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There are many residential investment opportunities in NSW under the magical $500,000 mark, according to the Westpac Property Report, a quarterly snapshot compiled by valuation firm Herron Todd White (HTW).
Herron Todd White CEO Brendon Hulcombe says the report “challenges the notion that owner-occupiers and investors have limited choice on a tight budget when it comes to purchasing property”. “The slowdown impacting markets over the past 12 months has provided exciting buying opportunities,” Hulcombe says.
“Quality properties that a few years ago would have been well beyond this price bracket can now be secured for $500,000, in some cases with change to spare.”
HTW’s NSW state-based team has identified opportunities under $500,000 in western Sydney, in the Newcastle and the Hunter region, on the central coast and on the mid-north coast where yields can be as high as 8% –  well above the savings rates being offered by banks.
Sydney
In the capital city, a budget of $500,000 limits investor options to units or lower-quality houses in the city’s western suburbs, according to HTW.
Unless investors have an underlying need to own a house in this region, HTW valuers suggest considering the apartment market, which will “generally deliver a wider choice of locations, stronger rent returns and more stable capital growth.
“If we focus on the apartment market, the central western suburbs of Auburn and Parramatta offer the strongest yields, typically between 5.4% and 5.7%. The area’s median price of $370,000 will fund a reasonably modern 2-bedroom apartment.
“For investors seeking longer term capital growth, inner ring suburbs like Neutral Bay, Leichardt and Randwick have historically recorded stable price gains, and this is expected to continue over the coming years,” HTW says.
Hunter region and Newcastle
According to HTW, there are good investment opportunities under $500,000 across the Hunter region.
“Rental vacancies are very low at 1.5% and rental growth is strong, taking many properties close to being cashflow positive.
“It is worth focusing on areas with proximity to major employers, as these offer year-round tenant demand. Waratah, Jesmond and Shortland for instance are all close to either major Newcastle hospitals or the University of Newcastle,” says HTW.
HTW picks the Hunter Valley towns of Singleton, Rutherford and Aberglassyn as good investment opportunities, with all benefiting from the strong mining sector with “very healthy” rental growth.
“Plenty of new housing stock is becoming available, and these properties offer more generous depreciation allowances than older dwellings,” HTW says.
Central coast
The median house prices for Gosford and Wyong is currently $400,000 and $325,000 respectively, which gives investors with a $500,000 budget a multitude of options on the NSW central coast, notes HTW.
The investment opportunities vary widely, from a house in Woy Woy or a unit at Umina to a holiday letting in Avoca.
NSW valuers from HTW say there has been a noticeable escalation of investor interest in San Remo, Blue Haven, Narara, Umina Beach and Woy Woy, with yields ranging from 4.5% to 6%.
Mid-north coast
HTW advises investors consider the option of purchasing two or more properties at the lower end of the market, where “rental vacancies are very tight, yields are high and there is greater potential for capital growth”.
“As a guide, in Port Macquarie and Forster it is possible to buy an older-style two-bedroom unit close to the beach for less than $250,000.
“Alternately, pre-1975 houses close to the town centre or modern villas suitable for retirement can be purchased for under $350,000,” says HTW.
In the small country towns of Taree and Kempsey, HTW says investors can afford to purchase three dwellings and recommend targeting prime locations – “notably older houses on large lot sizes”.
“The older part of Taree West, which was developed pre-1985, offers excellent value for money with a good selection of houses currently listed for sale for less than $250,000.”
Some former Department of Housing properties can be purchased for less than $125,000. These properties are returning rental yields in the order of 7% to 8%.
HTW valuers also note that in the current weak market both investors and owner-occupiers stand to benefit from a growing number of forced sales.
“This is being exacerbated by an oversupply of modern high-rise units in Forster, and weakened demand in the $450,000-plus price range throughout the greater Taree area.”
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High-yielding investment opportunities for under $500,000 in NSW include western Sydney and regional areas: HTW

