“Our original assessment required only one commercial tower to be delivered in the first phase of the project, so we are very pleased to have leased two towers concurrently. 
“We are currently in detailed discussions with capital partners for the funding and development of the commercial towers at Barangaroo South. 
“The investors are engaged in exclusive due diligence before entering into binding commitments. In line with the Group’s strategy of investing alongside capital partners, Lend Lease intends to invest 25% of the equity in the first two towers.” 
 
<hr class="system-pagebreak">
 
“Construction works at Barangaroo South continue to progress well with the perimeter retention wall now complete and piling for the first commercial tower underway,” says McCann.
Barangaroo South will have about 330,000 square metres of office space upon completion.
There are plans for three commercial building known as C3 (49 storeys), C4 (42 storeys) and C5 (39 storeys), which are due to be completed in 2015 and 2016.
Colliers International alongside Jones Lang LaSalle and DTZ Australia have been appointed to assist Lend Lease on managing tenant interest and leasing at Barangaroo. 
DTZ international director of leasing John Hickey says demand from tenants has been incredibly strong and that pre-commitment leasing announcements and recent development approvals “will give a shot in the arm to the Sydney office leasing market”. 
Jones Lang LaSalle’s Australian head of leasing Kevin George says momentum in the Sydney office leasing market will now build following more certainty around the delivery of space in the 2015 timeframe, when Barangaroo South is completed. 
“We expect a surge of activity from medium to smaller tenants now that it is known who the anchor tenants for the first two towers of the development will be,” he says. 
“The interest in the Barangaroo development since the bid phase has been exceptional and we expect the completion in 2015 will coincide with an uptick in the financial services sector. 
Deloitte Access Economics projects that the finance and insurance sector in the Sydney CBD will grow by 1.9% in 2014 and 3.8% in 2015. 
“Already there are about 170,000 people employed in NSW’s finance and insurance services sector, representing over 40% of that industry in Australia,” says George. Mark Lacey, national director of office leasing at Colliers International, describes Barangaroo as a unique project combining a CBD location with parklands and waterfront access. 
“The compelling reasons why organisations will locate to Barangaroo are the large floor plates, the sustainability features of the precinct, the incredible amount of amenity that is being created for staff including retail and leisure activities around the waterfront and the new transport connections,” he says. 
“Tenants at Barangaroo will benefit in a way that is not possible elsewhere in the Sydney CBD by having this amenity on the doorstep of their work environment.”
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Westpac and KPMG to take up more than 70% in two of Lend Lease’s Barangaroo South towers 

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FKP’s $150 million Melbourne apartment project Aerial is running behind schedule and settlements will now occur in October, the diversified Queensland-based property group has revealed.
The project was due to be completed in the first quarter of the 2012-13 financial year, but settlements will now only occur in the second quarter.
“The external building company contracted to the Aerial project has now advised that practical completion will be delayed until September 2012, with settlements commencing in October 2012,” said FKP in a statement to the ASX.
The project is being built by Melbourne family-owned building firm Hanson Yuncken, which dates back to 1918 and has completed more than 4,500 projects.
Property Observer understands that weather and union issues may have contributed to the delay with Hanson Yuncken bringing across additional staff from NSW to get the project finished.
“FKP remains committed to delivering a high quality product to the market. Aerial is over 85% pre-sold,” says the developer.
“Given that Aerial will settle after the 2012 financial year, second half distribution is due to be paid, the board has deemed it appropriate to reduce the 2012 financial year second-half distribution from 1.9¢ per share as previously advised at the half year results announcement in February 2012 to 1.4¢ per share bringing the total estimated distribution for the 2012 financial year to 2.8¢ per share.”
FKP’s full-year profit guidance remains unchanged as stated in its half-year results.
The developer says it will deliver an underlying profit after tax in the range of $91.9 million to $104.3 million.
Aerial features 144 individual apartments with a selection of one-, two-, three-bedroom apartments as well as sub-penthouses and penthouses rising above Camberwell Junction.
Around 95% of the sales have been to local buyers, with a mix of owner-occupiers and investors purchasing the apartments.
Commercial retail space has been leased to audio retailer Bang &amp; Olufsen and Jetts Gym. The Meat &amp; Wine Company will lease heritage-listed English, Scottish and Australian (ES&amp;A) Bank building, which has been converted into restaurant space by architects Wood Marsh.
<img src="/images/stories/2012/06/aerial.jpg">
The series of striking, elliptical glass building was designed by architects Woods Marsh and includes two towers, the tallest rising 14 levels.
It is being developed on the former Henley Honda dealership site at the intersection of Burke, Camberwell and Riversdale roads.
In 2009 FKP successfully lobbied the Victorian Civil and Administrative Tribunal (VCAT) to boost the number of apartments in the project by 40% to 144.
FKP had to fight off local residents opposed to the development to win approval for the scheme.
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Completion of FKP’s apartment project Aerial in Camberwell Junction delayed

