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House prices and home sales in Silicon Valley, the technology hub south of San Francisco, increased strongly in the months leading up to the floating of Facebook shares on the Nasdaq index. 
In the city of Palo Alto, where Facebook has its headquarters, the median price of single-family house has risen 9% in the past year to $1.28 million, according to the Zillow Home Values Index – the biggest jump since 2008.
Click to enlarge
<a href="/images/stories/zillow.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/zillowthumb.gif"></a>
 
This median price equates to about 34,000 Facebook shares at the current price of $38 per share.
According to Zillow, 85% of homes in Palo Alto increased in value in March, while only 11% decreased in value.
Earlier this year, before the listing of Facebook shares, founder Mark Zuckerberg paid about $7 million for 465-square-metre, seven-bedroom house in an affluent neighbourhood of Palo Alto. 
The prospective listing of professional networking site LinkedIn has also helped drive up property prices around its Mountain View headquarters, just south of Palo Alto.
LinkedIn’s plans to list on the New York Stock Exchange (NYSE) were announced in January, with house prices in Mountain View up 5.1% year-on-year to a median of $741,000.
Mountain View is also the headquarters of Google.
Figures compiled by US real estate listings website Sawbuck show that two months prior to the listing of Facebook, there were 1,531 home sales, compared with just 840 in the two months before Facebook announced its plans to go public.
The surge in prices in Silicon Valley is in sharp contrast to the overall performance in the US housing market.
According to the benchmark S&amp;P/Case-Shiller index of property values, house prices fell 3.6% percent in March year-on-year to their lowest level since 2003.
US house prices are down 33% from their peak in 2006.
According to Kenneth Rosen, chairman of Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, the boom in Silicon Valley house prices could continue into 2013.
“It’s just the beginning of the story, and I suspect we’ll see an explosion in the next couple years,” Rosen told Bloomberg.
“You’ve got young people with real money, and it’s not surprising they want to have a house,” he added.
According to Bloomberg, around 300 companies filed IPOs last year with 10% of those in California.
Venture capitalists invested almost $23.3 billion in Silicon Valley start-ups last year, according to estimates from the National Venture Capital Association show.
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lschlesinger-FZcF9M3vE6

Silicon Valley property market ‘likes’ Facebook IPO as local real estate prices rise

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A new office trust has been launched by Charter Hall giving high-net-worth investors and self-managed super funds (SMSFs) the opportunity to invest in a tax-advantageous A-grade Perth CBD office building, with yields of 9% promised.
The trust, known as the Charter Hall Direct 144 Stirling Street Trust, is made up of a single asset, the Hatch Building at 144 Stirling Street on the northern fringe of the Perth CBD.
The property is a recently constructed 11,0000-square-metre A-grade office building on a corner site with four street frontages and parking for 250 cars.
Engineering and consulting group Hatch is the key tenant and recently reviewed its lease for a further 10 years.
The trust aims to provide investors with sustainable and stable, tax-advantaged income and the potential for capital growth through investment in the Hatch building.
Charter Hall Direct is forecasting a first year income yield of 8.85%, growing to over 9% during the life of the Trust.
According to trust manager Charter Hall Direct Property, the unlisted property funds arm of the ASX-listed Charter Hall group, the trust has been launched in response to growing demand for investment opportunities in the Perth CBD.
Head of Charter Hall Direct Property Richard Stacker says advisers and investors are looking for alternative investments that have a return profile that is less correlated to equity markets and other asset classes.
“The growing spread between term deposits and direct property, which currently sit at around 3% to 4% after the recent lowering of interest rates, means SMSFs are very attracted to the yields on offer in direct property.”
Stacker says investors are looking to commercial property to enhance their overall portfolio returns. "We are currently in one of the best buying cycles since the mid-1990s and investors who understand or are being advised by people who understand property cycles are taking full advantage of this. "Investors need to be selective on the markets and property sectors they invest in. For example, in the resource based states commercial property markets are expected to outperform given the current climate and strong employment growth prospects.
“The new trust is one opportunity for retail investors and SMSFs to benefit from the resources boom, employment growth in Western Australia and what we expect will be strong continued demand for high quality office space over the medium term," he says. Stacker says 80% of Charter Hall Direct Property's equity flows are coming from SMSF investors and it is a segment he expects to see more growth from over the coming years. Minimum investment in the trust is $50,000. For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
 