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Eight apartments in The Rose Group’s $2 billion Breakfast Point development in Cabarita sold over the weekend, with buyers cashing in on NSW stamp duty concessions before they end in less than a month. Four of the sales were to first-home buyers.
All eight properties bought were one-bedroom-plus-study apartments and sold below the $600,000 threshold for accessing the <a target="_blank" href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863">NSW home builders’ bonus</a>, which ends on June 30.
A spokesperson for The Rose Group told Property Observer three first-home buyers had purchased in the recently released Sirius building (below) and one in the previously  released Scarborough building (second photo).
<img width="470" src="/images/stories/2012/06/breakfast1.jpg">
<img width="470" src="/images/stories/2012/06/breakfast2.jpg">
The NSW home builders’ bonus provides full exemption on stamp duty for new homes where the value does not exceed $600,000 and also applies to vacant land up to $400,000.
The scheme is available to everyone, including investors, who purchase a new house or apartment. For homes already under construction, a partial stamp duty reduction of 25% is available up until June 30.
According to Bob Rose, group chief executive of the Rose Group, about 170 buyers in Breakfast Point have claimed the stamp duty concession to date. He says many of these are first-home buyers.
Rose told The Australian Financial Review he was not worried about the ending of the stamp duty rebate impacting on sales in the masterplanned development.
Upon completion in 2016, the 52-hectare waterfront development will accommodate 1,865 homes and house up to 5,000 people.
In May last year, the $2 billion project reached the $1 billion sales milestone, with more than 1,300 homes and apartments sold over the past 11 years by its joint developers Rose Group and Cbus Property.
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Breakfast Point buyers cash in on NSW builders' bonus before it expires July 1

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Aussie Home Loans and the Commonwealth Bank have picked up multiple awards at the 22ndAustralia Banking and Finance Magazine Awards held recently in Sydney. 
John Symond’s Aussie was named mortgage broker of the year for the fifth consecutive year and also won in the “best advertising, marketing and promotional campaign” and “best career development program”. 
In a year in which it acquired prominent Melbourne mortgage aggregator National Mortgage Brokers (nMB) and grew its mortgage book to $43 billion, Symond said winning the mortgage broker of the year award was particularly valued.
The Commonwealth Bank picked up five awards including three for its personnel, with Ralph Norris, who stepped down as chief executive at the end of November (replaced by Ian Narev), named financial services executive of the year.
However, the CBA lost out to ANZ for major bank of the year, while Suncorp was named best of the second-tier banks. Online bank ING Direct picked up the technology kudos with an award for Andrew Henderson, its chief information officer.
Westpac and NAB went home empty-handed on the night.
Newcastle-based lender the Greater Building Society was name building society of the year for the second year running, fending off competition from Illawarra-based IMB as well as Queensland-based Wide Bay Australia.
The building society has almost 250,000 customers across NSW and south-east Queensland and has assets worth almost $5 billion.
Greater chief executive officer Don Magin paid tribute to his staff for helping make the building society a “real competitor to the major banks” and one that is not “beholden to shareholders”. 
Gateway Credit Union was named best credit union. 
The full list of AB&amp; F winners are:
 
INNOVATIVE MORTGAGE PRODUCT OF THE YEAR
QBE – HomeKeeper
 
INNOVATIVE RETAIL BANKING PRODUCT OF THE YEAR
Commonwealth Bank - CommBank Kaching
 
INNOVATIVE CARD AND PAYMENT PRODUCT OF THE YEAR
Suncorp Bank - Visa Prepaid Card
 
BANKING WEBSITE &amp; ONLINE OFFERING OF THE YEAR
HSBC - HSBCnet Mobile
 
ADVERTISING, MARKETING &amp; PROMOTIONAL CAMPAIGN OF THE YEAR
Aussie
 
BEST USE OF SOCIAL MEDIA
Commonwealth Bank - Commonwealth Bank Facebook Places with Deals
 
