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A lack of infrastructure and long commutes are likely to prevent property values rising in Melbourne’s six new suburbs, says market commentator Monique Sasson Wakelin.
Speaking on ABC radio, Wakelin said one of the limitations of people who live out there will be that they will be “reliant on V-Line [trains] and/or their car”.
“Given the distances we are talking about out of the city, where most of the employment opportunities are, there limitations to what people can expect in the medium term and even in the long term in terms of capital appreciation,” Wakelin says.
The six new suburbs are Diggers Rest near Sunbury, Lockerbie near Greenvale, Lockerbie North, Manor Lakes in Wyndham, Merrifield West in the city of Hume and Rockbank North near Melton.
They extend Melbourne’s urban growth boundary by almost 6,000 hectares of former farm and green wedge land.
They are between 20 to 40 kilometres from the Melbourne CBD, with Lockerbie North the furthest away and Rockbank North the closest at about 20 kilometres.
Rockbank North and Lockerbie are serviced by nearby but busy V/Line rail stations, with a rail station is ''proposed'' in Lockerbie but there is no timeline for its completion.
However, Wakelin says for those aspiring to buy own homes but have very limited funds to do it, “this is a fabulous opportunity to get in”.
She says the new suburbs present opportunities for those wanting their own home on a relatively large block and with access to the bush – as long as buyers don’t mind the commute.
“It’s a heck of a commute – let’s face it … and not very green either if you are taking the car or going by train,” she says.
“If you’re feeling energetic, on a nice day when it’s not teeming with rain or very hot, you could push-bike it in.”
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Little capital appreciation likely in six new Melbourne suburbs due to lack of transport: Monique Sasson Wakelin

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The national residential vacancy rate remained unchanged at a tight 1.8% in May, with Melbourne having the highest number vacancies and the highest vacancy rate, according to SQM Research. 
There are currently 50,408 residential vacancies nationally, representing a fall of 440 vacancies month-on-month.
Year-on-year however, vacancies have risen by 7,270, with the national vacancy rate increasing by 0.2% since May 2011. 
None of the eight capital cities recorded an increase in the vacancy rate over the month, with vacancies tightening by 0.1% in Brisbane, Canberra and Darwin in May. 
Melbourne has the highest vacancy rate by far at 3.1%, while Darwin is the tightest market with just 100 vacancies, or a vacancy rate of 0.4%. 
The Real Estate Institute of Australia (REIA) says a vacancy rate of 3% or higher is “generally considered to reflect an oversupply of rental accommodation” while anything under 3% indicates a “strong demand for rental accommodation”.
 
Here’s a guide to residential vacancies in the eight capital cities starting with Melbourne:
<img src="/images/stories/2012/06/11427.gif">
The number of residential vacancies in Melbourne, reflecting a May vacancy rate of 3.1%. A year ago the vacancy rate was 2.4%, with 8,578 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/9140.gif">
The number of residential vacancies in Sydney, reflecting a May vacancy rate of 1.7%. A year ago the vacancy rate was 1.3%, with 7,034 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/4120.gif">
The number of residential vacancies in Brisbane, reflecting a May vacancy rate of 1.4%. A year ago the vacancy rate was 1.6%, with 4,584 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/2680.gif">
The number of residential vacancies in Adelaide, reflecting a May vacancy rate of 1.6%. A year ago the vacancy rate was 1.3%, with 2,041 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/1157.gif">
The number of residential vacancies in Perth, reflecting a May vacancy rate of 0.6%. A year ago the vacancy rate was 1%, with 1,770 properties available for rent
 
<hr>
<img src="/images/stories/2012/06/753.gif">
The number of residential vacancies in Hobart, reflecting a May vacancy rate of 2.6%. A year ago the vacancy rate was 1.7%, with 467 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/434.gif">
The number of residential vacancies in Canberra, reflecting a May vacancy rate of 0.9%. A year ago the vacancy rate was 0.6%, with 272 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/100d.gif">
The number of residential vacancies in Darwin, reflecting a May vacancy rate of 0.4%. A year ago the vacancy rate was 1.3%, with 317 properties available for rent.
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Residential vacancies at 1.8% nationally in May with Melbourne's landlords facing biggest challenge at 3.1%: SQM 

