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Investing in property over the last two decades has delivered strong compared with shares and other asset classes, according to the latest Long Term Investing report from fund manager Russell Investments. The fund manager says taxation policies have been a key factor in the sector’s long-running attractiveness.
Over the past 10 years to December 2011 residential investment property has outperformed all other asset classes at the lowest and highest tax rate at 7.2% p.a. and 5.8% p.a. respectively.
Over the 20-year period, Australian shares returned 9% p.a. and 7% p.a. at both the lowest and highest marginal tax rates respectively, with residential investment property achieving the second highest return of 8.1% p.a. and 6.6% p.a. at the lowest and highest marginal tax rates respectively.
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Cash had the lowest returns under both tax regimes of all asset classes over 20 years.
Calculations by Russell Investments over the 20-year period show that the effective tax rate for top marginal tax payers is most favourable for Australian shares at 20%, with residential investment property at 26% and Australian REITs and 23%.
In comparison, the effective tax rate for overseas shares is 28%, it rises to 36% for global REITS and is at 49% for cash and bonds.
“The impact of personal taxation on residential investment property has also been less significant as a result of the tax deductibility of expenses relating to residential investment property,” says the Russell Investments report.
“All three asset classes (Australian shares, residential investment property and Australian REITS) also provide tax deferral benefits and qualify individual and superannuation investors for a capital gains tax discount on liquidation, which contributes to their after-tax attractiveness relative to bonds and cash,” the report continues.
Earlier this week, Prime Minister Julia Gillard ruled out removing generous tax break offered to property investors who negatively gear their investments over concerns it would “distort the market”.
Russell Investments does caution investors that residential property is no longer a risk free asset class or a sure bet for future growth.
“The investment fundamentals of residential property are becoming less attractive compared to listed shares,” says Greg Liddell, Russell’s director of consulting and advisory services. 
“The main risks for residential property relate to relatively high valuations and the prospect of further deleveraging by Australian households.
“Low rental yields will make it difficult for residential property to outperform listed shares as an investment over the next decade,” he says.
At the Prime Minister’s Economic Forum in Brisbane yesterday, Westpac boss Gail Kelly said compound growth in house prices were over for good and Australia would not see another housing boom.
Share board image courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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lschlesinger-FZcF9M3vE6

Residential property investment outperformed all other asset classes for past 10 years: Russell Investments 

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NSW property investors should not rush to exchange off-the-plan properties ahead of the June 30 end to state stamp duty concessions unless they have completed all the necessary research and due diligence, according to research and investment firm the Aviate Group. 
From July 1 investors buying off the plan will only get a $5,000 handout from the government instead of saving up to $22,490 under the zero stamp duty option under the soon-to-end NSW home builders' bonus, <a href="https://www.propertyobserver.com.au/landlords/nsw-property-investors-condundrum-take-the-%2422490-housing-bonus-now-or-just-%245000-after-july-1/2012061255081" target="_blank">creating a conundrum</a> about whether to buy now or wait in the expectation of unit property market having staggered growth over the next few years. 
They are likely to be encouraged by some developers to complete their purchases over the next two weeks and take the bigger incentive. 
Meriton boss Harry Triguboff says he will be going “hell-for-leather” to sell to investors before July 1 “because they’ll still get something”. 
Developers have the added impetus of getting as many investors over the line before July 1, as the first-home buyers’ market is also expected to retreat for three months between July 1 and October 1, until the double $15,000 first-home owners’ grant for a new property purchases kicks in. 
But Aviate Group managing director Neil Smoli says property investors should never make a rushed decision to purchase an investment property, no matter how tempting the incentive. 
An investment property, he says, is a long-term prospect, “and the right property will always deliver long term growth”. 
“If an investor has undertaken all the necessary research and due diligence on an investment property that falls within the concession price bracket, they should by all means proceed with a purchase before the end of the financial year and pocket the stamp duty saving,” Smoli says. 
“However, it is never a good idea to make an investment decision based purely on an incentive. If a property does not have the potential to deliver reliable returns and capital growth opportunities over the long term, no government incentive at the time of purchase will change this fact.” 
According to Smoli, a rushed decision before July 1 may jeopardise an investor’s security down the track. 
“The short-term benefit of an incentive will pass relatively quickly, but the shortcomings of an ill-informed investment property purchase may have a lasting negative impact. 
“At the end of the day, an investor must analyse their capacity to meet repayments, considering the complete range of factors such as the likely rental, cost of different insurance requirements and strata fees, to name a few. An investment decision influenced solely by a government incentive is perhaps a sign that the investor is not ready to invest.” 
“While growth in property prices may be subdued at present, astute investors still recognise that good properties with the right attributes still have the potential to outperform other investment alternatives,” Smoli says. 
“It’s important to recognise that price growth statistics, even when confined to individual suburbs, can be misleading. Each development – indeed each apartment within each development – has variables that determine its capacity to perform as a quality investment over the long term. Some developments merely streets apart can have entirely different capital growth outlooks, depending on the investment criteria applied.” 
Aviate is also calling for stamp duty to be abolished, calling it “an unnecessary burden for buyers”.
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Property investors should not rush NSW purchases ‘purely for the incentive’: Aviate

