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ASX-listed non-bank lender Homeloans Ltd will look to acquire other broker networks following the acquisition of the $1.9 billion Refund Home Loans loan book and distribution network.
The purchase of the loan book, distribution network and assets of Refund Home Loans will be settled on June 8, after which Wayne Ormond’s Refund Home Loans brand, which once had around 350 loan writers, will disappear.
“The Refund Home Loans brand is tarnished and will no longer exist,” says Homeloans Ltd spokesman Scott McWilliam.
The purchase price has not been disclosed.
McWilliam tells Property Observer the Refund deal is a “distribution and acquisition play” for Homeloans Ltd, which is on the look-out for further ways to grow its brand and distribution network.
The acquisition will grow the current Homeloans Ltd book from around $6 billion to close to $8 billion while its current retail broker network of around 30 could soar to more than 160 should all of the remaining 135 Refund loan writers choose to sign up with the non-bank lender.
McWilliam says brokers that sign up with Homeloans Ltd will still have the option to offer customers mortgage refunds (paid from the commissions they receive) but says he does not expect many will continue do so.
“A lot of them would prefer not to and they don’t see as a selling point,” he says.
All current Refund Home Loans brokers will be given the opportunity to sign “branded broker contracts” with Homeloans Ltd.
Refund Home Loans branded cars and other marketing material will be rebranded with Homeloans Ltd, while brokers will also receive marketing support, lead generation support and the support of the Homeloans Ltd business development manager (BDM) network and company infrastructure.
“Brokers will continue to offer the same range of products and continue to aggregate under Choice. Homeloans Ltd are already a lender on the Choice panel,” says McWilliam.
The purchase is to be funded from Homeloans Ltd’s cash reserves.
 
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Homeloans Ltd looking at other acquisitions following Refund deal

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Westpac is tipped to relocate its back-office operations to Lend Lease’s new Barangaroo development on the Sydney shore.
The decision to relocate was taken at a board meeting last month, according a report in the Australian Financial Review, which quotes “senior sources”.
Lend Lease declined to comment on the speculation while Westpac told AFR it had yet to make a decision.
Over the past few years <a href="https://www.propertyobserver.com.au/office/big-banks-have-big-investments-in-cbd-office-space-in-melbourne-and-sydney/2011122052906" target="_parent">Australia’s four biggest banks have collectively invested about $2 billion dollars in new office developments in Melbourne and Sydney</a>, with NAB’s new futuristic building next to Etihad Stadium at Docklands currently taking shape.
A spokesperson for Westpac says it is currently reviewing its property requirements in the Sydney CBD.
“At this stage no commitment has been made and we are considering our options,” the spokesperson added.
KPMG has also been linked to the project, which is expected to include two towers known as C4 and C5.
According to the April Barangaroo update, construction of the retention wall at Barangaroo South while piling underway is for the foundations of the first commercial building and shared basement.
 
 
 
 
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Westpac mooted as Barangaroo anchor tenant

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The Reserve Bank has presented the carrot, but few borrowers appear to be biting, according to mortgage enquiry figures from mortgage broker Loan Market. 
Loan Market, part of the Ray White Group, has recorded only a 5% increase in loan enquiries to date in May compared with April. 
The Loan Market update follows mortgage comparison website Ratecity.com.au noting that the biggest change in borrower behaviour of late has been an increase in refinancing activity, with 18,000 borrowers refinancing their home loans in March – the highest number of refinanced home loans in one month since April 2008. 
Loan Market says the underwhelming response from consumers to date means further stimulus is needed. 
“The RBA’s 50-basis-points rate reduction was an essential starting point and with most banks passing on a significant amount of the rate cut, mortgage holders have been able to start better combat the rising cost of living,” says Loan Market corporate spokesman Paul Smith. 
“But it looks as if more reductions from the RBA will be needed to make a real impact on the economy, especially in housing and retail.” 
“With the situation in Europe deteriorating over the past few weeks again, fresh concerns over the domestic impact of a eurozone collapse will keep consumer confidence reserved and subdued.” 
“The RBA has room to take the cash rate down significantly, and we expect to see the official rate lowered again at the central bank’s June meeting,” he says. 
A recent Loan Market online poll found <a target="_blank" href="/news">almost 80% of consumers were using the benefits from the May rate cut to boost their home loan repayments or increase savings. </a>
Only 2% of respondents were planning to spend the extra cash resulting from the interest rate reduction. 
“Further rate cuts are essential to revive struggling sectors such as retail and housing which have been floundering in this two-speed economy,” says Smith.
 