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One of Melbourne’s most well-known nightspots and the former site of the Metro nightclub has been listed for sale by receivers Ferrier Hodgson, with Asian developers and nightclub operators showing interest.
The building dates back 100 years, starting life as a cinema.
The three-storey building, currently operating as live music venue The Palace, will be marketed exclusively by CBRE sales agents Mark Wizel, Josh Rutman and Scott Callow via an international public tender campaign closing on July 27.
The building is stands at 20-30 and 30A Bourke Street in the Melbourne CBD between Spring and Exhibition streets on a 1,442-square-metre site with 25 metres of Bourke Street frontage.
It is just a stone’s throw from the Victorian Parliament and well-known Melbourne eateries Grossi Florentino, The European and Pelligrini’s.
Wizel says early developer interest has “centred on the highest and best use for the property being a high-density residential project subject to the relevant planning approvals”.
“Sites of this size at the top end of Bourke Street are not readily available for acquisition and, as a result, we are anticipating strong interest from local and overseas buyers, with a particularly high level of enquiry expected from Singaporean, Malaysian and mainland Chinese developers.”
The property is also expected to attract both investors and potential owner-occupiers, given the highly lettable existing improvements – acts at the Palace have included Kylie Minogue, The Darkness and Kaiser Chiefs.
Callow says there has also been strong early interest from nightclub operators and publicans who could look “to restore ‘The Metro’ to its former glory days as one of Melbourne’s leading music and entertainment venues.”
Receiver and Ferrier Hodgson partner George Georges, who was appointed in February this year, says the landmark property had already generated significant interest.
“The Metro is well known as part of the fabric of life in central Melbourne,” he says.
“It’s a brilliantly located site with a huge variety of optional uses and tremendous potential for development.”
The 100-year old building has also been home to the Melbourne Revival Centre.
The property with reported $15 million expectations is owned by Kefi Nominees, directed by nightclub identity and property developer Jerry Pilarinos.
It has been put up for sale by Ferrier Hodgson after Pilarinos’s company Kefi Nominees was forced into administration by Bankwest.
Kefi acquired it in 2007 for $10 million from Irene Meletsis.
Kefi listed The Metro for sale in May last year through Colliers International with an asking price of $20 million as a residential development site, but without a building permit.
At the same time as Kefi listed The Metro for sale, Fairfax Media reported that Pilarinos sold an apartment project, the Tresor on the north-west corner of Chapel Street and Alexandra Avenue, to builder Fridcorp for around $13 million.
He also failed last year in a court bid to recoup $500,000 he invested into small technology company Computronics Holdings.
Songstress Lana Del Rey is listed as next to perform at the Palace, with 1980s icon Rick Astley appearing in November.
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Jerry Pilarinos' Kefi Nominees set to sell Melbourne venue The Palace, formerly the Metro nightclub