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Damian Smith, a regular commentator on mortgage trends, has resigned as CEO of financial comparison website RateCity.com.au after three years at the helm.

He will remain at RateCity.com.au. until the end of the month before taking up a new opportunity at Telstra’s Application Venture Group (AVG) with the aim of developing an offering in the consumer health space.


Andrew Willink, founder of RateCity.com.au.and chairman and founder of the Canstar group of companies, will take over from Smith as interim CEO while a replacement is recruited.
Michelle Hutchinson, RateCity.com.au’s public relations manager and consumer advocate, has taken over as spokesperson for the website.


“I am leaving RateCity with a heavy heart,” Smith tells Property Observer.


“I have loved my time here.”


Since his appointment as CEO in 2009, Smith has been the spokesperson for the website and a regular media commentator on mortgage trends and interest rates.


RateCity.com.au was set up in 2006 as a free financial comparison service for consumers. It earns money by generating qualified leads for financial institutions.
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RateCity.com.au to lose CEO Damian Smith to Telstra venture capital opportunity

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The sale of Australian CBD hotels to offshore interests continues, with a Malaysian investment trust paying $415 million for a portfolio of three five-star Marriott hotels.
The Sydney Harbour Marriott, the Brisbane Marriott and the Melbourne Marriott have been bought by Malaysia-listed Starhill Real Estate Investment Trust, managed by Malaysian conglomerate YTL Corp.
Asian buyers have accounted for 93% of all hotel sales this year.
The Marriott properties formed part of Colonial First State’s (CFS) Commonwealth Property Hotel Fund, which is being wound-up.
The sale was negotiated by Mark Durran and Craig Collins of Jones Lang LaSalle Hotels, who says the federal government’s changes to withholding tax on management investment trusts “caused some friction” but did not prevent the deal from going ahead.
The three hotels were acquired by CFS between June 2000 and April 2001.
The jewel in the crown is the 550-room Sydney Harbour Marriott at the northern end of Pitt Street, which was constructed in 1989 and underwent a $35.5 million refurbishment during the 2002-2003 financial year.
The Brisbane Marriott is a 267-room hotel constructed in 1998, and the Melbourne Marriott is a 185-room hotel constructed in 1982. It underwent an $8 million refurbishment in 2002.
Prior to the acquisitions Starhill had a market capitalisation of around RM1,025 million ($324 million as of June 2010) comprising  the JW Marriott Hotel Kuala Lumpur and 60 units of serviced apartments, four levels of commercial podium and two levels of car parks located within The Residences at The Ritz-Carlton, Kuala Lumpur.
The Australian acquisitions will bring its portfolio to around $1 billion.
The five-star hotel sale attracted significant interest from offshore investors and takes total hotel sales to $614 million for the first six months of the year, with  Jones Lang LaSalle estimating that this could double by the end of the year.
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Malaysian REIT pays $415 million for Marriott five-star hotel portfolio