 
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New office trust to provide ‘tax-advantaged’ income and yields of 9% to investors and SMSFs

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Australia is not suffering from a nationwide undersupply of housing, according to Rob Sindel, chief executive of building products group CSR.
"I think that some of the forecasts that we've previously seen around 180,000 and 200,000 housing starts a year being underlying demand, I don't believe those because they were predicated on the basis of household formations, the number of people living in a house shrinking. That hasn't come to pass. We've actually seen that number start to turn the other way, " Sindel told the ABC’s Inside Business program.
“[The number of people living in a house has] started to go up after falling for a number of years,” Sindel said.
“What you've got is you've got shortages in certain places. You've got shortages in NSW, you've got shortages in south-east Queensland. You've got a shortage in Western Australia.  “You don't have a shortage in Victoria. And it's often driven by land shortages, it's driven by a number of factors. So I think it's very hard to categorise the Australian market as just one market. There is a series of undermarkets,” he says.
Sindel warns that the current dip in housing construction is looking like being a much longer affair than dips experienced during the 1990s, which he says “were six or eight months then you could see your way through the other side”. “This time I think we had the dip, we had the stimulus, and now we've dipped again on the basis- and I think people are very fearful about what's happening in Europe and we've got a lot more information through the media.
“So people are putting off those big decisions like buying a house and so you're seeing a much, much more drawn-out recovery,” he says.
CSR estimates that total housing starts in Australia will fall to about 140,000 in the year to March 2013, down from the 148,300 in 2012.
Last week CSR reported that net profit fell to $76.3 million in the year to March 31 from $503.4 million the previous year.
Trading revenue fell to $1.8 billion from $1.9 billion.
"Excluding the global financial crisis and the introduction of the GST, this represents the lowest level of housing activity in the past 15 years," CSR said in a statement.
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No Australia-wide housing shortage: CSR’s Ross Sindel

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International brands like Zara and Apple have helped drive shoppers back to Westfield shopping centres and drive up sales among mini-major retail tenants, according to the latest quarterly update from the shopping centre group.
Turnover in the mini-major category, which includes Zara and Apple along with the likes of JB Hi-Fi, Dick Smith and Priceline, was up 2.7% for the year to March and 4.3% for the first three months of 2012, according to March quarter results filed by Westfield Retail Trust (WRT), the spin-off entity that manages the $13 billion portfolio of Australian and New Zealand shopping centres.
Over the quarter sales among mini-majors grew at nearly four times the rate of total speciality sales across Westfield’s Australian portfolio (1.1%) and more than double the 1.2% growth achieved over the year to March.
“Retailers such as Apple and Zara demonstrate the success that can be enjoyed through an exciting and engaging retail experience. These mini-majors are proving to be great destinational retailers,” said Westfield Retail Trust chairman Richard Warburton in his address to shareholders.
Warburton says Westfield centres are continuing to “evolve and adapt to the environment and new retail trends”. 
<img src="/images/stories/westfieldpittst.jpg">
“Innovative dining precincts, expanded retail services, new market entrants and larger-format stores are examples of this,” he adds. 
Zara opened its 1,800-square-metre store in Westfield Sydney on Pitt Street mall in April last year – its first store in Australia.
A new Zara store is planned at Westfield Doncaster for later this year.
There are Apple stores in Westfield Doncaster and Westfield Southland in Melbourne, Westfield Chermside in Brisbane and Westfield Hornsby in Sydney.
According to the quarterly results, cinema tenants are also performing much more strongly, with sales rising 9.3% for the first quarter of 2012 to be up 4% for the 12 months to March 2012, <a target="_blank" href="https://www.propertyobserver.com.au/news/westfield-cinemas-struggling-perhaps-due-to-pricey-popcorn/2011081751194">reversing a trend of declining sales</a> reported last year.
The decline in department store sales appears to be bottoming out, with sales at the likes of Myer and David Jones down 0.2% for the quarter compared with a 5.2% decline in turnover for the year to March.
Discount department store sales (Kmart, Target, Big W) fell 2.5% over the quarter, with jewellery stores (3.7%) and footwear retailers (1.8%) also performing poorly.
Click to enlarge
<a href="/images/stories/westfieldmay21.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/westfieldmay21thumb.gif"></a>
 
