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Novotel Melbourne St Kilda – Melbourne’s premier beachside hotel – has been listed for sale by Tourism Asset Holdings Limited (TAHL) with market observers expecting a price between $55 million and $60 million.
It last sold in 2008 and before that changed hands for $21 million in 1992 in the aftermath of the early 1990s recession.
An international marketing campaign will kick off next week led by Wayne Bunz and Mark Wizel of CBRE Hotels, with expressions of interest closing on July 26 – unless sold prior. 
The recently refurbished hotel includes 211 rooms over six levels on a 5,791-square-metre site boasting 270-degree views of Port Phillip Bay. 
The Novotel Melbourne St Kilda is operated by Accor, the world’s biggest hotel and tourism group. 
The management agreement with Accor has a further nine years to run, when vacant possession of the hotel will be available, “offering a myriad of future redevelopment options,” according to CBRE. 
The hotel is zoned residential 1 under the City of Port Phillip. 
The hotel originally opened in 1991 as the St Moritz hotel, which became the Novotel Bayside in 1993 when Accor acquired the management rights and then Novotel St Kilda in 1999.
It was originally developed by Michael Lasky and Izzy Hertzog. 
Lasky founded property development group Lascorp, focused on retail developments. 
Izzy Hertzog, a Holocaust survivor who came to Australia in 1949, made his fortune in wholesale car sales before moving into property development. He died in 2010.
The hotel was acquired by C. K. Fu's Hong Kong-based manufacturing company in 1992 for $21 million after being placed in receivership in 1991. The hotel was sold by the State Bank of South Australia as mortgagee.
The hotel stands on the site of the St Moritz ice rink, which operated from 1939 to 1981, attracting more than 2000 people to its 1,850 square metres of ice. 
The ice rink was destroyed by a fire in 1984. 
The first building on the site was the Wattle Path Dance Saloon and Café, which opened in 1923. 
In 1933 the property was acquired by theatrical entrepreneur F.W. Thring, who transformed the building into one of the largest film studios in Australia under the name Efftee Productions. 
The studio only lasted a couple of years, closing in the late 1930s. 
Bunz tells Property Observer the hotel will be marketed to the majority of the Asian market, with strong interest expected from this market. 
He says it will be “keenly sought after by traditional and non-traditional, national and international investors”.
“In the current market, buyers are looking for unique assets that will allow value-add opportunities.  The Novotel St Kilda presents just such an opportunity by combining a strong income-producing hotel that will generate a healthy return on equity, with significant vacant possession opportunities including the potential to redevelop the site in the future.
“In the past 18 months there have been a number of significant hotel asset transactions, with a strong surge in the appetite of private and offshore investors, particularly Asian-based groups,” Bunz says.
“It stands on a substantial land holding in St Kilda,” Bunz tells Property Observer. 
Prior to the formal sales listing, TAHL chief executive Matthew Eady said there had been “significant unsolicited interest in the property, given its premier location, strong ongoing cashflow and attractive alternate use as a residential development”. 
“Given the strength of investor and developer interest, we have decided to consolidate that into a formal sales campaign,” he says.
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Asian buyer interest expected for Novotel St Kilda, with price expectations around $55 million