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McGrath Mid North Shore agent Peter Chauncy has ranked as Australia’s top estate agent, according to a new Top 100 survey by industry magazine Real Estate Business.
Chauncy, who sells property in Chatswood, Crows Nest, Lane Cove and Naremburn, racked up 79 property sales over the 2011 calendar year worth $88 million.
The rankings were compiled based on a range of criteria including sales volumes, sales numbers and average sale prices.
Chauncy admits to being a workaholic who works 75 hours each week, but says he loves it.
“I really am passionate, and that enthusiasm and passion really rubs off on people, and I think that’s been a key part to our success,” he says.
Chauncey will become principal at the new McGrath Crows Nest office when it opens in August this year.
His most recent sale was a 1,094-square-metre site on Talus Street in Naremburn, which he sold alongside David Howe for $2.655 million. The site has approval for an eight-apartment complex.
Another McGrath agent, Wayne Vaughan from the Epping office, ranked fifth on the list, with sales of $73 million. Four McGrath agents made it into the top 10, and 10 were among the top 100.
Ray White dominated the list, with 17 out of the top 100 spots.
Edward Hobbs from Biggin &amp; Scott Richmond ranked second ($81 million in sales) followed by Ric Serrao from Raine &amp; Horne Double Bay ($74 million) and Glen Coutinho from hockingstuart Hawthorn ($85 million)
In dollar terms, Jason Boon from Richardson &amp; Wrench Elizabeth Bay/Potts Point ranked first, with $130 million worth of sales from just 55 transactions.
Jay Standley from Barr and Standley Real Estate Bunbury, WA, managed the highest number of sales at 189 (or more than one sale every two days) to rank 53rd overall.
The top female agent was Karen Vogl from hockingstuart Ringwood in Melbourne’s eastern suburbs, who clocked up $80 million in sales and ranked 11th overall.
Nearly half (47) of the top 100 were NSW agents. There were 17 each from Victoria and Queensland and 14 frm WA.
The top 100 was based on agency submissions and received over 400 submissions, according to Alex Whitlock, publisher of Real Estate Business.
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McGrath Mid North Shore agent Peter Chauncy named Australia’s top estate agent by Real Estate Business

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Melbourne’s urban growth boundary will extend outwards over the next 20 years to incorporate six new fringe suburbs and provide new homes for up to 100,000 people.
The plans, unveiled by Victorian Planning Minister Matthew Guy, includes the development of six new metropolitan suburbs at Diggers Rest, Lockerbie, Lockerbie North, Manor Lakes, Merrifield West and Rockbank North and follow the completion of the Logical Inclusions Review of Melbourne’s Urban Growth Boundary (UGB).
The new suburbs will expand Melbourne’s urban boundary to the North (Mitchell and Whittlesea), to the West (Hume, Melton and Wyndham) and South East (Cardinia and Casey) by 6,000 hectares.
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The 6,000-hectare expansion is significantly less than the 43,000-hectare expansion planned under by the previous Victorian government.
Plans for the new suburbs include the building of new train station, town centres, open space and other key infrastructure
Over the next 20 years there will be
<ul>
<li>3,800 homes developed for 10,700 residents in Diggers Rest in Melton as well as local town centre located, the extension of Houdini Drive, a multi-purpose community centre and additional sportsgrounds.</li>
<li>10,500 new homes for 29,500 new residents in Lockerbie (incorporating parts of Hume, Mitchell and Whittlesea) as well as a new train station, a new north-south arterial road, three state primary schools and a secondary school, four new sports reserves and a new principal town centre next to the future train station.</li>
<li>4,600 new homes for 13,000 new residents in Lockerbie North (incorporating parts of Mitchell and Whittlesea)  along with a new train station, a new north-south arterial road, two state primary schools and a secondary school, two new sports reserves, a transit oriented town centre next to the future train station.</li>
<li>4,850 new homes for 13,500 new residents in Manor Lakes (in Wyndham) along with two state primary schools, two large new recreation reserves, a local town centre and an important new north-south arterial road.</li>
<li>7,000 new homes for 20,000 in Merrifield West (in Hume) along with the development of two state primary schools, football and soccer grounds, two local town centres and a number of local parks</li>
<li>6,650 new homes for 18,500 new resident in Rockbank (in Melton) over a longer 25 year time frame) along with the development of two state primary schools, a secondary school, three active recreation reserves, two local community facilities, higher order civic uses, passive recreation and linear trail network, a major and local town centre and an important east-west arterial road. </li>
</ul>
 