BEST CAREER DEVELOPMENT PROGRAMME
Aussie 
MORTGAGE BROKER OF THE YEAR
Aussie
 
BUILDING SOCIETY OF THE YEAR
Greater Building Society
 
CREDIT UNION OF THE YEAR
Gateway Credit Union
 
LAW FIRM OF THE YEAR
King &amp; Wood Mallesons
 
AUSTRALIAN FINANCIAL INSTITUTION OF THE YEAR – Non-Big Four
Suncorp Bank
 
AUSTRALIAN FINANCIAL INSTITUTION OF THE YEAR – Major Banks
ANZ
 
CHIEF INFORMATION OFFICER OF THE YEAR
Andrew Henderson, Chief Information Officer, ING Direct
 
CHIEF RISK OFFICER OF THE YEAR
Alden Toevs, Commonwealth Bank
 
CHIEF FINANCIAL OFFICER OF THE YEAR
Peter Marriott, ANZ
 
BANKING AMBASSADOR AWARD
Bryan Fitzgerald, Commonwealth Bank
 
FINANCIAL SERVICES EXECUTIVE OF THE YEAR Ralph Norris, Commonwealth Bank
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Wins for Aussie, Greater Building Society and CBA at annual banking awards

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The inability of developers of residential property and the commercial property sector to access financing for their projects remains one of the biggest changes to the banking sector following the 2007 GFC, according to the Reserve Bank.
“The most significant change in business lending since the onset of the global financial crisis has been in the provision of finance to the commercial property sector, including developers of residential property,” says the RBA in its submission to the Senate Economics References Committee’s inquiry into the post–GFC banking sector.
“Some of this reflects the fact that the foreign banks which have scaled back their operations in Australia had large exposures to this sector. Other banks have also reassessed the risks of lending to this sector, in light of commercial property exposures accounting for a disproportionate share of impaired bank loans.
<img src="/images/stories/2012/06/rbajune51.gif">
“Beyond developments in commercial property, the softness in business credit in the years following the global financial crisis has reflected both weak demand from the non-mining business sector as it has taken a more conservative approach towards debt in an uncertain environment, and the mining sector making little use of domestic intermediated credit,” says the RBA.
Recently though, the RBA says, there have been some “tentative signs that larger business borrowers are willing to take on some additional debt”.
<img src="/images/stories/2012/06/rbajune52.gif">
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Residential developers struggling to access financing post-GFC: RBA

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Commercial property investors can earn rental yields as high as 11%, about double the yields from bank deposit products, if they are willing to bear the risk, according to research by Colliers International.
Primary yields in the bulky goods store sector range from 8.5% to 9.5%, and yields can be as high as 11% in secondary markets like the Gold Coast.
But Colliers head of national research Nerida Conisbee warns that this market is currently oversupplied due to a lot of development in the mid-2000s.
There are 112 bulky good centres in Australia covering more than 2 million square metres of retail space with an average size of 18,000 square metres, according to Colliers
In 2011 an additional 318,000 square metres of bulky good space was added to the market.
According to realcommercial.com.au, there are close to 100 bulky good stores up for sale on the Gold Coast, with 335 stores available for lease
Conisbee says the Gold Coast is seen as an even risker bulky goods investment because there are fewer tenants than other markets and higher vacancy rates.
“A longer-term hold might be OK,” she says.
Investors looking for less risky investments with strong yield potential should consider the neighbourhood regional shopping centre market, Conisbee says.
Prime yields in sub-regional and neighbourhood shopping centres start from around 7% and rise up to as 10% in the secondary market.
Conisbee suggest investors consider regional shopping centres under $5 million as well as suburban strata offices.
Those investors with shallower pockets might consider investing in a listed or unlisted retail trust to gain exposure to the sector.
Conisbee says smaller industrial assets are also doing particurlarly well in Melbourne and Brisbane, where there is an undersupply, with yields ranging from 7.75% to 8.5%
There are, she says, opportunities in strip retailing, but she says investors should tread carefully because of huge variation in quality and returns.
She says the most sought-after assets are Sydney and Melbourne offices and regional shopping centres – out of reach of smaller investors, though exposure is possible through buying shares in REITs and investing in unlisted trusts.
However, yields are lowest in these “sharpest investment categories” because of the strongest investor demand.
“This is because foreign investors are really looking and competing for these assets,” she says.
Other prime assets being sought by foreign investors and superfunds are Perth and Brisbane CBD offices.
The average yield in Sydney and Melbourne CBD offices ranges from 6.5% to 7%; from 7% to 7.75% in Brisbane and between 7.5% and 8% in Perth.
Outside of the sought-after CBD markets, prime yields range from 7.5% to 8.5% in CBD fringe locations like North Sydney, rising up to more than 10% in secondary locations in places like Chatswood and St Leonards.
Adelaide prime CBD fringe yields range from 6.5% to 7.25%, according to Colliers.
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Commercial property offers yields as high as 11% but comes with risk: Colliers