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Collapsed builder Reed Construction is confident of winning a legal claim of between $50 million and $60 million from the NSW govermnment with Reed Group owner Geoff Reed saying he will use the money to pay back around $70 million owed mainly to sub-contractors.
"Reed Constructions Australia Pty Ltd was forced into voluntary administration following the Roads and Maritime Services' (RMS) premature and unreasonable action in terminating its contracts with Reed Constructions, combined with both RMS and Department of Education and Communities Ministers announcing  that their respective departments do not owe Reed any money," said Geoff Reed in a statement on the company website.
"This assertion by the Ministers is not only premature and an apparent breach of the confidential Expert Panel process, but also contrary to Reed’s genuine belief that in excess of $60 million are owed by these Departments."
Reed says its financial difficulties have been caused by "issues solely relating to the matters in dispute with the NSW Government".
Last week Reed joined a long list of failing building companies after being placed in the hands of administrators with debts of about $70 million.
Other prominent building groups to collapse recently include 100-year-old builder <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012" target="_blank">Kell &amp; Rigby</a> and <a href="https://www.propertyobserver.com.au/news/st-hilliers-founder-says-government-owes-it-millions-but-reed-group-government-claim-rejected/2012052854859" target="_blank">St Hilliers Construction</a>.
Ferrier Hodgson partners John Melluish and Ryan Eagle were appointed administrators of Reed Construction as well as administrators of RST Nominees Pty Limited on June 15, 2012.
Most of the $70 million is owed to around 2,000 sub-contractors, who are listed as unsecured creditors, ranking behind employees.
Sub-contractors are being represented by debt-collecting company Recoup.
Melluish and Eagle say they will undertake an “urgent assessment of the financial position of the companies”.
“We will be doing everything we can to provide key stakeholders with clarity about the future of the company,” says Melluish.
“Reed Constructions suffered a number of losses on contracts largely arising from an inability to recover additional costs.”
A first meeting of creditors will be held on June 27 in Sydney.
Last month Reed Constructions was dropped as the contractor of four major NSW road projects after it failed to meet a deadline to prove that more than $200 million of works could be finished on time.
Reed claims it is owed money from the road projects as well as on work done on the government’s Building for the Education Revolution projects, a claim rejected by the NSW Department of Education.
Problems at Reed Constructions were highlighted as far back as February by NSW opposition leader John Robertson, who warned that the firm was on the brink of collapse with more than 1,500 jobs at risk.
The Reed website directs readers to the administrators’ statement.
Other businesses within the Reed Group will continue to operate as normal.
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Contractors must wait in line as Reed Construction prepares to sue NSW government following $70 million collapse

