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ANZ will pass on the full RBA cash rate cut to borrowers, the bank has announced as part of its monthly interest rate review.
The bank will lower interest rates for variable rate mortgages and small business lending by 0.25 percentage points per annum effective June 12, 2012.
ANZ’s new standard variable mortgage rate will be 6.80% pa. New small business rates are also effective from June 15.
The 25-basis-point decrease will save customers about $13.50 per week for the average home loan of $280,000, while small businesses will save $6.25 per week for the average business loan of $130,000.
ANZ chief executive Australia Philip Chronican says: "Funding costs remain elevated as a result ofthe deteriorating economic situation in Europe and strong competition for deposits.
“We are, however, pleased to be in a position to reduce rates by 0.25% this month.
“Although there was strong economic growth data this week, we know that several major states and many of our customers are not directly benefiting from the strength of theresources sector.
“The bottom line is that while deposit customers are receiving very competitive depositrates, many of our borrowing customers are under pressure from a range of other costs.We felt that reducing interest rates by 0.25%pa for home borrowers and for smallbusiness was the right decision in these circumstances,' Chronican says.
“This decision recognises that, although we need to be realistic about funding costs and the challenges the global economic situation is presenting, ANZ also needs to absorb itsshare of the burden. Hopefully this decision will help relieve some of the pressures thatwe know home owners and small businesses are facing at present."
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lschlesinger-FZcF9M3vE6

ANZ passes on full 25 bps rate cut to borrowers

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Unit, townhouse and villa prices in tourism-dependent Cairns and the Whitsundays have fallen more than four times the rate of decline in Brisbane over the year to March, according to the latest update from the Real Estate Institute of Queensland (REIQ).
The latest report has the Brisbane median unit price down 3.7% over this period to a median of $387,750, reflecting a state-wide trend of buyers snapping up properties at the cheaper end of the spectrum.
The report notes a “dramatic increase” in numbers of units sold between $250,000 and $350,000, with sales in this price bracket increasing 22%.
In Cairns, the gateway to the Great Barrier Reef, apartments, villas and townhouse prices have fallen 17% in the 12 months to March 2012 to a median price of $212,500.
In March 2011, the Cairns median unit price was $265,000
In the Whitsundays, unit prices are down almost 18% over the same period, falling from $345,000 to $285,000.
These results contrast starkly with sales figures in the mining boom town of Gladstone, where unit prices are up 10.4% to a median of $458,000 over the year to March.
The report notes that the Cairns’ unit market continues to struggle, with sales down 30%.
“Comments from various regional zone chairs, Cairns included, say that units are proving difficult to sell, as buyers are put off by the increased costs associated with owning a unit, such as body corporate fees, insurance levies and council rates.
"As such, buyers end up seeing more value in buying a house, with the ongoing servicing costs equalling that of a unit,” notes the REIQ.
REIQ chief exexutive Anton Kardash says the state-wide increase in more affordable unit and townhouse sales is being driven by demand from first-home buyers and investors, who often target properties at the lower end of the market.
‘‘About 19% of homes financed in Queensland are now being bought by first home buyers, which is the highest level of activity from first-time property buyers since 2009 when the first-home owners' boost was available.
‘‘Investors too are making a long-awaited return to the market, with more than 4,500 properties bought by investors in March this year. The 10-year average is 5,000 dwellings per month, so this is also the strongest level of activity from investors since early 2010,” he says.
The Brisbane satellite cities of Logan City and Redland City both experienced big falls in their median unit price with the REIQ attributing this to a “shift towards affordable stock”.
Logan City unit prices fell 8.9% to a median of $239,000, while the Redland City median unit price was down 14.3% to a median of $307,500.
“Woodridge in Logan saw an increase in sales – particularly for the sub-$250,000 bracket. In Redland, Cleveland sales were down, while more affordable sales in Capalaba were up," says the REIQ.
“Logan recorded the largest increase in sales activity for the southeast, with preliminary sales numbers nearly doubling that recorded over the previous quarter."
The Sunshine Coast was also the only major region in south-east Queensland to record a quarterly increase in its median, up 2.2% to $332,250. 
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Brisbane unit prices ease 3.7% but 17% wipe-out in Cairns and Whitsundays: REIQ