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The impact of international stores in driving retail sales was noted recently by CBRE retail services associate director Max Cookes.
Cookes says international retailers have helped Melbourne retain its mantle as one of the strongest-performing retail markets in the country. 
“The recent level of enquiry we have received from international retailers has been stronger than this time last year,” says Cookes.
“Over the past 18 months, we have successfully reached agreements with Zara, Topshop, Paul Smith and Thomas Pink, who have all opened flagship locations in Melbourne.”
According to the WRT update, speciality Westfield rents increased 3.1% for the 12 months to March 31.
Speciality sales were strongest in Westfield’s Victoria shopping centres rising over the first three months of the year 3.1% to be up 4% for the 12 months to March 2012 compared with the previous 12-month period.
In comparison NSW speciality sales were up just 0.3% and down 0.6% for the year.
The second strongest performing state was WA, with Westfield centres recording a 2% rise in speciality sales for the quarter, accelerating from just 0.6% growth for the 12 months.
Speciality retail sales generate over $9,700 per square metre in Australia, and over NZ$8,200 per square metre in New Zealand with the portfolio remaining above ensures continued demand for quality retail space with the portfolio remaining above 99.5% leased.
In February, the trust reported comparable net operating income growth up 4.3% in the year to December 2011 attributed to “the strength, quality and resilience of the property portfolio”. 
Over 2011 Westfield signed over 2,800 lease deals covering more than 375,000 square metres of retail space. 
Westfield Retail Trust managing director Domenic Panaccio says Westfield Sydney sales continue to grow strongly across all categories, with the luxury precinct and food retail performing well. 
“Customer traffic also continues to grow. The Westfield Sydney and Sydney Central Plaza precinct is the most productive centre in the trust’s portfolio from a specialty sales perspective and we are extremely pleased with our flagship asset,” he says. 
Panaccio says the Westfield Sydney project is now complete, with the $1.34 billion Westfield Sydney Facility repaid. 
The trust also reconfirmed that distributable earnings and distribution in 2012 are forecast to be 18.75¢ per stapled security.
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Zara, Apple and reviving cinemas among best-performing Westfield tenants