{module What do you intend to do given the current interest rate fluctuations?}
{module Have you changed lenders in the last six years?}
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May rate cut failing to stimulate mortgage demand: Loan Market

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Melbourne registered a 7.3% increase in housing affordability over the March quarter, with the overall national HIA-Commonwealth Bank Housing Affordability Index improving for the fifth straight quarter to its highest level since September 2009. 
Housing affordability has been trending up since December 2010, according to the index.
The index improved by 6.4% (3.7 index points) in the March 2012 quarter to be 11% (6.1 index points) higher over the year and at a reading of 61.8.
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This reading indicates that housing still remains relatively unaffordable for the average wage earner. 
An index reading of 100 indicates that an individual earning an average income could service a mortgage on a median-priced property with mortgage costs taking up 30% of their income. 
Currently, based on a median house price of $459,000 an individual would need to earn an income of $113,000 to comfortably service their loan and make monthly repayments of $2,800. 
The most affordable capital city housing market is Hobart, with an index of 73, while Sydney is the least affordable with an index of 50.
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The March quarter improvement in Melbourne was matched by an identical improvement in Adelaide, with Brisbane up 6.3%. 
However, both Sydney and Perth recorded deteriorating affordability in the March quarter of 2012, with their indices falling by 1% and 1.8% respectively. 
Among the smaller capital cities, Hobart housing affordability improved by 3% and Canberra by 7.1%. 
Outside of the capital cities, affordability improved in all states with the exception of Victoria, which was unchanged. Affordability in non-metropolitan New South Wales was up by 2.4%, Queensland was up by 4.5%, South Australia was up by 6.4%, Western Australia was up by 8.7% and Tasmania was up by 0.4%. 
Conditions are beginning to tilt back in favour of those trying to enter the housing market, says the HIA.
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Melbourne and Brisbane lead housing affordability increase to highest level since September 2009: HIA-CBA index

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The federal government will fund two-thirds of the cost of mortgage brokers obtaining a diploma-level qualification, the Mortgage &amp; Finance Association of Australia (MFAA) has announced at its annual conference currently underway in Adelaide. 
The MFAA will receive $2.4 million as part of the government’s National Workforce Development Fund. 
The money will pay two-thirds of the cost of around 3,000 MFAA members obtaining a Diploma of Finance and Mortgage Broking Management. 
Also at the conference, the MFAA announced that it would extend the deadline for members acquiring the diploma by six months from June 30 2012 to January 31, 2013. 
However, members must have enrolled in a course by June 30, 2012. 
Under ASIC credit licensing rules, loan writers are only required to obtain the less challenging certificate IV in finance and mortgage broking. 
The MFAA requirement is aimed at raising training standards to a higher level. 
The subsidy is available to MFAA members who are yet to complete the diploma and enrol for training by June 15, 2012. 
The MFAA board has decided to give priority for these grants to members who have joined in recent years and will rely on aggregator and broker group for providing particpants. 
Almost 70% of MFAA members have completed the diploma requirement or are in the process of completing it. 
Participants in the scheme will be able to choose from nine MFAA preferred education and training providers. 
MFAA chief executive Phil Naylor says the funding demonstrates the federal government is “well and truly behind MFAA’s efforts to increase education and service standards in the industry” 
“We are hopeful that, following this success, we will be able to provide members with further financial assistance for their professional development in the future,” says Naylor. 
Based on new home lending figures for the March quarter compiled by the Australian Bureau of Statistics, mortgage brokers were the source of $23.4 billion worth of home lending during the March quarter, with annualised lending volumes of close to $100 billion. 
Mortgage brokers provide 42% of home lending in Australia up from 25% a decade ago.
 
