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WA’s Supreme Court has ruled that a ‘rent to buy’ scheme operated illegally because the owners were not licensed estate agents and also misled people who signed up.
The landmark ruling handed down by Master Craig Sanderson declared that unlicensed promoters of a rent-to-buy scheme, No Loan Home Pty Ltd, its sole director Filip (Fil) Butkovic and employee Nikola (Nik) Butkovic, of Nedlands, had engaged in misleading and deceptive conduct.
Under the ruling No Loan Home Pty Ltd, the proprietor of the business Perth’s Easyhomes WA has been restrained from advertising and promoting the scheme or entering into any further rent-to-buy transactions without first obtaining a real estate agent’s licence.
WA’s Consumer Protection first raised allegations about the scheme.
It says the ruling has implications for all promoters of rent-to-buy schemes, and is now looking into other similar schemes.
Rent-to-buy schemes are targeted at people who don’t qualify for a home loan.
Buyers enter into a contract whereby they agree to pay rent to the seller in return for being able to purchase the property at a later date.
Under the scheme being promoted by No Loan Home, the buyer paid an "upfront option fee" to the business of about $15,000, as well as an "ongoing option fee", a proportion of which was to be credited towards the final purchase of the property.
The buyer was required to sign a tenancy agreement with the seller in which rent was payable until the end of the contract period, usually four years, when the option to purchase would to be exercised.
“The Supreme Court judgment [handed down on May 30] supported the WA Commissioner for Consumer Protection’s allegation that the promoters had also breached the Australian Consumer Law by misleading potential purchasers regarding the future value of the property, the potential equity that they are able to build up over a four to five year period and their ability to obtain finance at the end of this period,” said WA’s Department of Commerce’s consumer protection division.
“The company’s website and advertising material makes misleading representations as to future property values without setting out the basis for these estimates.
“The Supreme Court ruled that the ‘rent to buy’ transactions are real estate transactions for the purposes of the act,” it said.
“The Supreme Court supported Consumer Protection’s belief that the promoters of these schemes were engaging in real estate transactions so were required to be licensed and were therefore operating outside the law,” said acting commissioner for consumer protection Gary Newcombe following the ruling.
“Our major concern was that the consumers who took part in these schemes didn’t have the protection that the licensing system and laws offer and now we have legal clarity over these issues following the Supreme Court ruling.
“Consumers have recourse to a fund for reimbursement where serious misconduct of a licensed real estate agent causes loss, and licensed agents are accountable to the Commissioner under a Code of Conduct and the Act. Those operating without a licence provide no such protections.
“These schemes prey on vulnerable people who are finding it difficult to either sell or buy a home. We urge consumers who have had dealings with No Loan Home or any other rent to buy scheme to contact us.”
Consumer advocate Neil Jenman, a long campaigner against rent-to-buy schemes, calls them “dangerous scams” that are “designed by predators who prey on the poor” in 2007.
“They are a complete rip-off and should be outlawed," Jenman said. “Like all slick scams, 'rent-to-buy' schemes are so seductive. The pitch goes like this: We are here to help you. We have a unique system. If the banks reject you, we can help you.  “And on and on and on it goes. One twisted truth after another.”
According to Jenman, victims of these scams are ripped off in three ways. "First, they are charged an exorbitant amount of rent ... second, as well as the exorbitant rent, the "buyers" (victims) pay an exorbitant price for the home, and thirdly, buyers are not the owners of the homes they are buying," he says.
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WA “rent to buy’ scheme ruled deceptive and illegal with other similar schemes facing investigation