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The Australian economy, the resources sector and housing markets tied to the boom are all set to reap some benefit from China cutting interest rates for the first time in four years.
For the first time since 2008, the People’s Bank of China cut its one-year lending rate by a quarter of a percentage point to 6.31% in an effort to stimulate economic growth.
It comes as the average rate for a 30-year mortgage in the US dropped to its lowest level since 1971, and the Australian cash rate is also just off record lows.
The Chinese central bank has also relaxed borrowing rules for banks, allowing them to offer a 20% discount on the lending benchmark, up from the previous 10% discount.
The deposit rate was cut from 3.5% to 3.25%.
Westpac's weekly Phat Dragon reports says rate cut will allow banks to offer more attractive rates to prospective borrowers, "while being forced to take a view on the competitive landscape for deposits".
"That has margin implications of course - but that is the point. If the authorities wished to jolt the financial sector back onto a commercialisation trajectory (and Premier Wen’s strident rhetorical attack on the banking ‘monopoly’ points decisively in that direction) making them think for themselves...is a very good start," says Phat Dragon.
China relies on Australia for around 5% of its exports, mainly in the form of its mineral resources.
<img src="/images/stories/2012/06/savillsjune8.jpg">
Source: Savills
Iron ore prices have risen 700% and coal more than 400% between January 2003 and February 2012 in line with China’s massive expansion and urbanisation.
Click to enlarge
<a href="/images/stories/2012/06/savillsjune81.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/savillsjune81thumb.jpg"></a>
Source: Savills
The rate cut will also stimulate the Chinese housing market, which has a very high rate of home ownership (89%) and massive urbanisation, with around 16.5 million people moving to the major cities every year.
About 670 million of China’s 1.3 billion population currently live in urban areas.
According to James McDonald, associate director of China research at Savills, Chinese banks are not as heavily exposed to the property market as Australian banks and other world banks because of low gearing ratios.
Banks require a deposit of between 30% to 40% from borrowers and a 60% deposit for a second home, he says.
The latest rate cut is designed to encourage more borrowing and investment and raise the current rate of GDP growth of around 7.5% back closer to around 8%.
In addition, many of China’s 875,000 US dollar millionaires have property investments in Australia.
The last change to the borrowing rate was in July 2011 when the one-year benchmark lending rate was raised by 25 basis points to 6.56%
The global interest rates you need to know:
 3.68% 
The average rate for a 30-year mortgage in the US, the lowest it has been since 1971.
3.59%
The cheapest five-year fixed-rate in the UK offered by the Post Office
3.5%
The cash rate as set by the RBA
2.3% to 3%
The average mortgage rate in Spain
1%
The current official interest rate in the eurozone
0.5%
The current base cash rate as set by the Bank of England
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A global interest rates guide as China rate cut to flow through to Australian property market

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Local property syndicates are pooling their cash to compete with overseas buyers for select income-producing commercial properties offering annual returns of up to 12%, according to Scott Keck, executive chairman of property consultants Charter Keck Cramer (CKC).
In his latest market commentary, Keck says the firm has noted, among the shifting market dynamics, increasing activity by private investment syndicates. 
“A number of parties are pooling an equity fund of up to $30 million to allow leveraged investments of up to $70 million.
“With a strategy for near neutral gearing, syndicates have targeted fundamentally good-quality assets in good locations that are currently underperforming due to a lack of reinvestment in the GFC-affected era,” he says.
“This activity is a reflection of the changing nature of investment by an ageing demographic, seeking safer superannuation investments.
“This internally generated demand for property assets is now competing with strong investment from overseas. Investors from many of Australia’s near Asian neighbours recognise the high returns and low risk with Australian property and seek to engage with our local market,” he says. 
According to Keck, “carefully selected” income-producing retail, office and industrial properties can provide “regular compounding rental growth and capital return to the combined effect of internal rates of return within the range of 8% to 12% per annum”. 
Keck says Australian commercial property is underpinned by the strength of the country’s economic fundamentals - low inflation, declining interest rates, robust population growth and modest unemployment.
And while these domestic factors have been undermined by the current global turmoil, they remain “more favourable than in almost all other developed countries”.
“Most importantly to property markets, commercial accommodation is in shortage given the limited new supply that has been delivered since the late 2000s due to the initial round of impacts following the 2008 GFC,” he says.
These strong fundamentals and the relative unattractiveness of markets like the US and Europe are already attracting foreign institutional investor capital into Australia, he says.
Keck says it’s “no surprise that international investment is now increasingly targeting Australian property given its longer-term investment timeframe and stability”.
“The settling down of the Australian dollar returns a competitive opportunity back to foreign investors and the attractive total returns flowing from quality Australian commercial property offer a very substantial margin above increasingly lower returns elsewhere,” he says.
He points to a recent Dun &amp; Bradstreet analysis of the world’s safest trade and foreign investment destinations listed Australia equal with Canada, Germany, Norway, Sweden and Switzerland as the safest, with Australia occupying the top spot for investment in the Asia-Pacific region, beating Hong Kong, Singapore and New Zealand.
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Local syndicates competing with overseas buyers for high-yielding commercial property: Scott Keck