 
 
 
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Federal government to subsidise MFAA mortgage broker training

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Property investors who borrow through their self-managed super funds to acquire a property will be allowed to undertake some improvements following the release of a final ruling by Tax Commissioner Michael D'Ascenzo. 
The new ruling clarifies what constitutes an allowable repair or maintenance of a property acquired by a SMSF under limited recourse borrowing rules. 
Under the ruling SMSF investors would be allowed to extend their property; add a swimming pool; extend an outdoor entertainment area; and add a garage shed and driveway without breaching borrowing rules. 
“While each of the following changes would be improvements each (or all) of the changes would not result in a different asset,” says the ATO. 
Under previous guidelines issued in July 2010 a renovation was not allowable if the renovation changed the asset so that it was no longer the same asset that was originally purchased. 
The guideline resulted in much industry concerns about the guidelines resulting in a draft ruling in September last year and the final ruling issued yesterday by D'Ascenzo. 
The final ruling distinguishes between repairs as “something that reinstates the function of the asset compared with an improvement that improves the asset,” says Andrea Slattery of industry body the SMSF Professionals' Association of Australia (SPAA). 
“Where the improvement is significant then it is possible the nature and function of the asset that was originally acquired has changed materially to the extent that a new asset has come into existence. 
“The examples provided in the ruling help to clarify what constitutes a significant improvement. 
“It makes it clear that the amount borrowed can be used to repair the asset but where there is an improvement the cost must be obtained from other sources, such as the super fund,” she says. 
Examples include where a 'granny flat' is to be constructed in the backyard of a property that already has a four-bedroom residence established on it. 
“The granny flat will have two bedrooms, a family room, a kitchen and a bathroom and will be connected to utilities such as electricity, water and sewage.
“The character of the asset would remain residential premises and thus the construction of the granny flat would not result in there being a different asset,” says the ATO. 
Another example the ATO gives is of a residential house that is converted into a restaurant by renovations that include fitting out a fully functioning commercial kitchen. 
“As a result of the renovation the character of the asset has fundamentally changed from residential premises to restaurant premises. This is a different asset,” says the ATO.
The other examples provided are:
<ul>
<li>A vacant block of land is subsequently subdivided resulting in multiple titles. One asset has been replaced by several different assets as a result of the subdivision. 
</li>
<li>A residential house is built on vacant land which is on a single title. The character of the asset has fundamentally changed from vacant land to residential premises. This is a different asset. 
</li>
<li>A house is demolished following a fire and is replaced by three strata titled units. The character of the asset has fundamentally changed along with the underlying proprietary rights. This has created three different assets. 
</li>
<li>One bedroom of a residential house is converted to a home office. This would not ordinarily result in a change in the overall character of the asset as a residential house. The conversion of the bedroom into an office does not result in a different asset 
</li>
<li>Fire destroys a four bedroom house and a new superior residential house is constructed on that land using both insurance proceeds and additional SMSF funds. Rebuilding another residential house (whether of the same size or larger) does not fundamentally change the character of the asset held under the LRBA. The addition of a garage, for example, would also not change the character of the asset. 
</li>
<li>To allow a road to be widened, a local government authority undertakes the compulsory resumption of a minor portion of the frontage of a property which has a residence on it. While the resumption results in the existing property title being replaced, the minor extent of the resumption is such that the fundamental character of the asset, taking account of not only the proprietary rights but also the object of those proprietary rights, remains that of being the residential property. </li>
</ul>
You can download the Self Managed Superannuation Funds Ruling SMSFR 2012/1.
<a href="http://propertyobserver.com.au/ebooks/16-questions-self-managed-super-fund-trustees-should-ask-before-investing-in-property" target="_blank">For more on property investors and SMSF, download our free eBook.</a>
For end-of-year tax tips for property investors, watch our free webinar.
 