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Mining states Western Australia and Queensland have recorded the biggest rises in the percentage of households in mortgage stress, according to the results of the 2011 census.
The census reveals the percentage of households with mortgage repayments greater than 30% of household income – the widely accepted measure of mortgage stress.
In WA, this figure has risen from 7.8% to 10.2% of households in the space of five years, while the proportion of Queensland households in mortgage stress has increased from 7.7% to 9.7%.
WA now has the second highest proportion of borrowers in mortgage stress, behind NSW (10.5%), having surpassed Victoria (10.1%) since the 2006 census.
The biggest rise in mortgage repayments between 2006 and 2011 occurred in the Northern Territory – up $758 – followed by WA ($737).
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="86">
State
</td>
<td valign="top" width="80">
Monthly mortgage repayment - 2011
</td>
<td valign="top" width="80">
Monthly mortgage repayment - 2006
</td>
<td valign="top" width="77">
Difference
</td>
<td valign="top" width="82">
% households with mortgage repayments greater than 30% of household income- 2011
</td>
<td valign="top" width="82">
% households with mortgage repayments greater than 30% of household income- 2006
</td>
</tr>
<tr>
<td valign="top" width="86">
NSW
</td>
<td valign="top" width="80">
$1,993
</td>
<td valign="top" width="80">
$1,517
</td>
<td valign="top" width="77">
$476
</td>
<td valign="top" width="82">
10.5%
</td>
<td valign="top" width="82">
9.6%
</td>
</tr>
<tr>
<td valign="top" width="86">
VIC
</td>
<td valign="top" width="80">
$1,700
</td>
<td valign="top" width="80">
$1,252
</td>
<td valign="top" width="77">
$448
</td>
<td valign="top" width="82">
10.1%
</td>
<td valign="top" width="82">
8.7%
</td>
</tr>
<tr>
<td valign="top" width="86">
QLD
</td>
<td valign="top" width="80">
$1,850
</td>
<td valign="top" width="80">
$1,300
</td>
<td valign="top" width="77">
$550
</td>
<td valign="top" width="82">
9.7%
</td>
<td valign="top" width="82">
7.7%
</td>
</tr>
<tr>
<td valign="top" width="86">
SA
</td>
<td valign="top" width="80">
$1,500
</td>
<td valign="top" width="80">
$1,018
</td>
<td valign="top" width="77">
$482
</td>
<td valign="top" width="82">
8.8%
</td>
<td valign="top" width="82">
6.9%
</td>
</tr>
<tr>
<td valign="top" width="86">
WA
</td>
<td valign="top" width="80">
$1,950
</td>
<td valign="top" width="80">
$1,213
</td>
<td valign="top" width="77">
$737
</td>
<td valign="top" width="82">
10.2%
</td>
<td valign="top" width="82">
7.8%
</td>
</tr>
<tr>
<td valign="top" width="86">
TAS
</td>
<td valign="top" width="80">
$1,300
</td>
<td valign="top" width="80">
$867
</td>
<td valign="top" width="77">
$433
</td>
<td valign="top" width="82">
7.5%
</td>
<td valign="top" width="82">
5.6%
</td>
</tr>
<tr>
<td valign="top" width="86">
NT
</td>
<td valign="top" width="80">
$2,058
</td>
<td valign="top" width="80">
$1,300
</td>
<td valign="top" width="77">
$758
</td>
<td valign="top" width="82">
7.7%
</td>
<td valign="top" width="82">
6%
</td>
</tr>
<tr>
<td valign="top" width="86">
ACT
</td>
<td valign="top" width="80">
$2,167
</td>
<td valign="top" width="80">
$1,500
</td>
<td valign="top" width="77">
$667
</td>
<td valign="top" width="82">
7.8%
</td>
<td valign="top" width="82">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="86">
Nation-wide
</td>
<td valign="top" width="80">
$1,800
</td>
<td valign="top" width="80">
$1,300
</td>
<td valign="top" width="77">
$500
</td>
<td valign="top" width="82">
9.9%
</td>
<td valign="top" width="82">
8.4%
</td>
</tr>
</tbody></table>
Source: Census 2011 (ABS)
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Mortgage stress levels rise most since 2006 in WA and Queensland: ABS census 2011