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Low interest rates have kept demand for fixed-rate home loans at high levels, according to May mortgage processing figures from Mortgage Choice and AFG.
However, the broker figures also show that the May rate cut encouraged more borrowers to take out variable-rate products, suggesting that demand could rise if most of yesterday’s official rate cut is passed on by the major banks. 
According to Mortgage Choice spokesperson Belinda Williamson, the June rate cut and forecasts of further rate cuts could make variable-rate home loans even more attractive to borrowers. 
“Stronger demand for variable rate home loans is likely to be at the expense of fixed-rate loans,” she says. “More borrowers may choose variable over fixed, in at least the short term, as they become even more comfortable with variable rate loan pricing. In May, Mortgage Choice data suggested that borrowers found comfort in lenders’ decisions to pass on the majority of the rate cut savings. “On the flipside, fixed rate loan uptake levels could be influenced by increasingly attractive fixed-rate loan pricing. In recent months, some lenders dropped their fixed-rate loan pricing to below 6%,” Williamson says. As at June 4, 2012, the average three-year fixed-rate loan interest rate, based on lenders on the Mortgage Choice panel, was 6.28%, one-year was 6.14% and 5-year was 6.69%. "Borrowers will be wise to weigh up the benefits of further rate cuts against the affordability and security of fixed rate loan pricing," says Williamson.
Official ABS data on demand for fixed rates lags two months behind rate decisions (May housing finance data will only be released in July), with April showing 15% of borrowers choosing a fixed-rate product, the highest level in four years. 
So the May results from the two mortgage broking businesses – which combined write around one in five home loans in Australia – provide a good estimate of current consumer appetite for fixed-rate loans.
Mortgage Choice May figures show a small drop in fixed-rate demand in May, though fixed rates still account for one in five home loans written by its brokers.
This is below the six-month average (22.5%) but above the 12-month average (19%). 
Mortgage Choice highlighted that fixed-rate demand fell marginally, despite a number of lenders dropping their fixed-rate pricing below 6% in May. 
The Greater Building society offers a three-year fixed rate of 5.79% while seven lenders (Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society) offer a three-year fixed rate of 5.99%. 
The May Mortgage Choice figures show that basic variable mortgages were the only product category were demand rose over the month, up from 14% to 17% of all mortgages – above the 12-month average and at a nine-month high. 
According to Williamson, basic variable mortgages “tend to be more affordable but less flexible with fewer features at the borrower’s disposal”. 
“The increased interest in basic variable rate loans, which is now at a nine-month high, could signal a return to the market by first homebuyers, as these loans tend to be more popular with lower income and less experienced borrowers who are still finding their feet in home loan market.”
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Similar to Mortgage Choice figures, close to one in five home loans written by AFG brokers in May was for a fixed-rate product. 
For AFG brokers, standard variable loans proved most popular with borrowers – accounting for 59% of all loans processed over May – up from 57.5% and rising for the second straight month having fallen from January to March.
According to Mortgage Choice May figures the biggest increase in variable-rate loan demand was recorded in SA (up 12%, to 85%), followed by NSW (up 4%, to 77%), WA (up 1%, to 79%) and Queensland (up 1%, to 74%). 
The only state to buck this trend was Victoria, where the popularity for variable-rate loans dropped by five percentage points, to 86%. 
Ongoing discount-rate loans – where the interest rate is discounted over the entire loan term, usually in exchange for an annual fee – made up 40% of all variable-rate loans approved in May. This was in line with April, but slightly below the six-month and 12-month average of 41%.
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Low interest rates keep fixed mortgage demand high, but popularity of basic and standard variable products rising: Mortgage Choice and AFG