 
 
 
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ATO ruling specifies allowable repairs and renovations for SMSF property investors

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Property investors who borrow through their self-managed super funds (SMSF) have received clarity over what constitutes a “single acquirable asset” following the release of a much-anticipated ruling by Tax Commissioner Michael D'Ascenzo. 
The final ruling provides 15 examples of what constitutes a single acquirable asset. 
Under limited recourse borrowing rules SMSFs require a separate lending arrangement for each “single asset” they acquire. 
However, guidelines introduced in July 2010 created confusion among investors and their advisors in instances where they acquired what common sense would suggest would be a single property but over two titles – such as an apartment on one title and the accompanying car park under another title. 
The new ruling clarified situations where there may be two separate assets at law but because they are inseparable then they will be treated as a single asset for limited recourse borrowing purposes. 
It says that in the above example of an apartment and car park on separate titles, these will be treated as a single acquirable asset and hence will only require one limited recourse borrowing arrangement. 
Other examples of what is deemed a single acquirable asset by the ATO include a building such as a factory or farm building that straddles two property titles. 
However, an investor acquiring a serviced apartment that also requires the purchase of a furnishing package, even if under one contract, would require two separate borrowing arrangements. 
“The commissioner’s interpretation of these terms has provided a common sense and practical solution to legislation that could be read far more strictly,” says SMSF Professionals' Association of Australia chief executive Andrea Slattery. 
“It’s encouraging to see the commissioner adopt such an approach, and it will certainly make life much easier for trustees – and their advisors – of self-managed super funds.” 
“The issue that arose was around what constituted a single acquirable asset, and with this ruling it has clarified instances where there may be two separate assets at law but, for all practical purposes, are one asset,” she says. 
Other examples provided by the ATO include: 
Two adjacent blocks of land 
As part of the investment strategy of an SMSF, the trustees of the SMSF want to acquire two adjacent blocks of land under a single LRBA. While the vendor will only sell the two blocks together, there are no physical or legal impediments to the two blocks of land being sold separately. 
The two blocks of land are not a single acquirable asset. As a result, the two blocks of land cannot be acquired under a single LRBA. However, the blocks of land could be acquired under separate LRBAs. 
A factory complex on more than one title 
A trustee of an SMSF wants to enter into an LRBA to acquire a factory which is constructed across three titles. The existence of the factory adds considerably to the value of the land and thus is a significant part of the value of the asset. The factory is therefore relevant as a unifying physical object. 
The factory and the land comprised of the three titles, is a single acquirable asset and can be acquired under a single LRBA. 
However, if the factory was derelict and thus not of significant value relative to the land this asset could not be acquired under a LRBA as the factory is not relevant as a unifying physical object and thus the assets are the three titles. 
Purchase of residential premises 
The trustees of an SMSF want to acquire land that has an existing residential house on it. A deposit is paid to the vendor on signing the contract to acquire that land with the house. The balance of the purchase price is paid at settlement 60 days later. The relevant asset acquired is the land along with the existing house. 
The land with the existing house is a single acquirable asset and the deposit and the payment at settlement is applied for the acquisition of that asset. The trustees of the SMSF can enter into a single LRBA to fund both payments. 
Completed 'off-the-plan' apartment 
The trustees of an SMSF enter into a contract to purchase a strata titled apartment 'off-the-plan'. A deposit is required upon entering into the contract with the balance to be paid upon settlement for the completed strata titled apartment. 
A single LRBA can be entered into to fund both the deposit and the balance to be paid under the contract upon settlement. Both the deposit and the settlement payment are applied for the acquisition of a single acquirable asset being the completed strata titled apartment. 
House built over two titles 
The trustee of an SMSF enters into an LRBA where the single acquirable asset is a house which is built across two titles. Subsequently the house is relocated so that it stands on only one of the titles. 
The arrangement ceases to satisfy the requirements of the LRBA provisions. The relocation of the house results in the asset under the arrangement no longer being a single object of property. Following the relocation there are two separate assets, the block of land with the house and a vacant block of land, that could be dealt with separately. If the borrowing is maintained the trustee of the SMSF will contravene subsection 67(1). 
The Self Managed Superannuation Funds Ruling SMSFR 2012/1 is available to be downloaded in full.
<a href="http://propertyobserver.com.au/ebooks/16-questions-self-managed-super-fund-trustees-should-ask-before-investing-in-property" target="_blank">For more on property investors and SMSF, download our free eBook.</a>
<a target="_blank" href="/news">For end-of-year tax tips for property investors, watch our free webinar.</a>
 