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There was a 13% increase in the volume of Perth residential sales in the March quarter, with first-home buyers and investors returning to the market, according to CBRE’s first-quarter WA market view report. The firm says a recovery could be under way. 
CBRE recorded 5,663 sales in the Perth metropolitan area over the first three months of the year, compared with the 5,268 in the previous quarter and a “noticeable contrast to conditions in the prior 12 to18 months, when sentiment was low”, according the firm’s associate director of global research and consulting Sam Reilly. 
Total house sales over the 12 months to March reached 22,676, a slight decline from the 23,032 over the previous 12 months. 
Perth house sales peaked in early 2004, with just over 40,000 sales recorded. The market reached just under that peak in March 2006 and traded strongly until early 2007, when the ill winds from the GFC first began to be felt. 
Perth’s inner-city apartment market has been particularly strong, buoyed by the resources sector through the second quarter, with both owner-occupier and investor demand on the rise. 
Unit sales rose from 1,191 in the December quarter to 1,852 in the March quarter, with CBRE recording 6,654 unit sales over the year to March. The unit market last peaked around March 2006 with just under 10,000 annual sales. 
“Perth’s inner-city unit market has experienced notable change recently, with oversupply now correcting as take up is being driven by the resource sectors, a trend that clearly highlights the tangible impact resource growth is having on Perth at present,“ says CBRE director of valuation and advisory services Michael Veletta.
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Perth house prices increased by 3.9% over the quarter to a median of $487,500, though they are up only 0.5% over the past 12 months, according to Residex data.
The RP Data-Rismark Daily index has Perth home values up 0.76% for quarterly growth to June but still down 1.78% year-on-year. 
Reilly says it is too early to point to a full market recovery, but the increases in sales volumes suggested renewed interest from buyers following the price corrections that had substantially reduced capital values across all sectors of the market. 
The increase in activity has been attributed to the flow-on effect from oil, gas and iron ore industries in the state, which CBRE says “continues to underpin the market due to high infrastructure spending and increased employment opportunities”.
Deloitte Access Economics is forecasting the WA economy to grow by 4.2% annually between 2012 and 2017. 
However, Reilly warns that while the resources boom provides Western Australia with a strong advantage in terms of economic growth, the risk of a slowdown to commodities markets remained. 
“If that were to occur in a substantial manner, the residential market would immediately come under pressure,” he says. 
The report notes recent REIA data showing Perth vacancies trending down in the December quarter to 2.3%, compared with 2.8% in the September quarter, with population growth creating increasing demand for rental accommodation.
 
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Looking ahead towards the second quarter, CBRE notes that the more affordable sub-$500,000 house market in Perth has fared the best as first-home buyers targeted affordable housing stock following some easing in interest rates. 
First-home buyers have faced competition in this price bracket from investors. 
Veletta says investors are focused on the fact that rentals are beginning to reach parity with debt servicing levels. 
“Price declines have obviously assisted to increase demand levels, but the high levels of rental growth have been equally important to stimulate this area of the market,” he says. 
The latest REIA/Deposit Power report records a 4.1% increase in the number of loans to first-home buyers from 3,757 in the December quarter to 3,910 in the March quarter. 
First-home buyers were attracted back to the market despite housing affordability worsening in the state of the March quarter, with the proportion of family income needed to make mortgage repayments increasing by 22.9% to 24.1% over this period. 
Rent payments as a proportion of family income increased by 0.7% to 20.8% of family income. 
Further up the price spectrum, the $500,000 to $1 million bracket remained soft and is expected to stay relatively subdued until improved levels of buyer interest in the first-home buyer market begin to flow on. 
“As owner-occupiers that currently own houses in the sub-$500,000 bracket begin to trade up, the middle range markets should see demand levels improve. This is a gradual process, however, and impacts on capital growth will take some time,” says Veletta. 
Outside of Perth, a recovery appears unlikely, with regional areas such as the Peel region continue to experience oversupply. 
“Mandurah continues to chug along with no great signs of recovery, limited demand, small buyer pool and growth in employment concerns,” Veletta says. 
Activity levels also remain low in WA’s land sales market, with developers offering a range of incentives to boost demand levels. Established stock is slowly being taken up, with slight increases in building approvals recorded.
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Perth residential market poised for recovery, buoyed by mining boom: CBRE

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Cheaper mortgage rates across the Tasman have helped New Zealand house prices recover over the past 12 months to levels last seen around the time of the GFC.

The benchmark Real Estate Institute of New Zealand (REINZ) Housing Price Index rose 1.7% in May to be 6.4% up on the same time last year – 0.3% higher than the previous peak recorded in November 2007.

During this period house prices have increased by 5.4% to a median of NZ$369,000 (A$287,000).

In Australia, house prices were down 4.74% across the five major capital cities, according to RP Data- Rismark.

Mortgage rates are noticeably cheaper across the ditch, with the Reserve Bank of New Zealand offering a cash lending rate of just 2.5%, unchanged since March 2011 – 100 basis points lower than the RBA’s June cash rate of 3.5%.