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The Commonwealth Bank is telling everyone it “CAN”, but it is ANZ and NAB that are steaming ahead this year when it comes to lending to owner-occupiers.
Analysis of APRA banking figures for the first four month of 2012 show that ANZ has written nearly $3.8 billion in owner-occupier mortgages and NAB more than $3.3 billion, growth of 3.2% and 2.6% respectively.
In comparison the Commonwealth Bank has written just $1.29 billion in new loans between January and the end of April (growth of 0.7%) while Westpac (including all its subsidiary brands) ranks outside the top four, managing $1.05 billion in new mortgages (growth of 0.6%).
Bankwest, owned by the Commonwealth Bank, wrote $1.46 billion (up 4%) in new loans ranking as the third biggest lender of 2012 with Suncorp also prominent with new lending totalling $1.14 billion – an increase of 5% over the first four months of the year.
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" nowrap width="62">
Rank
</td>
<td valign="top" nowrap width="155">
Bank
</td>
<td valign="top" nowrap width="82">
New lending Jan 1 to April 30
</td>
<td valign="top" nowrap width="92">
loan book  April 2012
</td>
<td valign="top" nowrap width="84">
loan book Dec 2011
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
1
</td>
<td valign="top" nowrap width="155">
ANZ
</td>
<td valign="top" nowrap width="82">
$3,795
</td>
<td valign="top" nowrap width="92">
$122,199
</td>
<td valign="top" nowrap width="84">
$118,404
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
2
</td>
<td valign="top" nowrap width="155">
NAB
</td>
<td valign="top" nowrap width="82">
$3,310
</td>
<td valign="top" nowrap width="92">
$128,602
</td>
<td valign="top" nowrap width="84">
$125,292
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
3
</td>
<td valign="top" nowrap width="155">
BankWest
</td>
<td valign="top" nowrap width="82">
$1,456
</td>
<td valign="top" nowrap width="92">
$37,098
</td>
<td valign="top" nowrap width="84">
$35,643
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
4
</td>
<td valign="top" nowrap width="155">
CBA
</td>
<td valign="top" nowrap width="82">
$1,287
</td>
<td valign="top" nowrap width="92">
$177,874
</td>
<td valign="top" nowrap width="84">
$176,588
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
5
</td>
<td valign="top" nowrap width="155">
Suncorp
</td>
<td valign="top" nowrap width="82">
$1,143
</td>
<td valign="top" nowrap width="92">
$22,004
</td>
<td valign="top" nowrap width="84">
$20,861
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
6
</td>
<td valign="top" nowrap width="155">
Westpac
</td>
<td valign="top" nowrap width="82">
$1,047
</td>
<td valign="top" nowrap width="92">
$167,292
</td>
<td valign="top" nowrap width="84">
$166,244
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
7
</td>
<td valign="top" nowrap width="155">
Bendigo &amp; Adelaide Bank
</td>
<td valign="top" nowrap width="82">
$787
</td>
<td valign="top" nowrap width="92">
$14,295
</td>
<td valign="top" nowrap width="84">
$13,508
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
8
</td>
<td valign="top" nowrap width="155">
Bank of Queensland
</td>
<td valign="top" nowrap width="82">
$381
</td>
<td valign="top" nowrap width="92">
$12,095
</td>
<td valign="top" nowrap width="84">
$11,714
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
9
</td>
<td valign="top" nowrap width="155">
Macquarie Bank
</td>
<td valign="top" nowrap width="82">
$287
</td>
<td valign="top" nowrap width="92">
$1,951
</td>
<td valign="top" nowrap width="84">
$1,664
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
10
</td>
<td valign="top" nowrap width="155">
Members Equity Bank
</td>
<td valign="top" nowrap width="82">
$260
</td>
<td valign="top" nowrap width="92">
$4,360
</td>
<td valign="top" nowrap width="84">
$4,099
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
11
</td>
<td valign="top" nowrap width="155">
Citigroup
</td>
<td valign="top" nowrap width="82">
$243
</td>
<td valign="top" nowrap width="92">
$5,011
</td>
<td valign="top" nowrap width="84">
$4,767
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
12
</td>
<td valign="top" nowrap width="155">
AMP Bank
</td>
<td valign="top" nowrap width="82">
$201
</td>
<td valign="top" nowrap width="92">
$5,333
</td>
<td valign="top" nowrap width="84">
$5,132
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
13
</td>
<td valign="top" nowrap width="155">
ING Direct
</td>
<td valign="top" nowrap width="82">
$166
</td>
<td valign="top" nowrap width="92">
$27,878
</td>
<td valign="top" nowrap width="84">
$27,712
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
14
</td>
<td valign="top" nowrap width="155">
Heritage Bank
</td>
<td valign="top" nowrap width="82">
$115
</td>
<td valign="top" nowrap width="92">
$3,014
</td>
<td valign="top" nowrap width="84">
$2,899
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
15
</td>
<td valign="top" nowrap width="155">
HSBC Bank Australia
</td>
<td valign="top" nowrap width="82">
$40
</td>
<td valign="top" nowrap width="92">
$3,500
</td>
<td valign="top" nowrap width="84">
$3,460
</td>
</tr>
</tbody></table>
Source: APRA Figures are in millions
Suncorp Bank head of personal lending Tony Meredith attributes the growth in its mortgage lending pipeline in recent months to “an attractive product and service proposition in target markets and a renewed focus on the broker channel”.
Growth has come from the bank’s key target markets in the mortgage space – refinancers and first-home owners.
“We’ve been growing strongly in the broker space, having reaffirmed our commitment to, and investment in, this important channel through a range of technology, commission and servicing improvements,” Meredith tells Property Observer.
“Suncorp Bank consistently has greater customer satisfaction scores than the major banks for both personal and business lending. We continue to see disenfranchised customers of the major banks make the switch to Suncorp Bank, testament to our strong customer proposition in making it easier to get a good value home loan, suited to the individual’s needs.”
Smaller banks feature prominently on the list, with Bendigo &amp; Adelaide Bank managing mortgage lending growth of 5.8% and Members Equity bank 6.3%.
ING, which has the sixth biggest mortgage book (or fifth if you put Commonwealth Bank and Bankest together) has written just $166 million in new owner-occupier mortgages over the first four months of the year and ranks 13th, behind a swathe of smaller lenders.
Lisa Claes, executive director of direct business at ING Direct, says the bank is satisfied with its current rate of mortgage growth, which she says is “on a par of where it has been since the GFC”.
“We are not driven by market share targets, but by a sustainable growth proposition.
“We want to grow our mortgage book responsibly – we are happy with where we are, but we are not complacent,” she says.
Macquarie Bank, which grew its investment housing lending book by 33% over the same four-month period, was also the top owner-occupier lender in percentage terms, growing its book by 17% and benefiting from its closer ties to the mortgage broker market.
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ANZ and NAB steamrolling over CommBank and Westpac in owner-occupier mortgage lending