 
 
 
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Clarity for SMSF property investors as ATO defines ‘single acquirable asset’

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The Victorian branches of the Urban Development Institute of Australia (UDIA) and the Property Council of Australia (PCA) have welcomed plans to introduce a more transparent and standardised developer contribution system.
The contributions are levied on property developers and are used to pay for essential infrastructure such as roads, sewers, drains and utilities.
They can vary widely from council to council.
The PCA estimates that development charges levied on Melbourne developers as part of council development contribution plans (DCPs) increased about 26% over the past year
The reforms will be released by Victorian Planning Minister Matthew Guy tomorrow and will include a new fee structure and payment timeline determined by an independent committee.
They follow a year-long review of the contribution system.
The committee will shortly be appointed by the minister tasked with putting together the details of the new scheme.
Under the current scheme introduced in 2003 Victorian councils have individual and differing contribution plans.
The new system will feature five categories: community facilities, open space facilities, transport infrastructure, drainage and public land.
Levies will be set for six different categories of development these being greenfield, infill, regional, rural, residential and non-residential development.
Guy told the Australian Financial Review the new model would reduce red tape, improve transparency and provide certainty around the amounts developers must pay.
According to Tony De Domenico, executive director of the UDIA Victoria, getting the reforms right will “put Victoria ahead of the pack”.
“The new system will be a lot fairer because it will clearly set out what developers are responsible for and what should be a council’s responsibility,’’ he says.
Developers have been calling for a reform of the contributions system since 2010.
 
 
 
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New Victorian developer contribution system welcomed by industry bodies