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Tasmanian Liberal Senator David Bushby has joined the chorus of voices opposed to the government doubling the withholding tax rate to 15%.
The tax is charged on income foreign investors earn when they invest in Australian managed investments schemes, many of which fund large property and infrastructure projects.
Since the increase was announced in the budget, <a href="https://www.propertyobserver.com.au/tax/lend-lease-slams-15-withholding-tax-as-property-council-fails-to-convince-wayne-swan-to-scrap-it/2012053154915" target="_blank">the Property Council of Australia, Lend Lease and the Financial Services Council</a> have all slammed the decision, saying it will scare off foreign investors, but they have failed to sway Federal Treasurer Wayne Swan.
“The government’s policy reversal on a tax critical to foreign capital inflows sends the wrong signals,” wrote Bushby in a letter published in the Australian Financial Review today.
“Investment banks will reassess investments in listed property and other assets, and advise their clients of lower than expected future returns from Australia.
“For Australian investors who hold wealth and retirement assets in listed property and infrastructure assets, the withdrawal of foreign capital will only add downward pressure on share prices – and cause retirees even more grief,” he wrote.
Bushby accused the federal government of raising the tax without public reviews or industry consultation.
However, he failed to mention that under John Howard’s Coalition government the withholding tax rate stood at 30%.
It was cut to 7.5% by the Rudd government in July 2010.
The federal government has played down suggestions that the latest tax hike will scare off foreign investors.
Tony McDonald, general manager of Treasury’s international tax and treaties division, told a government committee there would be no “flight of capital” though he acknowledged that some transactions would not take place due to the higher tax rate.
He also said the impact of the tax hike on the economy would be “fairly minimal”.
McDonald made his remarks while giving evidence to the House of Representative Standing Committee on Economics earlier this week as it met to consider the withholding tax increase (as contained in the Income Tax Amendment Bill) and other new pieces of legislation.
According to Treasury estimates, the tax increase will bring in additional revenue of $260 million over the next four years.
Also giving evidence, Martin Codina, director of the Financial Services Council, claimed lost investment would be much higher than the increased tax revenue.
He claimed as much as $1 billion in investment had already been lost while goodwill generated by the low tax rate would also be lost.
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Tasmanian Liberal senator joins chorus against doubling of foreign investor tax – but keeps quiet on Howard-era 30% tax rate

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The Brisbane housing market is starting to experience the benefits of the resources boom but the Gold Coast remains one of the “worse performing markets,” says CBRE in its second quarter south-east Queensland market view report. 
The report notes that the Sunshine Coast housing market continues to struggle – though not to the same extent as the Gold Coast market – with both coastal markets not seeing much benefit from the mining boom in central and northern Queensland.
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CBRE mortgage valuations regional director Tom Edwards says the Gold Coast is clearly a buyers’ market, with slow conditions still prevailing. 
“The Gold Coast remains one of the worst-performing residential markets in Australia, with oversupply in the unit market a major issue,” he says. 
“The oversupply of prestige apartments is still the biggest issue on the Gold Coast, with a lack of active buyers in this sector,” says the report.
The Sunshine Coast faced similar conditions in the second quarter, though the value decline was not as steep. Some signs of increased activity were recorded in the quarter in the lower price brackets, but these markets remain overwhelmingly soft. 
“The prestige market, particularly in Noosa, is still trending down, with agents reporting very low levels of buyer interest,” says Edwards. 
The report says that these two markets are under pressure from low levels of buyer confidence, with sales volumes continuing to trend downwards. 
Illustrating clearly the uneven effects of the mining boom on regional property markets, recent figures released by the Real Estate Institute of Queensland (REIQ) for the March quarter show Gold Coast house prices down 5.1% to a median of $454,000. 
In comparison, house prices in the resource-rich Isaac region are up 28% to a median of $703,000 over the same period. 
Brisbane house prices improved 1.2% over the March quarter, according to the REIQ, to a median of $505,000, but are still down 4.7% over the past year. 
The REIQ says the March quarter result indicates the Brisbane housing market has turned a corner, with “positivity finally returning to the market”. 
However, according to CBRE the improvements in Brisbane have not been sufficient to indicate an increase in capital housing values in the state. 
“Improvements have been identified for properties within a 15-kilometre radius of the Brisbane CBD, though activity is still confined to realistically priced property,” says CBRE global research and consulting associate director Sam Reilly. 
“In some instances, back-up contracts are being sighted by valuers indicating some proven levels of demand that have also been illustrated by reduced selling periods." 
However, tough operating environments remain in areas that are not exposed to the benefits of the resource sector such as the Gold Coast and Sunshine Coast. 
CBRE says that Queensland, while remaining a state that is showing strong prospects courtesy of the huge expansion in the mining sector, is experiencing significant challenges in other sectors. 
Challenged sectors include tourism, manufacturing and construction. 
However, CBRE expects the mining boom to provide longer-term opportunities for the state including in terms of jobs and infrastructure improvements. 
Further west, the Toowoomba market continues to record historically low sales volumes, but buyer sentiment has improved as a result of the change in state government and interest rate reductions, says CBRE. 
According to Edwards, the short- to medium-term outlook for the overall south-east Queensland market is likely to continue remain segmented, with scheduled growth proportionate to resources proximity.
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Brisbane property market recovering but Gold Coast still struggling: CBRE