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A growing number of self-managed super fund investors are using related-party loans to buy property, but they should tread carefully, according to Heather Gray, a partner at DLA Piper and chairwoman of the Superannuation Committee of the Law Council of Australia.
Related-party loans are those provided by a member of the fund or by a family member and can seem an attractive option SMSF investors providing funding at a higher loan-to-value ratio (LVR) and lower interest rates than those provided by a bank.
But Gray says the issue of related-party loans came up very often for advisors in relation to “compliance issues”.
Her warning comes as Australian National Audit Office (ANAO) reports of the continuing growth of the SMSF sector, with 32,875 new funds registered in 2010-11 compared with 29,578 in the previous financial year, taking the total number of SMSFs as of June 2011 to 442,528 with 841,283 members.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/06/anao.gif" rel="shadowbox"><img src="/images/stories/2012/06/anaothumb.gif"></a>
Gray says the ATO views related-party loans in the same way it views investments made into the fund that are not at arm’s length.
“If the interest rate is too low the ATO may look at the deal and say, ‘This is a sham’ – it’s not really a loan but a contribution and just a way of getting money into the fund without breaching the contribution cap,” Gray told delegates at the 2012 Institute of Chartered Accountants in Australia’s Business Forum.
“You would then be taxed unfavourably because you exceeding the contribution cap and all the advantages of borrowing through your SMSF [to acquire property] would be lost.”
Conversely, if the interest rate is too high the ATO may rule that it breaches the sole purpose test through providing a “non-retirement” benefit to the members.
In nearly all cases, Gray says when the ATO has targeted a fund it has due to the fund not satisfying the sole-purpose test.
The sole-purpose test requires that an SMSF be maintained to provide benefits to members upon their retirement, or their dependants if the member dies before retirement.
According to the ANAO, since 2004–05, the number of SMSFs has increased by 64%.
SMSF sector is the largest superannuation sector by number of funds, and in 2011 held 30% of all superannuation assets ($407.6 billion).
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More SMSFs borrowing from trust fund members to acquire property creating compliance issues