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Apartment construction in Melbourne is likely to peak in 2013 with as many as 14,000 apartments being completed, according to forecasts by consulting and valuations firm Charter Keck Cramer (CKC). 
However, in 2014 the great spurt in the apartment construction, which kicked off in 2011, will at least halve and possibly fall as low as just 4,000 apartments, taking the market back to average annual rate achieved from 2000 to 2011, the firm says.
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Source: Charter Keck Cramer
In total, about 31,000 apartments are set to be completed or commence construction between now and 2014, with most of these to be built in the inner city.
Around 7,500 apartments will be built within 10 kilometres of the city, more than 4,400 in the middle to outer ring, and only 800 in the outer-growth areas.
Since 2010 apartment construction in Melbourne has risen steeply, with 5,000 constructed in 2010 and nearly 8,000 constructed in 2011 – compared with the annual average of just over 4,000. 
Most of this has been with a 2.5-kilometre radius of the CBD. 
About 9,000 apartments are under construction currently. 
According to 2013 estimates, if those projects that the firm assesses as “more likely” and “possible” go ahead, new apartment numbers will reach 14,000. 
Robert Papaleo, head of research at CKC, says up until 2015 there will be no shortage of apartments available in the market, but the question remains: “will there be enough owner-occupier demand”. 
“To date the product has been well received, but we now have a softer rental market and population growth is slowing,” he tells Property Observer. 
He says the big unknowns are whether Asian developers, which have accounted for about 20% of the market, will continue to target the Melbourne market. 
“If they can access funding offshore, there is no limitation to the number of apartments they could build,” he says. 
According to Papaleo, offshore banks are more willing to provide funding and are less aware of local conditions and carry out fewer checks.
The Manhattanisation of Melbourne began in 2010, when number of off-the-plan apartments reached 17,000 apartments, compared with a historical average to 2010 of about 6,300 apartments being marketed off the plan. 
The following year off-the-plan marketing of apartments fell somewhat, but there were still more than 12,500 apartments marketed to investors and owner-occupiers.
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Source: Charter Keck Cramer 
This week construction of Lend Lease’s 807 Bourke Street tower will begin. The boutique development featuring 21 apartments and four townhouses in Melbourne’s Docklands will be Australia’s first timber high-rise building – and the tallest of its kind in the world. 
In Southbank construction has just commenced on the 652-apartment Prima Pearl project being developed by the PDG Corporation and Schiavello. The project is split into two sections, accessed via separate lobbies, with Pearl starting from level 10 to level 35 and Prima from level 36 to level 66. 
Lower levels start from $351,000 for a one-bedroom apartment and $638,000 for a two-bedroom unit, rising up to $10 million for a top-level penthouse. More than 600 of the apartments have been sold to date.
The Luxton, a six-storey development on Chatham Street in Prahran that will contain 53 one- and two-bedroom apartments to be developed and constructed by Watpac Property, is currently being marketed. One-bedroom apartments start at $405,000.
Further out from the city, the Boom Property Group (BPG) is marketing its Belise development in Caroline Springs with plans for 35 residencies. Building is expected to begin in July and be completed in mid-2013. A further 101 apartments are planned for BPG’s Cascada development also in Caroline Springs as well as 74 apartments in Doreen, to the city’s north.
 
 
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Record number of Melbourne apartments to be completed in 2013 followed by decline in 2014: Charter Keck Kramer

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Westpac chief economist Bill Evans says the Reserve Bank could cut rates by 50 basis points over the next three months, taking the cash rate to a three-year-low of 3.25%. 
He bases this expectation on the deteriorating situation in Europe and “disturbing weakness” in sectors like retail, manufacturing, construction and tourism. 
In addition, growth expectations for the Australian economy are now tracking below trend, according to the annualised growth rate of the Westpac–Melbourne Institute Leading Index. 
The index indicates the likely pace of economic activity three to nine months into the future was 2.2% in March 2012, below its long-term trend of 2.9%. 
“That profile is consistent with Westpac’s forecast for growth in the Australian economy in 2012 of 3% which would mean that Australia had grown below trend for five consecutive years,” says Evans. 
The last time the cash rate was at 3.25% was in April 2009, when the RBA was curbing the effects of the GFC, beginning in November 2008 with a 75-basis-point cut. 
The lowest the cash rate has been since 1990 is 3% – the rate set by the RBA in October 2009. 
“We saw in December last year that the Reserve Bank was prepared to cut rates almost entirely due to its concerns around Europe and relative to December the risks around Europe are now decidedly more severe,” says Evans. 
“Back in December the bank assessed the Australian economy as growing around trend whereas now there is explicit recognition of the disturbing weakness in sectors such as retail; manufacturing; construction and tourism. 
“Policy settings have eased since December, but only from ‘mildly contractionary’ to ‘mildly stimulatory’. 
“Therefore there is a very strong case for further policy easing. The exact timing and extent of the easing is likely to be dictated by global events in the run up to the next meeting but the important point is that the official cash rate is very likely to be lower by at least 0.5% over the course of the next three months.”
 
 
 
 
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Cash rate could fall to 3.25% by August: Westpac’s Bill Evans

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

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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."

[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.

&nbsp;

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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."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

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

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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