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Investors and owner-occupiers may now be able to borrow at loan-to-value (LVRS) ratios as high as 95%, according to Ray White deputy chairman Sam White.
Banks were only willing to lend up to 90% of the value of the property last year, but this has now risen to 95%, says White, who is also the executive chairman of Ray White’s mortgage broking arm Loan Market.
However, the catch is that property valuers continue to be conservative, meaning a 95% loan could actually be under 90% of the agreed purchase price if the bank receives a lower valuation.
Banks lend based on the independent valuation they receive of the property – not the agreed purchase price – meaning borrowers must make up the shortfall themselves.
Overall, though White says Loan Market brokers are seeing “more aggressive lending”, with lenders also reviewing their serviceability criteria.
A similar phenomenon was noted by mortgage broker Smartline, which said banks were now willing to look at secondary incomes when considering loan applications
White says some lenders will consider rental payments as well as irregular income, such as bonus payments and commissions.
“We can place clients with a strong rental history,” White told The Australian Financial Review.
Furthermore he says fixed interest rates remain attractive, while variable mortgage rates are set to fall with more RBA rate cuts expected.
Find out why buying an investment property as your first purchase could be the easiest and cheapest way to get your foot on the property ladder by signing up for tomorrow’s free Property Observer webinar with Michael Matusik: Tips for buying your first property as an investment. The webinar will take place on Tuesday, June 5 at 12.30pm.
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Banks relaxing LVRs and serviceability criteria but valuations still conservative: Sam White

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There are now proportionally fewer properties to rent in the middle suburbs of Sydney than in suburbs closest to the Sydney CBD, according to April figures compiled by the Real Estate Institute of NSW (REINSW). 
Despite the overall state vacancy rate lifting by 0.1 percentage points to 1.7% during April, the vacancy rate in the middle suburbs (10 to 25 kilometres from CBD) tightened 0.3 percentage points to 1.6%. 
The residential vacancy rate in the middle suburbs has been falling since the start of the year – in January it stood at 2.1% 
In comparison the vacancy rate rose 0.2 percentage points to 1.7% in the inner-city suburbs and in the outer suburbs (more than 25 kilometres from the CBD) over April.
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Despite a fall of 0.1 percentage points to 2.9%, Wollongong remains the NSW city with highest percentage of available rental properties. 
Vacancy rates in Newcastle remained unchanged at 1.6% while on the central coast, the percentage of available rental properties rose 0.1 percentage points to 2.3%. 
Regionally, vacancies fell sharply in the Riverina shire in the south-west from 4.4% in March to 3.1% April. 
The Coffs Harbour market also tightened noticeably from 4.9% to 4%, but the region still has the highest vacancy rate in the state. 
 
The shire of Murrumbidgee, 630 kilometres west of Sydney, which has a population of around 2,400, recorded the lowest vacancy rate of 1%.
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REINSW president Christian Payne describes the April data as a “mixed bag” proving the point that the “rental market varies significantly from one area to another”. 
However, he says the message underlying the mixed results is that “much more needs to be done to address the chronic shortage in rental accommodation. 
“Sydney, the nation’s global city, has a rental vacancy rate that hasn’t managed to claw its way above 2% at any time in the past 12 months. 
“This situation has very human consequences, with prospective tenants struggling to find accommodation in a timely and affordable manner. 
“What we need urgently is a commitment from government to work cooperatively at all levels on resolving this problem and getting investors back into the NSW property market,” he says.
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Fewer rental vacancies in Sydney middle suburbs than in the inner city: REINSW