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Eight mortgage brokers have been expelled by the Mortgage &amp; Finance Association of Australia (MFAA) over the course of the 2011-12 financial year.
This is double the number of brokers expelled in the previous year, with the majority of expulsions due brokers engaging in serious misconduct through submitting fraudulent loan applications to lenders.
“The numbers of expelled members are minuscule compared with our total number of 11,200 members, however the number is still double those expelled in the 2010 financial year,” says MFAA chief executive Phil Naylor. “The increased expulsions demonstrate the MFAA's determination to ensure the highest professional standards of our members, as well as a strict and independent disciplinary procedure and very high education standards,” he says. The MFAA has a set of disciplinary rules to deal with complaints of alleged misconduct against an MFAA member, initially involving an external investigating officer, who then may refer the matter to the MFAA Tribunal.
The MFAA Tribunal has the power to impose various sanctions on a member for misconduct, including expulsion from membership of the MFAA. Naylor says mortgage brokers are a vital channel for home loans, with a 42% share of the mortgage market.
“On this basis, we need to enforce strict rules on our members to ensure they deliver the best possible service and customer protection,” he says.
A list of expelled members is provided on the MFAA website.
Since 2008 the MFAA has been publishing reasons for its expulsion decisions.
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Number of expelled mortgage brokers doubles to eight in past year: MFAA

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Median monthly mortgage payments increased by $500 between 2006 and 2011, representing a 38% increase over this time frame, according to the 2011 census.
This is lower than the <a href="https://www.propertyobserver.com.au/landlords/renters-paying-50-more-a-week-in-rent-since-2006-with-increase-in-proportion-of-households-experiencing-rental-stress-abs-census-2011/2012062155220" target="_blank">50% increase in weekly rental payments</a> recorded between the two censuses.
The median monthly mortgage repayment in Australia was $1,800 in the 2011 census, compared with $1,300 in the 2006 census.
For 9.9% of households, their mortgage repayment was more than 30% of their income – the common definition of mortgage stress – up from 8.4% in the 2006 census.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td width="319">
<a title="Measures the monthly amount spent on mortgage repayments for occupied private dwellings being purchased, including dwellings being purchased under a rent/buy scheme." target="_blank" href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter41802011">Mortgage monthly repayments</a>
</td>
<td width="104">
Australia
</td>
<td width="38">
%
</td>
<td width="101">
2006
</td>
<td width="38">
%
</td>
</tr>
<tr>
<td width="319">
Median mortgage repayments
</td>
<td>
1,800
</td>
<td>
--
</td>
<td>
1,300
</td>
<td>
--
</td>
</tr>
<tr>
<td colspan="5" width="602">
 
</td>
</tr>
<tr>
<td width="319">
Households with mortgage repayments less than 30% of household income
</td>
<td>
--
</td>
<td>
90.1
</td>
<td>
--
</td>
<td>
91.6
</td>
</tr>
<tr>
<td width="319">
Households with mortgage repayments greater than 30% of household income
</td>
<td>
--
</td>
<td>
9.9
</td>
<td>
--
</td>
<td>
8.4
</td>
</tr>
</tbody></table>
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Monthly mortgage repayments up 38% to $1,800 per month since 2006: ABS census 2011

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Median rental payments have risen by $95 per week between 2006 and 2011, according to 2011 census data released today by the ABS.
The represents a 50% increase over the five-year period.
Median national weekly rent is now $285 per week, compared with $190 in 2006.
The 2011 census also found that the proportion of households with rent payments greater than 30% of household income – the common definition of rental stress – rose slightly from 9.3% to 10.4%. 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="319">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter49902011" target="_blank" title="Records the weekly rent paid for an occupied private dwelling and includes dwellings being occupied rent free.">Rent weekly payments</a>
</td>
<td width="104">
Australia
</td>
<td width="38">
%
</td>
<td width="101">
2006
</td>
<td width="38">
%
</td>
</tr>
<tr>
<td width="319">
Median rent
</td>
<td>
285
</td>
<td>
--
</td>
<td>
190
</td>
<td>
--
</td>
</tr>
<tr>
<td width="602" colspan="5">
 
</td>
</tr>
<tr>
<td width="319">
Households with rent payments less than 30% of household income
</td>
<td>
--
</td>
<td>
89.6
</td>
<td>
--
</td>
<td>
90.7
</td>
</tr>
<tr>
<td width="319">
Households with rent payments greater than 30% of household income
</td>
<td>
--
</td>
<td>
10.4
</td>
<td>
--
</td>
<td>
9.3
</td>
</tr>
</tbody></table>
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Renters paying 50% more a week in rent since 2006 with increase in proportion of households experiencing rental stress: ABS census 2011