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Merrifield West residents travelling into the city will have to rely on the Donnybrook V/Line rail station or drive seven kilometres to the Craigieburn rail station, while Rockbank North and Lockerbie residents will need to use already busy V/Line rail stations until the new train station proposed for Beveridge is completed. 
There will be an expansion of the Diggers Rest V/Line rail station.
Guy says the urban expansion plan will provide opportunities for Melbourne’s economic and social future.
“Housing, employment, infrastructure and all the other elements that make up our community need to be planned and implemented carefully,” he says
“The completion of this review will lead to urban growth boundary modifications to ensure adequate long-term land supply and enable planning for population growth to be completed well ahead of time.”
Many of these new outer suburbs are already the focus of new housing developments, with the March quarter Oliver Hume residential communities report noting that 10 new communities comprising a total of 3,400 lots launched over the first three months of the year.
Four of the 10 projects were located in Wyndham, three in Melton, two in Whittlesea and one in Hume.
The report says it would take 6.8 months to sell the current level of supply represents 6.8, exceeding the industry benchmark of six months for the first time since the September quarter of 2006.
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All municipalities experienced a rise in supply with 20 months’ worth of supply in Mitchell (Wallan-Beveridge) and also double-digit level of supply in Melton. The City of Hume is now the tightest market, with only 4.2 months of supply. 
The report also notes declining land prices with average lot prices having fallen $16,000 to a median of $210,000 from their peak of $225,750 in the December quarter of 2010, a fall of 7.5% over the 15 months.
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Melbourne urban sprawl to extend into six new suburbs over next 20 years

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Sydney’s low rental vacancy rate continues to insulate the residential property market against wider economic forces, according to the latest CBRE review of the NSW residential market. 
The report quotes Residex figures showing that Sydney house prices are down 0.4% over the past 12 months to March to a median of $667,500 – a strong result relative to Melbourne (6.2% decline to March) and Brisbane (down 4.3%). 
It also notes RP Data-Rismark figures showing a 1.2% gain in Sydney house prices for the March quarter to a median of $572,000. 
CBRE assesses the Sydney’s housing market as being “reasonably positioned in relation to the remainder of the Australian market”. 
In line with a similar trend in Perth, the picture is brightest for affordable properties priced under $500,000, which continue to attract most demand, with prestige homes remaining under pressure. 
CBRE associate director of global research  consulting Sam Reilly says this stability is linked to low vacancy rates, “which continue to underpin the market”. 
“This [low vacancy rate] has somewhat insulated Sydney from the significant declines in capital values that have been witnessed recently in other states,” he says. 
Sydney’s vacancy rate remained unchanged at a very low 1.6% in March quarter figures released by the Real Estate Institute of Australia (REIA) – the lowest of all capital city market, with Brisbane at 1.7%, Perth at 1.9% and Melbourne and 2.3%.
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REIA says that a vacancy rates lower than 3% indicate strong demand for rental accommodation. 
House rents rose by 6.9% and unit rents by 8.9% over the year to March 2012 according to CBRE, with weekly rents for houses and units sitting at $545 and $490 respectively as at March this year. 
The CBRE report also notes that sales volumes for Sydney houses have shown signs of a recovery, with a moderate increase of 3.2% over the year to March 2012 to 42,118. 
There were 40,452 units sold during the same period, representing an increase of 6.2% on the previous year, meaning that annualised house sales surpassed more affordable unit sales for the first time since the end of 2009.
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This occurred at a time when the NSW government offered an additional $7,000 for first-home buyers as part of its first-home owner boost scheme, which ran from October 2008 to December 2009. 
CBRE senior director for NSW residential mortgage valuations Ted Hoskin says although the house and unit markets remain under pricing pressure, recent results pointed to a moderate recovery for the state. 
“With increased sales volumes for both property types, it appears that although not yet supporting a longer term recovery, the sustained down trend in market activity appears to have stopped and a greater degree of stability is now being recorded,” he says. 
Buy activity and demand differs from region to region: 
Eastern suburbs 
 
Though buyer activity has dropped since the end of the first-home owners’ stamp duty exemption, properties in the eastern suburbs priced around $500,000 continue to experience strong levels of demand. 
“For both houses and units between $500,000 and $1 million there has been a slight decrease in buyer demand, with agents reporting conditions have decreased from mid-2011,” he says. 
Sydney CBD 
The Sydney CBD market experienced solid demand for units priced below $500,000 although units up to $1 million faced weaker conditions. 
Sydney’s north-west and western suburbs 
Prices remain relatively stable across the quarter, with steady demand particularly evident in the lower to mid-market ($400,000 to $650,000). 
CBRE says property priced up to $1 million is experiencing consistent levels of buyer enquiry, which is a positive sign. 
The south-west market, including growth centres around the Macarthur area, has slowed for lower-priced properties ($280,000 to $400,000), with reduced buyer demand and contracting sales volumes. 
The south-west middle market between $400,000 and $500,000 has attracted steady levels of demand. 
South Sydney 
Prestige properties in Sydney’s south fared best in the quarter, with steady demand for well-presented properties in good positions between $1 million to $2 million. 
Wollongong and Illawarra 
Wollongong and Illawarra had the strongest $500,000 price bracket for all NSW dwellings in 2012 to date, while pressure was evident in the same bracket in Sydney’s southern suburbs, including the Sutherland shire, after strong growth at the end of 2011.
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Low rental vacancy rate ‘insulating’ Sydney residential property market against economic woes: CBRE