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Newcastle pubs have proved popular with Sydney investors, with both Newcastle offerings selling at a yield of 7.9% as part of an auction of seven ALH pubs in Melbourne on Friday.
Although the auction was well attended, there were few bidders at the auction at Melbourne’s Crown Casino, with four of the pubs passed in despite the best efforts of auctioneer David Scholes and the placing of a number of vendor bids.
Bidders appeared intent on securing bargains and yields of around 9%, with initial bidding on some of the pubs starting at well below the price suggested by Scholes on behalf of vendors.
<img src="/images/stories/dubbotav.jpg">
At one point, with bidders unwilling to meet the $12 million to $13 million starting price for the biggest property in the portfolio, the 4,100-square-metre Macquarie Inn Hotel and Dan Murphy’s in Dubbo (pictured above). Scholes tried to whip up interest by reminding them that fugitive Malcolm Naden was no longer hiding out at the nearby White Plains zoo.
“You can rest easy. He’s been captured,” Scholes said.
All seven pubs were auction with new 20-year leases (with five renewal options of 10 years each) to pub operator ALH and are 75% owned by Woolworths and 25% owned by private hotelier the Bruce Mathiesen Group.
<img src="/images/stories/doncastertav.jpg">
Despite pre-auction interest, the prized asset, the Cherry Hill Tavern Hotel and BWS bottle shop (pictured above) sitting on a 9,100-square-metre site near The Pines Shopping Centre in the affluent Melbourne eastern suburb of Doncaster, failed to sell.
Agents expect the 1,900-square-metre building, which includes an alfresco dining room and TAB gaming bar a well as a “thriving BWS bottle shop”, to sell post-auction
<img src="/images/stories/jewells.jpg">
The Jewells Tavern and BWS (pictured above) on the corner of Gradburn Parade and Gurdie Street in Newcastle was the only property to meet the reserve and sell at auction.
It sold for $5.821 million, just above the vendor bid of $5.82 million following a bidding contest between the eventual Sydney winner and a Melbourne buyer.
Having undergone a recent $865,000 refurbishment, the 1,000-square-metre brings in net rent of $460,000 per annum and sits on a 5,700-square-metre site adjacent to the Jewells Town Plaza Shopping Centre.
 
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<img src="/images/stories/charlestown.jpg">
The Mattara Hotel in Charlestown in Newcastle (pictured above), with net rent of $415,000 per annum, sold prior to auction for $5.25 million on a 7.9% yield.
<img src="/images/stories/caboolture1.jpg">
The Club Tavern and BWS on Beerburrum Road in Caboolture (pictured above), with net rent of $600,000 per annum and situated 41 kilometres north of Brisbane, sold post-auction on a yield of 7.9%.
Also selling post-auction was the Granada Hotel and BWS in Berriedale in Tasmania. There were four bidders on the property, with the winning bidder ($3.3 million) having the first right to negotiate with the vendor.
The pub eventually sold for close to the winning bid price on a yield of around 8%. It is located directly opposite from the $80 million MONA museum, the top tourist attraction in Tasmania.
The Westower Tavern, BWS and Dan Murphy’s on the Pacific Highway in Ballina, with annual net rent of $730,000 and across from the Big Prawn redevelopment, was passed in with a series of low bids not accepted.  The vendor is seeking around $10 million for the property, which measures 2,300 square metres.
The seven properties were marketed jointly by Burgess Rawson agents Billy Holderhead, Raoul Holderhead, Simon Staddon and Pat Kelly alongside Scott Callow, Daniel Dragicevich, Joel Fisher and Craig Harley from CBRE Hotels.
For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
 
 
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Newcastle ALH pubs sell to Sydney investors on 7.9% yields but Doncaster’s Cherry Hill tavern passed in

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Four St Hilliers Construction sites will reopen today, creditors of the failed business have been advised by administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group. 
The four sites, which take the total number of sites reopened since the company went into voluntary administration last week to eight, are all training facilities that are being constructed for the Department of Defence and have a combined value of $170 million.
They are:
<ul>
<li>Training facility at Watsonia, Victoria </li>
<li>Wide Bay Training Facility, Tin Can Bay, Queensland </li>
<li>Greenbank Training Facility, Greenbank, Queensland </li>
<li>Maintenance Training Facility, Bandiana, Victoria </li>
</ul>
In a statement the administrators and St Hilliers executive chairman Tim Casey and his team said they were optimistic that the 13 NSW social housing projects would reopen next week following a “constructive meeting with NSW Public Works on Friday”.
A creditors’ meeting will be held in Sydney on Friday.
Contractors on the defence sites are still owed money by St Hilliers, with ABC Wide Bay reporting that a Gympie electrical contractor PHE is owed $1 million for work on the defence force training base at Tin Can Bay. 
PHE manager Geoff Lobegeier says PHE will lodge a claim for the money but is worried the bill will not be paid. 
“I will do my best to pay my subcontractors because I've got a contract with them and ... that will leave us short ... so a business can only survive on money flow, so that's a huge concern," he told the ABC. 
Lobegeier is demanding the federal government step in and pay him the money. 
In the statement the administrators said they were in “active dialogue with all clients regarding all St Hilliers Construction Pty Ltd sites with the objective of reopening all remaining sites in NSW, Queensland, ACT and Victoria as soon as possible”. 
“The administrator and the company will continue to keep all stakeholders informed of progress,” the statement says.
 