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The impending end of off-the-plan stamp duty concessions for NSW property investors has helped the Crown Group sell out all apartments in stage one of its V tower in Parramatta.
<img src="/images/stories/2012/06/v1.jpg">
From July 1 investors and non-first-home buyers will get a $5,000 grant from the NSW government for off-the-plan purchase under $650,000, compared with a maximum of $22,490 under the current arrangement for purchases under $600,000.
The $300 million “vertical village” was officially launched over the weekend with a display suite opening.
The project has been selling for the past few months, with construction of the 27-storey tower – set to be Parramatta’s tallest building – beginning in April.
<img src="/images/stories/2012/06/v2.jpg">
Fairfax Media reported the sell-out of stage one and a rush to buy over the weekend. The developer has now moved onto selling stage two apartments.
Property Observer was told in April that 86 apartments had already been sold in the project. No current sales tally has been provided today.
It was launched in Singapore on April 19.
The building will feature 466 luxury apartments, a resort-style hotel with pool, gym and conference facilities, as well as office and retail space and is due for completion in 2014.
The project features 50 studios (from 40 square metres) priced from $350,000; 70 one-bed-plus study apartments (from 50 square metres) from $399,000; 260 two-bedroom apartments, which include two studies, (from 80 square metres) from $500,000; and 50 three-bedroom units (from 100 square metres) from $600,000.
<img src="/images/stories/2012/06/v3.jpg">
The tower was designed by architects Allen Jack + Cottier, with interior spaces designed by Japanese/Australian architect Koichi Takada.
The design includes modern aluminium-clad curtain walling, concealed balconies and a glazed exterior that mirrors the energy of the city’s commercial district below.
Gardens located on three levels provide pockets of retreat and a rooftop garden offers views of Parramatta and its surrounds.
Crown group chief executive Iwan Sunito says the development will provide a world-class urban lifestyle in Parramatta.
V by Crown is located in the heart of Parramatta’s city centre, close to Church Street’s eateries and Westfield shopping centre, rail and ferry connections, as well as Parramatta Heritage Parklands.
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Stamp duty handout expiry helps sell out first stage of V development in Parramatta

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Consumers are growing more confident that mortgage rates will continue to fall over the next 12 months following the May and June RBA rate cuts, but a significant proportion still expect rates to rise, according to the June Westpac-Melbourne Institute consumer survey.
The June results show for the first time since Westpac began asking the question (in February 2010) a majority of consumers (52%) expect mortgage rates to fall over the next 12 months.
This compares with the less than 40% who expected rates to fall when the question was last asked in February this year and fewer than 20% of consumers who thought so in August 2011 – before the RBA began its current rate cutting cycle.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune18.gif"><img src="/images/stories/2012/06/westpacjune18thumb.gif"></a>
Of those who expect rates to fall over the course of the next year the vast majority (83%) expect mortgage rates to fall by less than one percentage point, while the remaining 17% expect a fall in excess of one percentage point.
A quarter of consumers surveyed still expect mortgage rates to rise over the next year, while slightly less (23%) expect no change in mortgage rates.
Westpac senior economist Matthew Hassan says the results indicate that consumers have a “firmer sense of where rates are likely to head” but cautions that the “consensus is not particularly strong”.
“At 52%, the proportion expecting rates to fall is well short of the 70 to 90% that were calling rates to rise in surveys conducted in 2010-11.”
Hassan also points out that the responses from consumers to the question of where mortgage rates are heading fluctuated over the week they were asked indicating a “lack of conviction”.
“Responses over the course of the survey week (June 4 to June 10) – which was a very busy one for interest rate developments, economic surprises and the unfolding crisis in Europe – show significant daily fluctuations and a less certain view amongst those surveyed later in the week.
“The high and rising proportion saying they simply don’t know also suggests a more uncertain outlook for rates,” he says.
Hassan says the bottom line is that “predicting mortgage interest rates has become very hard” due to mixed signals in the “official guidance”. 
As an example he says the RBA has cut rates (usually a sign the economy is worsening) but affirmed “Australia’s positive prospects”. 
“Add to this the surprisingly upbeat first quarter economic data on the domestic front, the deeply threatening and uncertain situation in Europe, and the less predictable linkage between official cash rate changes and mortgage interest rates and it’s not surprising consumers are unsure about future moves,” he says. 
Hassan also points out that interest rate market pricing and economist surveys are equally unhelpful. 
“The former is being skewed by investors seeking ways to profit from downside risks to the global growth scenario – and implies 100bps of easing by year end. 
“Economist forecasts range from up 25bps to another 100bps in cuts to the cash rate with a median view of a 25 bps reduction (Westpac’s forecast is for 75 bps,” he says. 
“And in both cases the forecasts are for the official cash rate rather than the average standard variable mortgage rate,” he says. 
State-by-state responses to the question indicate that consumers from South Australia (59%) and NSW (56%) are the most optimistic about rates falling while those in Queensland (49%) are the least optimistic.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune181.gif"><img src="/images/stories/2012/06/westpacjune181thumb.gif"></a>
Men are more optimistic than women about rates falling, as are those that own their home outright or have a mortgage compared with renters.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune182.gif"><img src="/images/stories/2012/06/westpacjune182thumb.gif"></a>
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Consumer sentiment swings towards greater rate cut anticipation: Westpac 