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The publication of yesterday's monetary policy statement shows the Reserve Bank board appears to have finally gotten the message that the residential housing market is not just treading water but is actually in decline. 
Previous monetary policy statements have acknowledged that the housing market had declined in 2011, but appeared to skirt around the issue of falling house prices in 2012 with some ambiguous-sounding adjectives. 
In May the RBA suggested the housing market was “subdued” and in April the RBA said it was “soft”. 
However, finally in its June statement, the bank has come out and admitted that the market is fallen again in 2012. 
“Housing prices had shown some signs of stabilising around the turn of the year, but have recently declined again,” reads the June statement, though it could not resist adding: “Generally, the housing market remains subdued.” 
This change in perspective on the housing market was noted by Bill Evans, Westpac’s chief economist. 
“In May, house prices were described as 'stabilising', whereas one month on the governor chooses to point out that prices have 'recently declined again',” Evan said in a note following the June cash rate announcement. 
Perhaps taking note of the RBA’s acknowledgement of the decline in the housing sector this year, the Housing Industry Association (HIA) for once did not have an angry word to say about the central bank, reserving its testiness for the banks. 
The HIA press releasebegan with the back-patting headline: “RBA deserves a policy tick of approval for rate cut” and went on to say that the decision to cut rates would “help confidence and activity in residential construction and the wider domestic economy”. 
“Today’s rate cut sends a clear signal that the Reserve Bank is serious about two things: insulating the Australian economy from volatility in the world economy; and improving confidence and activity in the domestic economy,” says HIA senior economist Andrew Harvey.
Harvey says the attention now is on Australia’s banks, which have a “social obligation in such volatile times to pass through 100% of the official rate cut to businesses and households”.
However, others were quick to warn that the rate cut would not be a magic pill for the residential property market. 
Mark Courtney, Colliers International research director, says banks are unlikely to pass on the rate cut in full – “if they pass on any rate cut at all”. 
“Consequently, today’s RBA decision is likely to have only a minimal impact on the real estate sector,” he says. 
“For a greater impact, additional cuts are still needed. Ideally, the RBA will be looking to reduce the official cash rate by another 25 to 50 basis points over the next few months.” 
Paul Nugent, director at Wakelin Property Advisory, warned property market participants not to expect a dramatic reaction in the residential property market off the back of the June rate cut, “at least not in the coming weeks”. 
“There won’t be a massive jump in auction clearance rates and certainly not a spike in property prices. Instead, I anticipate the market to remain steady.
“The market is finely balanced. On one side it’s been held back by weak consumer confidence off the back of international economic uncertainty. On the other side, we have reasonable local economic conditions, lower interest rates, improved affordability, and a transparent market," he says. 
Nugent says that if the interest rate reduction cycle continues, “at some moment a tipping point will be reached when the economic and property fundamentals become so compelling that it will overcome the current inertia born from uncertainty”.
“Keep an eye on the gap between net rental yields and the standard variable mortgage rate. It is currently around 4%, which is its long-term average.  If this gap falls to 3% as a result of falling interest rates and steady-to-rising rents, that will be a green light signal that the property market is ‘good value.’  This may be the tipping point for a more sustained recovery,” he says.
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Finally! RBA board acknowledges housing market is neither subdued nor soft but declining

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The Bank of Queensland (BOQ) is the first lender to move following today’s 25 basis point rate cut announced by the RBA. 
Just half an hour after the RBA decision, BOQ says will cut its standard variable rate by 20 basis points as of 16 June 2012, bringing its standard variable rate home loan to 6.91% p.a. 
The bank reported a statutory loss of $91m for first half 2012.
BOQ chief executive and managing director Stuart Grimshaw says continued global economic uncertainty had influenced BOQ’s decision to pass on 20 of the 25 basis points. 
“Volatility in overseas markets continues to push up the cost of funds and demand for deposits in Australia. 
“Competition for deposits is at an all time high, but the RBA is trying to encourage consumers to spend, so we’re pleased to assist by passing on a 20-basis-point cut today,” he says.
BOQ was also one of the first lenders to announce its rate decision following the May 1 RBA cash rate cut of 50 basis points - passing on 35 basis points to variable mortgage holders.
However, the bank lifted its standard variable mortgage rate by 0.1% in March, independently of the RBA, to cover the costs of higher funding.
It passed on both 25 basis point cash rate cuts in November and December in full.
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Bank of Queensland passes on 20 out of RBA's 25 basis points