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Four St Hilliers sites being built for Department of Defence to reopen today

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Dixon Advisory’s US Masters Residential Property Fund, the only listed Australian property trust with a primary strategy of investing in US residential property, is seeking to double in size ahead of its July listing on the Australian Stock Exchange. 
<a href="https://www.propertyobserver.com.au/overseas/dixon-advisorys-us-portfolio-up-to-101-properties-as-it-moves-further-into-new-jersey-suburbs/2012022153486" target="_blank">The fund has to date bought over 130 rental properties in New Jersey</a> and raised over $100 million from local investors. 
It is now seeking to raise a further US$50 million ($50.6 million) from Australian investor with the right to receive oversubscriptions for a further US$50 million. 
The new offer closes on June 12 ahead of a proposed July 20 ASX float. 
The fund is currently listed on the small-cap National Stock Exchange (NSX) under the code URF with a last traded share price of $1.60 giving it a market capitalisation of $99.8 million. 
The current share price is trading at a premium to its May 11 unaudited net asset value of $1.56 per unit, but below its listing price of $1.70 per unit. 
Fund investment manager Alan Dixon says investment opportunities in the US market are “highly attractive,… especially at a time when property prices are at cyclical lows, rental demand remains strong and rents are increasing. 
“This is particularly the case in the New York metropolitan area, where the fund is initially targeting with a specific focus in Hudson County, New Jersey.” 
Earlier in the month, the fund announced it was investing in a joint venture with Urban American, a US real estate investment firm specialising in multi-family properties in the New York metropolitan area, to acquire a portfolio of 13 specific multi-dwelling apartment complexes with 398 residential units in Hudson County, New Jersey, with the funding contributing US$10.2 million of the acquisition cost of US$38 million. 
Since launching, the fund has targeting the New York metropolitan region and has bought 132 properties in Hudson County, New Jersey worth $27.5 million with yields ranging from 5.7% to 10.3%. 
It has conditional acceptances on a further 99 properties worth a combined $23 million. 
Combining this joint venture with conditional and unconditional acceptances on detached houses in Hudson County takes its total acquisition costs to US$76.1 million. 
The fund has bought free-standing houses for an average of US$219,000 and units for an average of US$95,000. 
The properties are all located in Hudson County within close proximity to public transportation networks providing easy access to Manhattan and various public amenities. 
In its presentation to shareholders said valuations remained very depressed “but improving”, the mortgage market remained broken “but healing slowly” and rental demand was “robust” with “growing rents, low vacancy, quality applicants”. 
Housing affordability is at record highs but applicants can’t get mortgages, the fund says. 
The fund expects to pay semi-annual distributions to unit holders and of a minimum 10¢ per unit for the calendar year ending December 31, 2012.
 
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Dixon Advisory’s US property fund seeking extra $100 million ahead of ASX listing 