<html><body>
The proportion of people living in detached houses has fallen by one percentage point between 2006 and 2011, with a shift towards more people living in units and townhouses, according to census data released today by the ABS. 
In total there are now 9,117,033 million private dwellings in Australia up from 8,426,559 private dwellings counted in the 2006 census. 
Of these private dwellings, 75.6% are separate houses, compared with 76.6% in the 2006 census, with proportional increases in the number of people living in a flat, unit or apartment and those living in a semi-detached, terraced house or townhouse. 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="317">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter29902011" target="_blank" title="This variable classifies the structure of private dwellings enumerated in the Census. The information is determined by the Census collector.">Dwelling structure</a>
</td>
<td width="104">
Australia
</td>
<td width="38">
%
</td>
<td width="104">
2006
</td>
<td width="38">
%
</td>
</tr>
<tr>
<td width="317">
Separate house
</td>
<td>
5,864,573
</td>
<td>
75.6
</td>
<td>
5,472,527
</td>
<td>
76.6
</td>
</tr>
<tr>
<td width="317">
Semi-detached, row or terrace house, townhouse etc
</td>
<td>
765,978
</td>
<td>
9.9
</td>
<td>
658,858
</td>
<td>
9.2
</td>
</tr>
<tr>
<td width="317">
Flat, unit or apartment
</td>
<td>
1,056,236
</td>
<td>
13.6
</td>
<td>
932,862
</td>
<td>
13.1
</td>
</tr>
<tr>
<td width="317">
Other dwelling
</td>
<td>
66,666
</td>
<td>
0.9
</td>
<td>
76,080
</td>
<td>
1.1
</td>
</tr>
</tbody></table>
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Proportion of people living in apartments and townhouses rises: ABS 2011 census

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The federal government has removed the contentious doubling of the foreign investors’ withholding tax from its planned series of budgetary changes.
Instead the government plans to reintroduce the tax increase as a separate bill in the next few days.
The tax is charged on income paid to foreign investors who invest in managed schemes, many of which fund large infrastructure and property projects in Australia.
The raising of the current rate of 7.5% to 15% was due to kick in on July 1.
Assistant Treasurer David Bradbury still expects to see the bill passed in time for the next financial year but admits that it “continues to be a matter where there is some contention”, the Australian Financial Review reports.
But he adds that the government believes there is still a “very strong case” in support of the tax increase.
“We think it is appropriate that we implement these changes,” he says.
The raising of the tax threshold has been <a href="https://www.propertyobserver.com.au/tax/treasurys-doubling-of-withholding-tax-flawed-and-economically-harmful-property-council/2012061955192" target="_blank">slammed by the Property Council of Australia</a> (PCA), developer Lend Lease and managed funds representative body the Financial Services Council over fears it will scare off foreign investors.
Yesterday the PCA criticised the decision of a House of Representatives Economics Committee backing the doubling of the withholding tax.
“By doubling our withholding tax rate, Australia reduces its ability to compete with the lower effective rates of other countries” says Property Council chief executive Peter Verwer.
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Government to introduce withholding tax increase as separate bill

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Strong apartment sales in two of its Perth projects have caused ASX-listed developer Finbar upgrade its profit forecast for the 2012 financial year ending June 30.
The developer now anticipates a full-year profit after tax of approximately $28 million, an increase of $4 million from previous guidance.
The $28 million profit figure would be a record for Finbar and 17% above the 2011 financial year profit of $23.5 million, also a record for the company.
Finbar says the higher-than-anticipated profit figure is “largely attributable to a strong level of sales and settlement conversions” achieved at its recently completed 18 on Plain and Fairlanes apartment projects, “along with the robust leasing take-up and valuation of the recently completed Fairlanes Office project, which the company has retained for investment income purposes”.
Fairlanes is a <a href="https://www.propertyobserver.com.au/developments/finbars-east-perth-project-fairlanes-complete-and-almost-sold-out/2012042954465" target="_blank">seven-level tower project worth $160 million on Adelaide Terrace in East Perth</a>, which was completed in April.
The project features 128 apartments and 7,000 square metres of office space.
Managing director Darren Pateman tells Property Observer all but one of the apartments has now sold. Prices paid in the development have averaged $850,000.
The $20.5 million 18 on Plain project was completed in February and features 29 apartments on Plain Street in East Perth as well as commercial and office space.
Pateman says all residential units in 18 on Plain have been sold, with two commercial lots remaining.
Prices for two-bedroom units averaged around the $650,000 mark.
The profit guidance update has been made without Finbar receiving or relying on any future revenue generated from its Pelago West, a 113-apartment project in Karratha, in the mining-rich Pilbara region, due to be completed in June.
First settlements on Pelago West are anticipated in July.
Revenue from this project is anticipated to be included in results for the first half of the financial year ending June 30, 2013.
“We are delighted to report such a strong financial performance to our shareholders. This result highlights our key focus of capitalising on our competitive advantages and building upon our strong WA market position in challenging economic times,” says Pateman.
“Finbar stands to benefit substantially from improving economic conditions and the realisation of our first investment in the Pilbara early in the next financial year.”
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Finbar upgrades profit guidance following strong East Perth apartment sales

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.”

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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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