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Mortgage Choice says today’s 25-basis-point rate cut was expected following a “somewhat subdued reaction to last month’s 50-basis-point rate cut, soft retail sales, weak consumer sentiment and concerns over the direction of the global economy”. 
“The second consecutive monthly cash rate cut will hopefully boost borrowers’ spirits by helping to increase their ability to repay their home loan,” says Mortgage Choice spokesperson Belinda Williamson. 
“Borrowers should be putting heat on their lender to pass on the full 0.25 percentage point rate cut savings." 
According to Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, today’s cash rate reduction should help boost spending following numerous signs that Australians don’t have confidence in the economy, including low take-up of mortgages, poor retail spending figures and banks holding a record $544 billion of consumer savings, according to APRA. 
“Even if lenders only pass on 20 basis points of this rate cut, by July, variable interest rates will have fallen by 92 basis points since October 2011, and variable-rate borrowers on a $300,000 mortgage would be paying $184 less per month in repayments,” she says. 
“In November 2009 when the cash rate was 3.5%, the average standard variable rate was 5.75%. 
“Even if lenders pass on the full 25 basis points this month, the average standard variable rate would still be 6.33%, which is 58 basis points higher than November 2009. So this means variable borrowers could be paying about $112 more per month for a $300,000 mortgage compared to November 2009,” she says. 
Tim Lawless, national research director at RP Data, says the rate cut will provide a further boost to housing affordability, “which the RBA has recently suggested is back around levels not seen since 2002”. 
“The big question now is how much of the rate cut will be passed on by the banks privately and whether this will be enough to provide a shot in the arm for the housing market. 
“Our latest index data showed capital city home values fell by 1.4% over the month of May, which is a factor the Reserve Bank would have been conscious of when deliberating their interest rate setting. Such a significant fall over a single month was unexpected, considering the cash rate was slashed by 50 basis points in the same month.  Not only did home values fall further in May, but we also saw consumer sentiment remain fairly steady, suggesting the May rate cut has had little effect in stimulating consumer confidence and spending,” says Lawless.
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Decision to cut rates by 25 basis points will help spending and lift spirits: Mortgage Choice, RateCity.com.au

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The Reserve Bank has cut the cash rate by 25 basis points to 3.5% today following its June monetary policy board meeting.
This is the lowest the cash rate has been since November 2009.
Borrowers will find out in the next few days how much of the rate cut will be passed on to them by their lenders.
ANZ will make its independent interest rate announcement on Friday, June 8 – the second Friday of the month.
Ahead of the RBA announcement, a Reuters poll of 20 economists had 10 expecting a 25-basis-point rate cut, four expecting no change, and six expecting a 50-basis-point cut.  
This was up from just four out of the 19 economists surveyed last week by Bloomberg, who expected the RBA to cut rates today.
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RBA cuts cash rate by 25 basis points to 3.5%