Westpac New Zealand is offering a standard variable rate of 6.24%, compared with the 6.89% it is offering in Australia, according to www.interest.co.nz.

ANZ offers a “simple” variable mortgage of 5.74%, compared with the 6.8% standard variable rate it is offering in Australia.

ASB, the Commonwealth Bank’s New Zealand brand, has a standard variable rate of 5.75%, compared to the 6.8% offered in Australia.

According to the REINZ there were 7,175 sales in May, a 24.4% rise on the same month last year.

Jane Turner, economist at ASB, says the low interest rates are “stoking demand” and helping drive a trend of “gradual improvement” in the housing market.

The total value of residential sales was NZ$3.30 billion in May, compared with NZ$2.57 billion in April and NZ$2.46 billion in May 2011. 

The Auckland market, New Zealand’s biggest housing market, has performed particularly well of late, with house price index up 3.7% from a July 2007 high in May 2012.

Auckland recorded 2,792 sales over May, a 28% rise on the same time last year, with the median sale price rising 7.8% over this time to a record NZ$500,000 (A$389,000).

Auckland’s largest real estate agency, Barfoot and Thompson, posted its busiest May in seven years, recording 1,165 sales during the month – up 31% from May 2011 – with sales prices rising 2.5% over the month to $582,285.

Managing director Peter Thompson attributes the jump in sales to significant number of new listings, “keenly priced mortgage lending rates, fine weather and a larger pool of potential buyers”.

Barfoot and Thompson listed 1,421 properties during May, up 12.2% from April.

REINZ chief executive Helen O'Sullivan says sales volumes have been surprisingly strong in May, with all regions recording increases in sales over April and over May last year.

O’Sullivan says May is typically stronger than April but the May 2012 increase was “considerably stronger than normal seasonal trends would suggest”.
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Lower mortgage rates drive up NZ median house prices 5.4% for year to May: REINZ

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Negative gearing tax breaks for property investors will not be removed, says Prime Minister Julia Gillard. Gillard says her government has ruled out removing the tax break.
It was in response to a question asked on the ABC’s Q&amp;A program.
“We didn’t agree with the Henry Tax Review,” Gillard said.
“We think that an abolition of negative gearing will cause distortions to the property market that we did not want to see,” she said.
The federal opposition also appears loath to remove the tax break, with Coalition spokesman Joe Hockey tweeting after the broadcast that negative gearing “holds down rents... just ask Bob Hawke and Paul Keating. They tried to get rid of it and reversed their policy.”
However Sarah Toohey, spokesperson for lobbying group Australians for Affordable Housing, disagreed with Hockey, tweeting that “rents only rose in Sydney and Perth when Keating changed [negative gearing].
“[Rent rises] have been nationwide if that [were true],” she tweeted.
Property buyers’ advocate Catherine Cashmore agreed with Toohey, tweeting that negative gearing needed to be phased out.
“No other country has such a generous gearing policy – it does nothing to ease housing affordability,” she tweeted.
Negative gearing was used by around 2 million property investors in the last financial year to reduce their tax bill, according to ATO figures.
A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and capital depreciation – exceed the rental income it produces.
The Henry Tax Review called for a raft of investment tax breaks – including negative gearing – to be replaced with a 40% discount on the marginal tax rate.
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Julia Gillard rules out scrapping negative gearing tax provisions for property investors

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Unicredit WA Mutual Bank, which passed on all 25 basis points from the RBA’s cash rate cut to borrowers, is offering one of the lowest standard variable mortgage rates at 5.85%.
The tiny lender, born out of the Chemistry Department at the University of Western Australia in 1964, has a standard variable rate that is 94 basis points below that of the average of the big four banks.

NAB was the last of the major banks to cut its variable mortgage, <a href="https://www.propertyobserver.com.au/residential/nab-stays-cheapest-but-only-passes-on-21bps-rate-cut-to-borrowers/2012060855049" target="_blank">reducing its benchmark variable rate product by 21 basis points just before 6pm as the Queen’s birthday long weekend began on Friday</a>.

This allowed NAB to keep its promise – just - of having the lowest standard variable rate of the big four banks – with a new rate of 6.78% from next Monday.