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ING Direct will pass on 20 out of  25 basis points to variable mortgage holders following the RBA's 25 basis point cash rate cut on Tuesday.
The bank will reduce the interest rate on its variable mortgages by 0.20%, effective Friday 15 June with the rate on its most popular variable rate product,Mortgage Simplifier, reducing to 6.22% per annum.
ING Direct, part of Dutch banking giant ING, passed on 30 out of 50 basis points following the May RBA double cash rate cut.
It passed on both November and December quarter percentage point cash rate cuts in full to borrowers.
The ING Direct announcement follows Bank of Queensland passing on 20 basis points on Tuesday and QT Mutual Bank passing on all 25 basis points yesterday.
None of the major banks have made any announcements yet on rates.
ING Direct is the sixth largest home lender in the country with $38 billion in mortgages – ranking behind the Big Four banks and fifth biggest lender, BankWest, owned by the Commonwealth Bank.
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ING Direct to cut variable mortgage rates by 20 basis points

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With the ACT government moving to replace stamp duty with land tax, the Real Estate Institute of Victoria (REIV) has weighed into the discussion highlighting a 2012 report by the Australian Housing and Urban Research Institute (AHURI), which shows replacing the current system of state-levied stamp duty with a land tax in Victoria would cause the owners of more expensive land closer to the city to pay a much high proportion of the tax burden.
The AHURI report suggested that properties within 20 kilometres of Melbourne CBD, which currently pay 61% of the stamp duty bill, would pay 84% of a new land tax
The biggest shift in the tax burden would be for those properties within 10 kilometres of the city. The aggregate tax bill for these properties would rise from 29% under stamp duty to 46% under a land tax.
Conversely, those properties built on cheaper land further out from the city would pay less tax.
For properties built on land 20 to 30 kilometres from the CBD, the portion of the tax bill would fall from 17% to 10%, while in the next band (30 to 40 kilometres out from the city) the burden would fall from 8% to just 2%.
 
<div align="center">
<table cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td></td>
<td>
Proposed land tax
</td>
<td>
Stamp duty
</td>
</tr>
<tr>
<td>
 