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Westpac has used the RBA cash rate cuts of May and June to position Bank of Melbourne as its budget bank brand among its multi-brand offering while reeling in the discounts offered by its mortgage franchise RAMS.
Before the RBA began cutting the cash rate in November, St George, BankSA and Bank of Melbourne all offered a benchmark standard variable rate of 7.8%, with Westpac’s six basis points higher at 7.86%
RAMS was significantly cheaper with a rate of 7.63%, a 23-basis-point difference.
Fast-forward eight months and Westpac still has the highest standard variable mortgage rate at 6.89%, but Bank of Melbourne is now the lowest of the budget bank brands, with a standard variable mortgage rate of 6.8%, followed by BankSA (6.85%) and St George (6.86%)
RAMS maintains its position as having the lowest standard variable rate of the Westpac brands at 6.75% but is now only five basis points lower than Bank of Melbourne – thanks mainly to RAMS not passing on any of the December RBA cash rate cut – and only 14 basis points lower than Westpac.
Rate changes for Westpac brands following start of RBA cash rate cutting cycle in November 2011
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="102" valign="top">
Brand
</td>
<td width="78" valign="top">
SVR June
</td>
<td width="78" valign="top">
 SVR May
</td>
<td width="73" valign="top">
SVR Feb 
</td>
<td width="77" valign="top">
SVR Dec 2011
</td>
<td width="77" valign="top">
SVR Nov 2011
</td>
<td width="60" valign="top">
SVR Oct 2011
</td>
<td width="71" valign="top">
Total change since Nov
</td>
</tr>
<tr>
<td width="102" valign="top">
Westpac
</td>
<td width="78" valign="top">
6.89% (- 20 bps)
</td>
<td width="78" valign="top">
7.09% (- 37 bps)
</td>
<td width="73" valign="top">
7.46% (+10 bps)
</td>
<td width="77" valign="top">
7.36% (-25 bps)
</td>
<td width="77" valign="top">
7.61% (-25 bps)
</td>
<td width="60" valign="top">
7.86%
</td>
<td width="71" valign="top">
-97 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
St.George
</td>
<td width="78" valign="top">
6.86% (-18 bps)
</td>
<td width="78" valign="top">
7.04% (-38)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 94 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
BankSA
</td>
<td width="78" valign="top">
6.85% (-19 bps)
</td>
<td width="78" valign="top">
7.04% (- 38 bps)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 95 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
Bank of Melbourne
</td>
<td width="78" valign="top">
6.80% (-19 bps)
</td>
<td width="78" valign="top">
6.99% (-41 bps)
</td>
<td width="73" valign="top">
7.40% (+10 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
-100 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
RAMS
</td>
<td width="78" valign="top">
6.75%  (-21 bps)
</td>
<td width="78" valign="top">
6.96% (-32 bps)
</td>
<td width="73" valign="top">
7.28% (+10 bps)
</td>
<td width="77" valign="top">
7.38% (0)
</td>
<td width="77" valign="top">
7.38% (-25 bps)
</td>
<td width="60" valign="top">
7.63%
</td>
<td width="71" valign="top">
- 88 bps
</td>
</tr>
</tbody></table>
 Bank of Melbourne is also trying to convince borrowers that it is a separate entity to its big four parent, with the ads in its windows talking about it matching the big four on price while beating them on service.
“Not a bad bit of spin for a bank wholly owned by the country's second-biggest major. It's a question of whether customers will buy it,” wrote Stewart Oldfield, an analyst at Investorfirst Securities, in the Fairfax press.
Oldfield says Westpac’s multi-brand strategy in Victoria is about trying win new customers by offering them a “regional bank” experience in a state where regional bank representation is low compared with the national average.
“Privately, the bank also highlights the ability to price brands differently, depending on market conditions,” he says.
What is also noticeable is that the range of standard variable rates offered across the five brands has shrunk from 23 basis points in November to just 14 basis points in June, providing less of an incentive for borrowers to refinance from one Westpac mortgage brand to another.
Westpac kicked off its multi-brand mortgage strategy –likened to that of consumer products giant Unilever – following the outbreak of the GFC.
It acquired the RAMS brand name and franchised stores for just $140 million in January 2008 following the disastrous float of the then non-bank lender.
One month later Gail Kelly left her role as St George chief executive to assume the position of Westpac CEO.
Twelve months later Westpac bought St George for $18.6 billion.
Westpac relaunched the Bank of Melbourne brand in August last year, replacing St George in the Victorian market.
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Westpac uses rate cuts to push Bank of Melbourne challenge to RAMS discount brand