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Australia’s biggest mortgage broker, AFG, processed more than 7,600 mortgages worth more than $3 billion in May, recording its best month since March 2009.
The bump was helped by an increase in borrowers from WA, more loans from property investors and the average mortgage size rising from $383,000 to $393,000.
The May sales figures fell just short of the previous high of $3.15 billion from 8,988 loans mortgages written in March 2009, when the cash rate was at 3%, its lowest point for RBA records going back to 1990, with banks charging an average standard variable rate of around 5.8%.
In March 2009 the average size of a mortgage was $350,000.
The May figure was a 32% increase on the $2.27 billion (5,900) worth of mortgages processed in April – AFG brokers write one in every 10 mortgage processed in Australia.
In achieving its best month in more than three years, AFG bucked the overall national trend of stagnant mortgage growth, with the RBA recording only a 0.4% increase in housing credit provided over April and housing credit up just 5.3% for the year – the lowest growth since 1977.
Home loans processed for WA borrowers by AFG brokers hit an all-time high of $683 million over May, second only to NSW ($812 million) with Victoria ($641 million) and Queensland ($627 million) trailing behind. 
The percentage of mortgages arranged for property investment purposes increased from 35.2% to 37.1% over the month while those refinancing declined slightly from 36.2% to 35.8%
First-home buyers accounted for 15.8% of all mortgage sold – unchanged from April but well up on the 13.2% recorded a year ago by AFG brokers.
According to Mark Hewitt, general manager sales and operations, the automatic assumption that the May rate cut is behind the big increase tells only part of the story.
“We’re probably also seeing more borrowers turn to brokers to help them get the best deal in an increasingly competitive and complex market,” Hewitt says. 
“In addition, May is generally a stronger month, after the public and school holidays in April. 
“These figures do not conflict with the softening house price data published late last week. 
“Mortgages are processed before sales are confirmed, so our data is more a snapshot of where we are right now. Reduced property prices and interest rates are bringing more people back into the market, but anecdotally, many potential borrowers are still worried by both the offshore news as well as weakening conditions at home,” he says. 
Fixed-rate home loans remain near all-time highs (19.7%) “confirming continued borrower uncertainty” with lenders outside of the big four banks picking up 33% of AFG mortgage commitments in May.
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AFG processes highest volume of mortgages in three years in May

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Fund managers have acquired nearly half of the debt-laden Becton Property Group, which has struggled since the onset of the GFC. 
Following Darren Olney-Fraser’s fund management business the Mariner Corporation acquiring a 20% stake yesterday, Sydney-based fund manager Telopea Capital has bought a 19.9% stake, while property investment firm and fund manager Titanium Property has acquired a 7% stake. 
The three firms acquired the shares that were held by PricewaterhouseCoopers, the liquidator of Australian Capital Reserve (ACR), a financing company that collapsed in 2007. 
The decision to snap up the shares is  expected to provide some support to Becton following reports last week in the Fairfax press that the company was at the mercy of its lender after revealing debts of $200 million and assets of just $800 million. 
The sale was made possible following an agreement with ACR liquidator Greg Hall of PricewaterhouseCoopers and Macquarie Bank over the weekend. 
Mariner acquired 1.47 million shares for $1 million, equating to a price of 68¢ per share as well as $1.56 million in options, which can be converted into shares at no cost by 2021. Taking up the share options would raise Mariner’s stake to 26.9%. 
Andrew Kerr, managing director of Telopea Capital, says Becton has been held back because half of its shares have been controlled by a liquidator and says the recent transactions would provide diversification to its shareholder base and provide it with partners with “experience in capital partnerships and the real estate development markets”. 
In a statement Becton said it believed it had “sound long-term fundamentals” and that Mariner believed it was “in a good position to continue to reduce its debt from its current development projects and rebuild the business through the next property cycle”. 
Becton is currently working on three residential development projects with forecast settlements worth $1.23 billion and six retirement village projects with forecast settlements of $177 million. 
Current projects include Divercity in Waterloo in Sydney’s eastern suburbs; a master-planned development in Newleaf, Bonnyrigg near Liverpool in Sydney’s outer west, and Liv in Kensington, the inner-Melbourne suburb north-west of the CBD. 
Last week Becton revealed that it had obtained an extension on its financing arrangements with Suncorp on a $2.2 million loan for projects in Wahroonga and Hervey Bay but had not been able to negotiate the refinancing of a $73 million retirement community loan with Suncorp.
Becton is currently undertaking a revaluation of its retirement assets in conjunction with the Oman Investment Fund in the hope of securing a short-term extension of debt facility with Suncorp. 
The results of the revaluation will be completed on June 30, the value of retirement assets is expected to be reduced by between $20 million and$30 million.
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Fund managers acquire nearly half of struggling Becton Property Group

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.

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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.

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Larry Schlesinger

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