The standard variable rate gap between Westpac and the next cheapest – ANZ and the Commonwealth Bank – has widened.
The 19 basis points cut by the Bank of Melbourne (BoM) pipped rival Westpac brand NSW-based St.George's 18 basis point rate cut.
This took BoM's SVR down to 6.80% compared to St.George's 6.86%, with the bank far more ebulient in its media statement.
“With our new standard variable rate and market?leading fixed rate offers, together with the great life of loan discounts available under our Advantage Package, Bank of Melbourne is providing Victorians with some of the best home loan deals available,” said BoM chief executive, Scott Tanner. “It’s a great time forcustomers ? new or existing ? to speak to us to ensure that they are on the right home loan for them and maximising all of the benefits available.”
"This is good news for our customers," said St George Bank's general manager of retail banking Andy Fell in a statement.
Here’s a guide to the new standard variable rates of the major banks as well as some of the lowest standard variable rate offerings.

All rates correct as of 2pm, June 13.
5.85%

The new standard variable home loan rate of Unicredit WA Mutual Bank

6.02%

The standard variable home loan rate being offered by State Custodians Mortgage Company

6.22%

The new standard variable home loan rate of ING Direct’s Mortgage Simplifier variable home loan from June 15

6.28%

The new standard variable home loan rate of ME Bank
6.40%

The new standard variable home loan rate of Greater Building Society from June 15
6.75%

The new standard variable home loan rate of RAMS from June 15
6.78%


The new standard variable home loan rate of NAB and BankWest from June 18
6.80%

The new standard rate of ANZ (June 12), the Commonwealth bank (June 18) and Bank of Melbourne (June 18)
6.85%

The new standard variable home loan rate of BankSA from June 18.
6.86%
The new standard variable home loan rate of St George from June 18.

6.89%

The new standard variable home loan rate of Westpac from June 18 

6.90%

The new standard variable home loan rate of Bendigo Bank from June 25 

6.91%

The new standard variable home loan rate of Bank of Queensland from June 16
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From St George’s 18-basis-point cut to ANZ’s 25 bps: a guide to standard variable mortgage rates

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There are three architecturally designed townhouses left to purchase in Silvan, an eight-townhouse development that forms part of Scarlet Croydon, a master-planned community in the east of Melbourne.
Prices for the remaining townhouses range from $399,000 to $515,000, all under the $600,000 threshold for the <a href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863" target="_blank">Victorian government’s $13,000 first-home bonus</a>, which ends on June 30.
The townhouses are set against a backdrop of the Dandenong Ranges surrounded by wetlands, a children’s playground, a rotunda and barbecue facilities.
<img src="/images/stories/2012/06/silvan.jpg">
The homes are being sold with everything from fencing to driveways – even the letterboxes are included.
Scarlet Croydon offers expansive open spaces of established trees, parklands, wetlands and meandering walking trails, with all the comforts of enviable contemporary living.
The project is being marketed by the Oliver Hume Real Estate Group.
“The appeal of affordable and beautifully finished townhouses for first-home buyers and those looking to downsize is enormous with this current release,” says Oliver Hume Real Estate Group project director Gerrard Ellis
“These homes are a ‘totally turnkey’ purchase – buyers can move straight in. As well, council approval has locked in the streetscape, so buyers can be assured there will be no colour changes to neighbouring houses. Internally, with a variety of upgrade and colour options, the choice is all theirs.”
<img src="/images/stories/2012/06/silvan2.jpg">
Each residence affords a variety of interior colour selections, with diverse upgrade options for kitchens and bathrooms. The houses have a six green star rating.
All homes in Scarlet Croydon will be enabled with the latest fibre to the home (FTTH) technology, compliant with the national broadband network strategy (NBN) and can provide services such as telephone and high-speed broadband.
Croydon is also serviced by a network of bus, rail and road routes, including nearby Mooroolbark and Croydon railway stations.  The development is near Eastland and Knox Shopping Centre, as well as EastLink.
This townhouses range in size from 17 square metres to 24.5 square metres.
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Three Croydon townhouses left in Silvan as June 30 deadline draws nearer