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The first creditors meeting for the collapsed construction arm of St Hilliers has been set for May 25 as accusations continue to fly over decisions to award government contracts to the Sydney-based property and construction group just months before it collapsed.
A spokesperson for administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group says the meeting will be held in Sydney but could not provide details about the number of creditors or how much they are owed.
Creditors will include hundreds of building contractors, many of which are small business operators who have worked on St Hilliers projects around the country and have not been paid for their work.
Yesterday the administrators met with major clients, but smaller contractors are yet to receive any reassurances.
At the same time the NSW’s Barry O’Farrell government continues to come under heavy fire for awarding tenders to St Hilliers to take over 13 public housing projects in Wollongong, the Hunter, Shoalhaven and Coffs Harbour worth $25 million just two months ago.
St Hilliers won the tender to complete the projects following the collapse of previous contractor, Sydney-based building company Perle, in February last year.
Embattled NSW Finance Minister Greg Pearce says the federal government should investigate the collapse of the construction business and has accused St Hilliers of using the voluntary administration as “cynical attempt” to avoid its debts.
However, Pearce has in turn been accused of passing the buck after approving St Hilliers as the winning bidder for the public housing projects.
Pearce has defended the appointment of St Hilliers and says the NSW government performed two financial assessments of the company before it was contracted to complete the NSW projects.
He claims that “no one at all raised with me any issue about St Hilliers’ financial position”.
Among those caught out by the collapse is Lake Macquarie landscaper Matt Corfield, who worked on a public housing project in Teralba in the Hunter and is owed more than $6,000 by St Hilliers and a further $10,000 from Perle.
Corfield told the Newcastle Herald he had received “an iron-clad guarantee” from St Hilliers he would be paid because “there was no way the government could afford the embarrassment of a second collapse”.
"Now this has happened. They owe me $6,732. It was supposed to be a stimulus job, but it’s reverse stimulus because it could put us out of business.”
Corfield has three full-time employees, a full-time apprentice and a casual worker, who he says could all end up on the dole as a result of the collapse.
The Coffs Coast Advocate reports that Coffs Harbour tradesmen working on a public housing project are owed $660,000 and like Corfield have been caught up in the second collapse of a government-appointed building contractor on the same project.
 
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Yesterday, administrators announced that <a target="_blank" href="https://www.propertyobserver.com.au/news/anxious-wait-for-creditors-and-contractors-as-30-st-hilliers-projects-worth-%24300-million-stuck-in-limbo/2012051754737">four St Hilliers projects</a> – two commercial projects in Sydney and mining projects for BHP and Xstrata – had reopened but as many 26 remain closed leaving up to 1,000 contractors out of work and not yet paid.
The four projects have a combined value of $31 million but still leave the value of stalled projects at between $300 million to $500 million based on different media estimates.
It’s difficult to calculate the value of current St Hilliers projects, as all links on the company’s website lead to the administrators’ statement – archived press releases are inaccessible.
In a strange coincidence Greg Pearce’s website <a href="https://www.gregpearce.com.au/" target="_blank">https://www.gregpearce.com.au</a> is also not working and automatically redirects to <a target="_blank" href="https://www.myelectorate.com.au/">https://www.myelectorate.com.au/</a>.
Yesterday the administrators, Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recover Group, along with St Hilliers executive chairman Tim Casey and his team met major clients.
The Department of Defence has $173 million of work with St Hilliers.
A spokesman said it was investigating options with the administrators that would deliver the “best outcomes for all parties as soon as possible”.
But the cause of the problem, the need for an additional $150 million in funding for the Ararat Prison extension, is unresolved.
Victorian Corrections Minister Andrew McIntosh says the larger players in the project’s consortium, including Commonwealth Bank and Bilfinger Berger, should deliver the Ararat Prison and pay all contractors and sub-contractors.
“It is incumbent on them to deliver on their contractual obligations,” he said on a visit to Ararat.
He said the government was committed to the project but played down any government intervention.
“The best use of taxpayers’ money is to enforce the terms of that contract,” he said. “The most important thing is we desperately need the 350 beds as soon as possible.”
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St Hilliers creditors’ meeting set for May 25 as hundreds of contractors still await payment on projects