</td>
<td>
% of aggregate revenue
</td>
<td>
% of aggregate revenue
</td>
</tr>
<tr>
<td>
0km &lt; 10km
</td>
<td>
46
</td>
<td>
29
</td>
</tr>
<tr>
<td>
10km &lt; 20km
</td>
<td>
38
</td>
<td>
32
</td>
</tr>
<tr>
<td>
20km &lt; 30km
</td>
<td>
10
</td>
<td>
17
</td>
</tr>
<tr>
<td>
30km &lt; 40km
</td>
<td>
2
</td>
<td>
8
</td>
</tr>
<tr>
<td>
40km &lt; 50km
</td>
<td>
2
</td>
<td>
7
</td>
</tr>
<tr>
<td>
50km &lt; 60km
</td>
<td>
1
</td>
<td>
3
</td>
</tr>
<tr>
<td>
60km &lt; 70km
</td>
<td>
1
</td>
<td>
3
</td>
</tr>
<tr>
<td>
70km &lt;
</td>
<td>
0.2
</td>
<td>
0.2
</td>
</tr>
</tbody></table>
</div>
Source: REIV (from AHURI report)
According to the REIV, there are a range of impacts to consider from such a shift in tax policy.
“One interesting idea suggests that shifting the burden to the more expensive suburbs would encourage greater turnover in outer suburbs, where the majority of transactions occur,” says the institute.
However, it also notes “significant concerns” in replacing stamp duty with land tax, including “a projected drop in land values; the need for the government to run dual taxation systems; and the issues faced by the asset-rich but cash-poor in meeting the new annual bill”.
“Expect to hear more on this debate over the coming years,” says the REIV.
The recommendation to replace stamp duty with a land tax levied on all land came out of the 2007-2008 Henry Review.
It imagined a “municipal rates-type bill” with the review also noting there would be “significant transitional issues, as government could not charge land tax on a property where stamp duty had already been paid”.
The Henry Review recommended that:
“Existing land tax arrangements should be replaced, subject to a long transition to slow valuation effects and facilitate landholding adjustments, by a land tax applying to all land regardless of use. 
<ul>
<li>The rate scale would be based on the value per square metre of land.</li>
<li>A unit value threshold would effectively exempt most land in agricultural use.</li>
<li>Most residential land could be subject to tax of about 1%. A higher rate may apply to the highest value land (per square metre).</li>
<li>Land tax revenue would also replace stamp duties on land transfers.”</li>
</ul>
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Replacing stamp duty with land tax needs debate: REIV

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Housing is at its most affordable level since December 2009, but rental payments as a proportion of family are still hovering around four year-highs, according to the latest REIA/Deposit Power report.
The latest report shows that rental affordability has hardly improved since March 2008 – around the outbreak of the GFC – when rents as a proportion of family income increased to 24.7%.
Rents as proportion of family income remain well above the national long-term average since the December 1995 of 22.7% – despite median family income rising over the March quarter by 1.3% to $1,552.
The March quarter report shows the proportion of weekly family income required to meet weekly rent for a three-bedroom house stands at 24.9%, compared with 24.8% in the December quarter and 25.1% in March 2011.
<img src="/images/stories/2012/06/reiajune7.gif">
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
Over the March quarter, the biggest increase in rents as a proportion of family income was recorded in the Northern Territory, where the proportion rose from 22.9% to 24.1%, with smaller increases in WA (20.1% to 20.8%) the ACT (16.5% to 16.7%) and South Australia (26.2% to 26.3%).
South Australia’s rents are amongst the lowest in the country, with the median rent for a three-bedroom house at $325 per week. The median two-bedroom other dwelling rent is $275 per week.
ACT rents are amongst the highest in the country at $470 per week for a three-bedroom house, and $445 for a two-bedroom other dwellings.
Rental affordability improved in Victoria during the quarter (alongside housing affordability), with the proportion of income required to meet median rents decreasing 0.6 percentage points, from 22% in the previous quarter to 21.4%. Compared with the March quarter of the previous year, this figure declined 1.5 percentage points.
Renting in NSW remains the biggest drain on family finances – accounting for 28% of family income, down from 28.8% in the December quarter but up from the 27.7% recorded a year ago.
Tasmania, where incomes are lower, is the second most expensive place to rent at 26.6% of family income, though there has been a noticeable drop from 29.5% a year ago, when it was the most expensive state to rent.
The historically high cost of renting is influencing the behaviour of real estate agents in a challenging operating environment, according to REIA chief executive Amanda Lynch.
Lynch says some estate agents are relying on their management of rental properties as a source of income.
<img src="/images/stories/2012/06/reiajune72.gif">
The March quarter REIA/Deposit Power report shows that nationally, the proportion of family income required to meet loan repayments decreased by 0.9 percentage points compared with the previous quarter and now sits at 32%.
This pushed up the REIA Home Loan Affordability Indicator (HLAI) – the ratio of median family income to average loan repayments – to 31.3, its highest point since December 2009, but still well below the long-term average of 38.6.
“Housing affordability is still not at ideal levels, but at least we are now heading in the right direction,” says REIA president Pamela Bennett.
“If other factors continue to trend in the same direction, the interest rate cuts in May, and those announced yesterday should bring further good news for housing affordability next quarter,” she says.
First-home buyer participation in the housing market decreased in the March quarter.
The number of new finance commitments to first home buyers decreased 18.8% to 23,637 compared to 20.2% of buyers in March 2011 while the number of first home buyers, as a percentage of total owner occupied housing commitments, decreased to 18.0% during the quarter, compared to 20.0% in the December quarter 2011.
This proportion is dramatically down from the 30.6% level of the June 2009 quarter.
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Housing affordability improving but rental costs still at four-year high: REIA