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Westpac’s discount bank brand, Bank of Melbourne, has cut its benchmark three-year fixed rate by 20 basis points to 5.79%, one of the lowest rates on offer in the market. 
This matches Greater Building Society’s 5.79% three-year fixed rate. 
The bank of Melbourne has also reduced rates on its one- and two-year fixed-rate products by 15 basis points. 
Bank of Melbourne’s new fixed home loan rates under the Advantage Package are: 
<ul>
<li>1 year – 5.74% p.a. </li>
<li>2 years – 5.74% p.a. </li>
<li>3 years – 5.79% p.a. </li>
</ul>
In addition to the fixed-rate cuts, the bank has also lifted its life-of-loan discounts on packaged variable home loans. 
From tomorrow the bank is also offering life of loan discounts of up to 0.9% p.a. off new standard variable rate home loans through its Advantage package. 
“More customers are talking to us about fixing all, or part, of their home loan to help manage their finances and gain greater certainty in these uncertain times,” says Bank of Melbourne chief executive Scott Tanner.
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Bank of Melbourne cuts fixed rates and improves incentives for borrowers

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NSW Treasurer Mike Baird has defended the government’s timetable of changes to handouts available to first-home buyers, non-first-home buyers and investors announced in the state budget.
The changes initially grabbed favourable headlines due the size of first-home owner grants –up to $35,240 for those purchasing a new home – but the <a href="https://www.propertyobserver.com.au/residential/nsw-budgets-needlessly-complex-artificial-deadlines-have-short-term-and-long-term-consequences-for-residential-property/2012061455119" target="_blank">artificial deadlines</a> has since been heavily criticised for killing off the investor market and encouraging first-home buyers to wait until after October 1.
The program of changes, announced on June 12, gave investors (and non-first home buyers) just 18 days to complete off-the-plan purchases to take advantage of a a zero stamp duty option – and the potential saving of $22,490 through the NSW home builders' bonus, which ends on June 30.
For first-home buyers, the state government decided to scrap the $7,000 first-home owners’ grant entirely for established home purchases and replace it with a $15,000 grant for new homes – but only from October 1.
This means that many first-home buyers are likely to put off their new home purchases until after October 1, when there will be up to an additional $8,000 up for grabs.
The executive director of the Housing Industry Association, David Bare, expects the three-month lag would be felt in the construction market and could have a significant impact on the cash flow for builders.
Meriton boss Harry Triguboff says this three-month time frame will be “hopeless” for developers targeting the first home-buyers’ market.
But a spokesperson for NSW Treasurer Mike Baird told Property Observer the three-month notice period for first-home buyers “provides a reasonable timeframe for the market to adjust to the changes and is in line with the timeframe applied to stamp duty concession changes in last year’s budget”.
In the 2011-2012 NSW budget, delivered on September 6 last year, Baird gave first-home buyers just under four months’ notice that stamp duty concessions under the first home plus scheme would be limited to the purchase of newly constructed homes (including off-the-plan purchases) from January 1 this year under a new scheme, the first home – new home scheme.
The expired first home plus scheme meant borrowers did not have to pay any stamp duty for homes under $500,000 – a saving of up to $17,990.
The spokesperson for the Treasurer also said the home builders’ bonus had been due to expire on June 30.
“However from the July 1, the NSW government will introduce the new home grant of $5,000 which will go to all non-first-home buyers of new properties up to $600,000.”
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NSW Treasurer Mike Baird defends timing of changes to home buyer handouts

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."

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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."

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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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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.

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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.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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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.

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“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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