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The Commonwealth Bank has announced it will reduce interest rates on its range of variable home loan accounts by 0.21 percentage points per annum with effect from Monday 18 June 2012.
The new Standard Variable Rate is 6.80 per cent per annum.
This ensures NAB will have to reduce its standard variable rate by 20 basis points to keep its promise of offering the lowest standard variable rate of the Big Four banks.
NAB is the last of the major banks to make its interest rate announcement and currently has a standard variable rate of 6.99%
"In making this decision, the Group has continued to balance the interests of its 1.8 million home loan borrowers with those of its 11 million depositors, and those of its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds," the bank said in a statement.
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CommBank passes on 21 bps rate cut to borrowers

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Westpac will reduce interest rates on its standard variable mortgage by 20 basis points to 6.89% from 18 June 2012.
This follows <a href="https://www.propertyobserver.com.au/residential/anz-passes-on-full-rate-cut-to-borrowers/2012060855042" target="_blank">big four rival ANZ passing on all 25 basis points earlier today</a> with its standard variable rate falling to 6.8% from June 15.
Customers on Westpac’s Premier Advantage Package who receive a minimum 0.7 percentage point discount on the headline standard variable mortgage will see their new effective rate fall to 6.19%.
The reduction in home loan rates will save home owners $41 a month or $492 a year in total monthly repayments on an average mortgage of $300,000.
Since October 2011, Westpac has cut its variable mortgage rates by 97 basis points out of the 125-basis-point reduction in the cash rate since November last year.
“This has been a difficult decision as we have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts,” says Westpac Group executive retail and business banking Jason Yetton.
“We also fully appreciate the financial pressures that many households are currently facing even though the economy as a whole is doing well as the latest GDP and job figures released this week showed. That is why we continue to offer discounts on our headline mortgage rate which will see nearly 90% of our home loan customers pay no more than 6.19%.
“And for those borrowers who are looking for security and peace of mind over a longer period given the current financial uncertainty we have also been able today to reduce the rate on our most popular fixed home loan rate, the three year term, to 5.89% once the discount that we offer is taken into account. This new rate will be effective next week.”
“Small businesses will also benefit from the interest rate cuts with cuts in certain headline variable loans of 25 bps. “This is the second time in consecutive months that we have reduced the interest rate on certain variable business loans,” he said.
“Despite increased funding costs, we recognise that it is particularly important at this time to help small business in this way given the critical part this sector plays in supporting the economy and maintaining employment as a whole.”
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Westpac passes on 20 bps rate cut to borrowers

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The current interest rate cutting cycle, which began in November, is not aimed at boosting house prices or “re-igniting a boom in borrowing,” says RBA governor Glenn Stevens. 
Delivering a speech in Adelaide today called “The Glass Half Full”, Stevens said one thing Australia should not do is “try to engineer a return to the boom”. 
Stevens said he agreed that there was a need for more confidence in the economy among households and businesses, but said it had to be “the right sort of confidence”. 
“The kind of confidence based on nothing more than expectations of ever-increasing housing prices, with the associated willingness to continue increasing leverage, on the assumption that this is a sure way to wealth, would not be the right kind. 
“Unfortunately, we have been rather too prone to that misplaced optimism on occasion. 
“You don’t have to be a believer in bubbles to think that a return to sizeable price increases and higher household gearing from still reasonably high current levels would be a risky approach. 
“It would surely be a false basis for confidence. The intended effect of recent policy actions is certainly not to pump up speculative demand for assets. As it happens, our judgement is that the risk of re-igniting a boom in borrowing and prices is not very high, and this was a key consideration in decisions to lower interest rates over the past eight months,” he said.
In his address to the American Chamber of Commerce, Stevens also tackled the nature of the current two-speed economy, blaming it in part on spending habits before the GFC, when property prices were rising by 6% per year. 
He said the dissatisfaction felt in certain sectors of the economy reliant on household spending was not the result of the mining boom not spilling over into these sectors “but a lot to do with events that occurred largely before the mining boom really began”. 
These events, he said, were that “household spending grew faster than income for a lengthy period up to about 2005” and gross debt rising from 70% in 1995 to about 150% in 2007 principally as a result of people investing in housing. 
“Correspondingly, by 2007 the share of current income devoted to servicing that debt had risen from 7% to 12%, despite interest rates in 2007 being below those in 1995,” said Stevens. 
“It is still not generally appreciated how striking these trends were. I cannot say that it is unprecedented for spending to grow consistently faster than income, because it had already been doing that for the 20 years prior to 1995. 
“That is, the saving rate had been on a long-term downward trend since the mid- 1970s. But it is very unusual in history for people to save as little from current income as they were doing by the mid-2000s,” Stevens said. 
“And it is very unusual, historically, for real assets per person to rise at 6 per cent or more per annum. It is also very unusual for households actually to withdraw equity from their houses, to use for other purposes, but for a few years in the mid 2000s that seemed to have been occurring,” he said. 
Overall, he said the Australian financial system is sound and the country well placed.
“Our government is one among only a small number rated AAA, with manageable debt. We have received a truly enormous boost in national income courtesy of the high terms of trade.
“This, in turn, has engendered one of the biggest resource investment upswings in our history, which will see business capital spending rise by another 2 percentage points of GDP over 2012-13, to reach a 50-year high,” he said.
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Current rate cut cycle not aimed at creating ‘risky’ new housing boom: Glenn Stevens