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Stockland will build its new Brooks Reach community park in Horsley in the Illawarra based on the ideas and insights from 150 Dapto Public School kids aged five to 10.
The 6,800-square-metre park – the size of a football field – will incorporate many of the featured suggested by the kids, including a three-metre-high, seven-metre long “tower slide”; a large circular “bird’s nest swing”; and a spinning “supernova” carousel-like ride. 
It marks the first time in Australia that a developer has asked for children's input through consultation prior to the planning of an urban development. 
Last year the developer partnered with Professor Karen Malone of the University of Western Sydney last year to conduct research around what local children wanted to see in their own neighbourhood and the new one being developed at Brooks Reach.
The Wollongong Council has granted the park DA approval, and construction is expected to start mid-year, with completion due around October 2012. 
Malone said the top five things the children wanted from their playground were: 
1. Secret and shady places for cubby building
2. Thrill seeking
3. A play space where they could create their own space
4. A place that promotes learning /a place that keeps and protects nature
5. A place where we can create communities
 
 
Click to enlarge
<a href="/images/stories/2012/06/kiddieplayground.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/kiddieplaygroundthumb.jpg"></a>
“This feedback from the kids means that Stockland is now able to create a playground that gives kids all the things they want and dreamed of – a chance to be imaginative, explore, test their limits, learn and laugh with their friends,” says Malone. 
“The Brooks Reach park research been a fantastic project to lead, and is something new for Australia and in fact globally to have children involved in a design process initiated by a developer like this. 
“It’s great that Stockland actively looked to get the community involved in this way. It is not something that happens every day, and I’m sure the result will be terrific.” 
Stockland senior development manager Michael Braithwaite says the kids’ involvement has added an exciting element to the design process. 
“Encouraging a healthy and active life is something Stockland is really passionate about, so we wanted to come up with something that the kids and their families would enjoy and use regularly. 
“The best way to give the kids what they really wanted was to involve them from the outset. We’ve now got a design that caters to all age groups in a really meaningful way. It’s been a very exciting and eye-opening experience for everyone,” he says.
 Dapto Public School deputy principal Cheryl Seagrove says: “Most of the children who will be living at Brooks Reach will attend Dapto Primary School, so we were very interested in establishing a link between the school and the new neighbourhood. 
“We’ve worked with Stockland in the past on similar initiatives, such as the recent launch of the Walking Bus here in Dapto. It’s been wonderful to see a developer take on board the insights of local children and allow them to authentically participate in the planning process,” she says.
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Brooks Reach estate developer gets playground lesson from school kids

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QT Mutual Bank has passed on the full 25-basis-point rate cut to its borrowers – only the second lender to make an announcement about mortgage rates since the RBA cut the cash rate to 3.5% on Tuesday.
The Bank of Queensland reduced its standard variable rate by 20 basis points soon after the announcements.
The major banks and their subsidiaries have all tweeted – in response to queries from borrowers – that they are reviewing their interest rates.
They may wait until tomorrow to make their decisions to force ANZ to move first, as ANZ announces its rates on the second Friday of the month independent of the RBA announcement.
The small mutual lender, formerly the Queensland Teachers Mutual Bank, was started by a group of teachers in 1965.
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QT Mutual Bank passes on full rate cut, but major banks stay silent