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The Sydney inner-city apartment market will remain undersupplied until 2019, pushing up rents and delivering rising returns for investors, while Melbourne landlords will struggle due to an oversupply of new apartments, according to BIS Shrapnel.
This is despite more apartments due to be completed in Sydney than in Melbourne between now and 2016.
The most recent apartment construction phase commenced in both cities from 2009-10 following an improved economic outlook and rising rents and yields, but construction was more pronounced in Melbourne, creating the current oversupply.
“The pipeline of construction in inner Melbourne points to record levels of supply, while activity in inner Sydney is also coming to recent highs,” says BIS Shrapnel senior manager Angie Zigomanis.
BIS Shrapnel is forecasting an undersupply of 2,500 apartments in Sydney in 2012.
This will fall over the next four years to an undersupply of 500 apartments as new apartments are completed but will then start rising again from 2017, reaching a shortfall of close to 2,000 apartments in 2018 and 2019.
The forecast is for about 2,000 rental apartments to be completed in inner Sydney in 2013-14 —similar to its 2003-04 peak but below the 1999-2000 peak of 2,500 apartments.
However, this will be insufficient to erode the pent-up rental demand in the inner-Sydney apartment market, and despite further high construction over the following two years, BIS Shrapnel anticipates a modest deficiency of apartments in inner Sydney will still be in place by 2016.
“This environment should continue to support rental growth in inner-Sydney apartments,” says Zigomanis.
“The continued tight rental market and rising rents are expected to support further investor demand and consequently price growth over the next two to three years, particularly if economic growth starts to recover and confidence returns.”
Sydney inner-city apartment rents are forecast to rise by around 5% to 6% per annum over 2012-13 and 2013-14 (compared with 6.7% between 2006 and 2012) before slowing in subsequent years as the deficiency eases with new supply coming on stream
Price growth is expected to be similar, says BIS Shrapnel.
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Source: BIS Shrapnel
Melbourne is forecast to have an undersupply of 1,800 apartments over the next two years but once projects in the pipeline are completed over the next two years the undersupply will more than halve by 2014 before tipping into oversupply by 2015.
In 2016, the surplus of inner-city Melbourne apartments is set to peak at over 2,500 before declining over the next two years and returning to a small undersupply by 2019.
The oversupply of Melbourne apartments is forecast to be driven by an annual rate of 2,800 rental apartment completions from 2013-14 to 2015-16 compared with just 1,800 completions in 2011-12.
Over the past decade Melbourne rental apartment completions have averaged 1,600 per year while tenant demand has remained at 1,500 apartments per year.
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“The record levels of new apartment supply in inner Melbourne over 2013-14 to 2015-16 will push the market into oversupply and vacancy rates will rise,” says Zigomanis.
“The high level of competing stock means that landlords will be unable to command the premiums that are traditionally available for new apartments, while owners of older established apartments will have to discount the asking rent on their apartments in order to compete,” he says.
The lower rents will translate into lower returns for potential investors.
Prices for inner-Melbourne apartments are forecast to remain flat while sales volumes fall until the excess supply is absorbed.
According to BIS Shrapnel, in many instances, owners will experience a decline in prices if they resell.
In its forecasts, BIS Shrapnel breaks down the inner-city population profile in Sydney and Melbourne into three categories:
<ul>
<li>Students, with the growth mainly coming from overseas students;</li>
<li>Young professionals, who are typically employed in white-collar occupations in the CBD or CBD fringe locations; and </li>
<li>Empty-nesters, such as older singles or couples without children living in the family home. </li>
</ul>
The first two groups, it says, largely create demand for apartments as tenants, while empty-nesters are typically owner-occupiers and will therefore occupy the apartment they have purchased. 
“Apartment rent demand from young professionals experienced a setback during the GFC as employment in the financial sector declined. While this rebounded briefly as the recovery came through, growth has again slowed in line with the economy,” says Zigomanis.
“Student demand has also weakened, although most of the reduction in overseas student numbers has taken place in the vocational education sector compared to the university sector, and with major university institutions located close to the Sydney and Melbourne CBDs, the softening in student demand has been less pronounced. As a result, tenant demand has softened.”
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Sydney inner-city apartments to deliver better returns than Melbourne until 2019: BIS Shrapnel