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The number of home loans granted in April rose a seasonally adjusted 0.2% to 46,632, according to ABS estimates released today. 
That compares with an upwardly revised 46,519 home loans in March. 
In terms of overall value, total housing finance rose by 1.2% to $20.45 billion.
Analysts had been forecasting the number of home loans to be flat over April.
The value of owner-occupier mortgages increased by 0.9% over April to $13.6 billion and rose 0.2% in number terms to 46,632 loans.
The value of seasonally adjusted owner -occupier loans rose in Queensland (2%), Victoria (0.3%), Tasmania (1.9%) and the ACT (0.2%), while falls were recorded in NSW (0.8%), Western Australia (1.2%), the Northern Territory (18.8%) and South Australia (2%).
Fixed rate loans accounted for 14% of all loans in April, easing from the 4-year high of 14.6% in March.  
The value of investment housing commitments seasonally adjusted rose 1.7% in April 2012.
The HIA noted that the number of loans for the construction or purchase of new homes increased by an encouraging 2.1% in April following a 3.8% rise in March. 
“Given contemporary weakness in new home construction activity, it is encouraging to see a second consecutive, albeit modest rise in this leading housing indicator,” says HIA chief economist Dr Harley Dale.
Number of mortgage commitments for the purchase of new dwellings
<img src="/images/stories/2012/06/hiajune8.jpg">
Source: ABS
Commenting on the data, CommSec economist Savanth Sebastian said it was important to highlight that this data is backward looking.
"There are modest signs of improvement on the housing front, but the gains are still miniscule in nature and follow a period of sustained weakness.
"On an encouraging note there does seem to be light at the end of the tunnel- particularly given that the substantial rate cuts should entice potential home buyers to sign on the dotted line. In addition the lift in loans for newly-erected homes should eventually lead to more building ahead," he says.
"The fundamentals for the housing sector remain sound. The lack of new residential construction has led to pent up demand, and with migration levels at 3½-year highs, demand for new and existing homes should lift. It really comes down to confidence. A substantial pick up in confidence is needed to justify a turnaround and the recent interest rate cuts and strength in employment may just be the catalyst."
In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 16.8% in April 2012 from 16.4% in March 2012. 
Between April 2012 and March 2012, the average loan size for first-home buyers rose $600 to $280,200. The average loan size for all owner-occupied housing commitments rose $4,400 to $288,900 for the same period, down 4.7% over the past year.
The value of owner-occupier refinancing rose 0.3% in April 2012, following a rise of 1.5% in March 2012. 
The number of bank owner-occupier mortgages issued in April was flat following a 0.3% rise in March. 
The number of mortgages for owner-occupied dwellings financed through non-banks rose 1.8% in April following a rise of 5.3% in March. 
The number of permanent building societies owner occupier mortgages fell 9.6% in April 2012, after a rise of 21.5% in March 2012.
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Mortgage lending up 0.2% in April with 2.1% rise in new housing loans: ABS

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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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.”

[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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