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The discount on the standard variable rate that lenders have been willing to offer borrowers to entice them to fix their home loans has been shrinking since the RBA began cutting rates in November last year, according to figures compiled by RateCity.com.au. 
Based on analysis of 120 lenders in the RateCity.com.au database, the data shows that the gap between the benchmark three-year fixed rate and benchmark standard variable rate has shrunk from 74 basis points to 47 basis points – and is likely to fall further when the latest cash rate cut is passed on in part by lenders.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/fixedjune7.gif"><img src="/images/stories/2012/06/fixedjune7thumb.gif"></a>
Source: RateCity.com.au
It could fall even further if predictions by Westpac chief economist Bill Evans that fixed rates will start to rise prove accurate. 
As of June 1, the average standard variable rate was 6.59%, compared with 6.12% for the average three-year fixed rate, according to RateCity.com.au. 
Fixed rates have, on average, been cheaper than standard variable rates since the middle of last year, but the frequency of lenders reducing their fixed rates has slowed since the start of the year.
They remain popular relative to recent historic demand, but have fallen from their peaks of a few months back, May mortgage processing figures recently released by Mortgage Choice and AFG revealed.
 
<div align="center">
<table cellpadding="0" cellspacing="0" border="1" style="width: 428px;"><tbody>
<tr>
<td valign="bottom" colspan="4" nowrap width="428">
Average Home Loan Rates
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76"></td>
<td valign="bottom" nowrap width="139">
Standard Variable
</td>
<td valign="bottom" nowrap width="107">
3y Fixed
</td>
<td valign="top" width="107">
Difference
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Nov-11
</td>
<td valign="bottom" nowrap width="139">
7.31%
</td>
<td valign="bottom" nowrap width="107">
6.57%
</td>
<td valign="top" width="107">
0.74
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Dec-11
</td>
<td valign="bottom" nowrap width="139">
7.08%
</td>
<td valign="bottom" nowrap width="107">
6.41%
</td>
<td valign="top" width="107">
0.67
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Jan-12
</td>
<td valign="bottom" nowrap width="139">
6.84%
</td>
<td valign="bottom" nowrap width="107">
6.26%
</td>
<td valign="top" width="107">
0.58
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Feb-12
</td>
<td valign="bottom" nowrap width="139">
6.82%
</td>
<td valign="bottom" nowrap width="107">
6.26%
</td>
<td valign="top" width="107">
0.56
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Mar-12
</td>
<td valign="bottom" nowrap width="139">
6.86%
</td>
<td valign="bottom" nowrap width="107">
6.27%
</td>
<td valign="top" width="107">
0.59
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Apr-12
</td>
<td valign="bottom" nowrap width="139">
6.86%
</td>
<td valign="bottom" nowrap width="107">
6.35%
</td>
<td valign="top" width="107">
0.51
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-May-12
</td>
<td valign="bottom" nowrap width="139">
6.87%
</td>
<td valign="bottom" nowrap width="107">
6.34%
</td>
<td valign="top" width="107">
0.53
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="76">
1-Jun-12
</td>
<td valign="bottom" nowrap width="139">
6.59%
</td>
<td valign="bottom" nowrap width="107">
6.12%
</td>
<td valign="top" width="107">
0.47
</td>
</tr>
<tr>
<td valign="bottom" colspan="2" nowrap width="215">
Source: www.ratecity.com.au
</td>
<td valign="bottom" nowrap width="107"></td>
<td valign="top" width="107">
 
</td>
</tr>
</tbody></table>
</div>
 
Currently, the Greater Building Society is offering the cheapest three-year fixed rate of 5.79% with seven lenders – ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society – offering a rate of 5.99%. 
RateCity.com.au top variable home loans as of June 5, 2012 are: 
 
<ol start="1">
<li>UBank, UHomeLoan – 5.83%</li>
<li>Loans.com.au, Dream Catcher – 5.85%</li>
<li>Bank MECU, Refinance – 5.94%</li>
<li>State Custodians, Standard Variable Offset – 6.02%</li>
<li>IMB, Budget Home Loan – 6.04%</li>
</ol>
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Fixed-rate mortgage discounts diminishing as variable rates play catch-up: RateCity

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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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."

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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.

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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."

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Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

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While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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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.”

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A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

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“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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