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Australian housing prices are unlikely to rise in winter despite an increase in buyer enquiries, says McGrath Estate Agents chief executive John McGrath, who is forecasting a “long and slowish recovery” over the next three to five years.
In his latest winter market review, McGrath, notes that in March, “the country’s largest mortgage broker, AFG, had its second biggest month ever in NSW since their index commenced in 2004 with $842 million in new lodgements”.
“While this clearly indicates more buyers are out there, they remain very price sensitive,” he writes.
“Reserve Bank interest rate cuts will no longer have the effect we’re used to given the banks’ reluctance to pass on the full amount. The official cash rate is now at its lowest since November 2009, when the economy was recovering from the initial impact of the GFC.
“While this might result in more sales activity in winter, it won’t push prices higher because buyers are still worried about Europe and are wary of protecting themselves financially as we enter a new era of aversion to debt,” he says.
Overall though, McGrath says Australia’s housing markets are not in a bad state, “but people continue to wait for positive signs”.
“This has been a protracted and agonising period of uncertainty. The constant flow of good and bad news both at home and overseas continues to undermine confidence.
“Once we see some positive and sustained economic change overseas, I believe our property market will begin a long and slowish recovery over a three to five year timeframe,” he says.
McGrath’s bearish outlook on prices is unchanged since December, when he noted a “marked improvement in buyer enthusiasm” but said that people were “looking for more good news to regain their confidence to buy and sell”.
Similarly in March, McGrath said there would be no significant price “increases until the Europe is resolved and we see further signs of recovery in the US”.
His observations echo those of <a href="https://www.propertyobserver.com.au/trends/time-to-buy-a-dwelling-sentiment-improves-but-unlikely-to-flow-through-to-purchases-westpacs-bill-evans/2012061355096" target="_blank">Westpac chief economist Bill Evans</a> following the 7.5% increase in the ‘time to buy a dwelling” Westpac-Melbourne Institute consumer sentiment sub-index.
Evans said “buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security”.
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‘Long, slowish recovery’ on the cards Australian property market despite rise in buyer enquiries: John McGrath

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Two successive rate cuts helped lift consumer sentiment about buying a house or unit in June but have had little impact on overall consumer sentiment, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment. 
Responses to questions on “time to buy a dwelling” and “time to buy a car” both showed an improvement in June, with these indexes rising 8.2% and 7.5% respectively. 
The “time to buy a dwelling” index now stands at 128, compared with 118.2 in May and 115.4 in June last year, well above the historical average of 122.3. 
The overall index increased by just 0.3% from 95.3 in May to 95.6 in June and is well down on the 101.2 level recorded a year ago and the historical average of 101.7. 
The latest survey of 1,200 adults over 18 was conducted in the week from June 4 to June 10. The RBA cut the cash rate by 25 basis points to 3.5% on June 6.
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“Lower interest rates and lower prices are clearly improving affordability and buyer sentiment on both fronts although buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security,” says Westpac chief economist Bill Evans. 
Commenting on the overall consumer index, Evans says “clearly other factors are dominating rates in the minds of consumers – those factors are concerns about the domestic economy and international conditions”. 
Evans says the June survey included additional questions on “news” categories recalled and whether news was assessed to be favourable or unfavourable. 
“The results show negative news around the economy and international conditions dominated.” 
“This is another disappointing result. It follows a second consecutive cut in the official cash rate by the Reserve Bank.” 
“Sentiment has risen only 1.1% from its April level and remains 1.7% below the level recorded in October last year despite a 125-basis-point reduction in the cash rate that has brought the average standard variable mortgage rate down by nearly 1%,” says Evans.
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'Time to buy a dwelling' sentiment improves but unlikely to flow through to purchases:  Westpac’s Bill Evans

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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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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