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Newcastle-based lender the Greater Building Society, perhaps most famous for getting Jerry Seinfeld to do its advertising, can now also claim to have the lowest three-year fixed home loan rate in Australia.
The Greater has reduced its three-year fixed Ultimate (packaged) Home Loan by 15 basis points to 5.79% per annum. Product manager David Bryde believes this is the lowest three-year home loan rate in Australia.
Mortgage comparison website RateCity.com.au had listed IMB Building Society as having the lowest three-year fixed-rate loan at 5.89%, but this offer appears no longer available, with the IMB website showing an advertised three-year fixed rate of 5.99%.
This 5.99% three-year fixed-rate also offered by the Commonwealth Bank, ING Direct, ME Bank, CUA, Aussie and Citibank.
The Greater has also cut its credit card rate by 0.49%, bringing it down to a starting rate 10.25% from June 1.
“The Greater continues to offer Australian consumers with better value home loans and credit cards than the major banks as well as outstanding service,” says Bryde.
“Alternatives to the major banks are already here and it is already easier to switch financial institutions than people think,” he adds.
The Greater Building Society is one of Australia’s largest building societies with almost 250,000 customers across NSW and South East Queensland with 66 branches.
 
 
 
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First Jerry Seinfeld, now Greater Building Society claims cheapest three-year fixed-rate loan

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Property investors who take up an offer from HSBC Bank of a discounted fixed rate mortgage product if they pay the first year's interest on the loan upfront could cut their end-of-year tax bill by thousands of dollars, while making a small saving on their mortgage repayments.
HSBC has cut its fixed-rate mortgage products by 10 basis points and is offering an additional 10-basis-point discount for investors that who take up the “interest-in-advance” offering.
The rate cut means the bank’s three-year fixed-rate product has dropped to 6.09% but will drop to 5.99% for those investors who take up the interest-in-advance offer.
Paying the interest upfront will allow investors to claim a tax deduction for the interest expense earlier.
HSBC has calculated that investors taking out a $300,000 mortgage on a three-year fixed rate term would have to pay $17,970 interest in advance for the full year with mortgage repayments reduced by $300 over this period.
According to accounting firm Chan &amp; Naylor, an investor on a taxable income of $100,000 would be able to reduce his tax bill by more than $7,000 (from $26,700 to $19,691.70)  by paying the $19,691.70 before the end of the current tax year.


Alice Del Vecchio, head of mortgages for HSBC Bank Australia, says paying interest in advance on a fixed-rate loan allows customers to enhance the tax effectiveness of their property investment. 
“With tax season approaching, many of our customers will be considering various investment strategies, so offers like these come at an opportune time,” she says.
The HSBC fixed-rate cut comes as ABS March housing finance data revealed that fixed-rate mortgage demand climbed to its highest level since April 2008, with nearly 15% of borrowers opting for a fixed-rate product during the month.
Please note this article does not constitute tax advice and the numbers quoted are for illustrative purposes only.
Here’s a guide to the range of headline three-year fixed rate products currently on offer:
5.79%
The three-year fixed-rate offering of Greater Building Society
5.99%
The three-year fixed-rate offering of Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society.
6.03%
The three-year fixed-rate offering of LJ Hooker Finance
6.04%
The three-year fixed-rate offering of ANZ
6.09%
The three-year fixed-rate offering of HSBC Bank Australia and NAB, St.George, Bank of Melbourne, BankSA
6.13%
The three-year fixed-rate offering of Suncorp
6.15%
The three-year fixed-rate offering of Myrate.com.au
6.19%
The three-year fixed-rate offering of Westpac and ANZ
6.29%
The three-year fixed-rate offering of Heritage Bank and Homeloans Ltd
 
6.33%
The three-year fixed-rate offering of Bankwest
6.34%
The three-year fixed-rate offering of Bendigo Bank
6.37%
The three-year fixed-rate offering of Yellow Brick Road
6.39%
The three-year fixed-rate offering of bankmecu
6.46%
The three-year fixed-rate offering of Resi Mortgages
 
 
 
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Tax savings for property investors who take up HSBC interest upfront offer on fixed-rate mortgages

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

Joel Robinson

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

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

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

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

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

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