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 About 60% of apartments in The Emerald development in Albert Park have been sold about a month after the development launched, with marketing soon to start in Asia. The project is being marketed by Colliers International.
<img src="/images/stories/2012/06/emerald1.jpg">
The 20-storey project features one-bedroom apartments from $345,000 and two-bedrooms from $567,000,<a href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863" target="_blank"> under the Victorian' government's $600,000 threshold for the $13,000 first-home bonus</a>.
<img src="/images/stories/2012/06/emerald2.jpg">
The upscale apartment project being developed by the Golden Age Group is situated between the CBD, Southbank arts area and the city’s “garden precinct” of the Royal Botanic Gardens and Albert Park Lake.
<img src="/images/stories/2012/06/emerald3.jpg">
It features 282 apartments across 19 levels in a commanding wave-like building designed by The Buchan Group Architects
<img src="/images/stories/2012/06/emerald4.jpg">
The Emerald will look south-west across Albert Park Lake to Port Phillip Bay, north to the city and east to the Botanic Gardens and the Shrine of Remembrance.
<img src="/images/stories/2012/06/emerald5.jpg">
Three levels of the new building will have “podium” apartments; two levels of apartments will have private terraces; and another two levels will also comprise penthouse-style apartments.
<img src="/images/stories/2012/06/emerald7.jpg">
 
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Designers at Hecker Guthrie have selected natural palettes, organic materials and timeless craftsmanship for the fixtures, finishes and public spaces.
<img src="/images/stories/2012/06/emerald6.jpg">
Purchasers have a choice of colour schemes and with 47 different floor plans across various levels, with emphasis on maximising living spaces, creating highly functional kitchen and laundry areas and making use of generous outdoor balconies.
<img src="/images/stories/2012/06/emerald8.jpg">
“We’re very excited to be bringing a luxury development to this prestigious location and have already seen a lot of early interest from those seeking an inner-city lifestyle with easy access to Melbourne’s best parks and gardens,” says Golden Age Group’s Jeff Xu.
<img src="/images/stories/2012/06/emerald9.jpg">
<img src="/images/stories/2012/06/emerald10.jpg">
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Emerald bringing sparkle to Albert Park for under $600,000 

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Australia’s banks have increased the margins they earn on their loans by 25 basis points over the past 12 months adding to the 130-basis-point buffer built up over the previous four years, says the RBA in a submission on the state of the banking sector, post-GFC.
According to the RBA, the increases “reflect efforts by banks to retain their net interest margins in the face of a combination of higher funding costs  relative to the cash rate, a shift in the composition of funding towards higher-cost forms, including equity, and an increase in expected loan losses".
However, as the graph below shows, households have fared better than small businesses when it comes to the increasing cost of borrowing money:
<img src="/images/stories/2012/06/rbajune5.gif">
In its submission to the Senate Economics References Committee’s inquiry into the post–GFC banking sector, the RBA highlights that since the onset of the GFC in 2007 “there has been a lift in the whole structure of interest rates in the economy relative to the cash rate”.
“This has reflected higher wholesale credit spreads and increased interest rates on deposits due to increased competition. Higher funding costs for financial intermediaries have led to higher loan rates relative to the cash rate.
“This realignment of funding costs and lending rates, relative to the cash rate, has occurred at various stages over the past five years. While funding costs and lending rates had largely stabilised relative to the cash rate by the end of 2010, over the past year there has been a further increase in both funding costs and lending rates relative to the cash rate,” says the RBA.
However, the central bank says the implementation of new capital and liquidity standards under Basel III global bank rules is “likely to have only a marginal effect on lending rates relative to the cash rate”.
“As stated on a number of occasions, the Reserve Bank Board has taken these developments into account in its setting of the cash rate, to ensure that the lending rates faced by bank customers are consistent with the desired stance of monetary policy,” says the RBA.
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Banks have pushed up their lending margins, but funding costs have risen: RBA

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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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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