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The Australian building and construction industry has been plunged into deeper crisis with the construction arm of St Hilliers being placed into voluntary administration due to funding issues relating to the Ararat prison project.
An associated company, St Hilliers Ararat Pty Ltd, part of a consortium contracted to undertake the $350 million expansion of the Ararat Prison in central Victoria, has been placed in liquidation.
A statement on the St Hillers website says that Michael Hird of Moore Stephens Sydney Corporate Recovery Group has been appointed as voluntary administrator.
The construction arm has been placed in administration “due to exposure under guarantees for debts of St Hilliers Ararat Pty Ltd relating to the Ararat Prison project in Victoria”.
“Negotiations over several months between the Ararat Prison equity investors and its bankers in conjunction with the state of Victoria have failed to reach a definitive agreement for additional funding of approximately $150 million.
“The St Hilliers Group could not allow further debts to be incurred without adequate funding. As a consequence, the group determined that the only prudent course of action was to cease work on the Ararat project and place St Hilliers Construction Pty Ltd into voluntary administration.”
St Hilliers Group executive chairman Tim Casey described the decision to place the construction arm in administration as “very regrettable”.
“We have over a number of months explored and exhausted all possible avenues to recapitalise the construction business and find a solution to the significant cost and time overruns on the Ararat project.
“Unfortunately a solution was not possible under the current regime.
“We will now work actively and constructively with the administrator and all stakeholders to continue all viable projects and to find a way to restructure the construction business going forward.
“For the rest of the St Hilliers Group it remains business as usual,” Casey says.
<img src="/images/stories/sthilliers2.jpg">
The construction arm employs about 360 people, and the group has annual turnover of around $700 million with a head office in Sydney as well as offices in Melbourne, Canberra, and Brisbane.
Its collapse adds to the growing number of building companies that have collapsed recently.
<a href="https://www.smartcompany.com.au/construction-and-engineering/048778-suburban-tradies-collapse-as-construction-and-building-industries-suffer-through-2012">According to a SmartCompany review of insolvency appointments in March</a>, more than 80 building and construction firms entered administration, liquidation or were hit by a winding-up notice over the previous month on the east coast alone.
High-profile collapses have included <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012">century-old building firm Kell &amp; Rigby</a>, with creditors voting in April to liquidate the business. Other collapses include Royal &amp; Taricon Construction, Amorin Constructions, BQL Constructions, Bina Constructions, Simtom Constructions, Australian Property and Construction Pty Ltd.
<img src="/images/stories/araratprison.jpg">
The $400 m Ararat prison project (artist's impressions above and below) is a joint venture with New Zealand firm Hawkins and is being built to address a shortage of prison facilities in Victoria and was commissioned by the Brumby government in 2010.
<img src="/images/stories/araratprison2.jpg">
The project is about 18 months behind schedule, with unions claiming that subcontractors are owed more than $10 million. Last week the consortium told subcontractors there was no money to pay them.
Only 12 workers turned up to work on the project last week out of 250.
Earlier this month concerns were reported about St Hilliers being able to complete the prison project, with construction union Victorian secretary Bill Oliver writing to the company to express concerns about non-payment of suppliers and deterioration of health and safety on other St Hilliers sites.
The administration does not involve St Hilliers Property Pty Ltd, the entity responsible for the group’s activities in funds management, property development and asset management with independent custody arrangements in place.
According to a statement posted on the St Hilliers website, the administrators will be seeking to complete viable projects once they assess the position of each of the projects.
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St Hilliers construction arm placed in voluntary administration

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Treasury secretary Martin Parkinson has rejected criticisms that the government’s spending cuts and taxation policies announced in the budget (and aimed at generating a surplus) are undermining the efforts of the RBA to stimulate spending and borrowing following the 0.5% rate cut announced on May 1.
Speaking to economists in Sydney today, Parkinson said the current directions of monetary and fiscal policy were not at cross purposes but simply reflected “a return to their normal roles following an extreme event.”
“The primary objective of fiscal policy, outside of extreme events like the GFC, is to maintain the budget in a sustainable position from a medium-term perspective, while monetary policy should play the primary role in managing demand to keep the economy stable,’’ Parkinson said.
“In an economy with unemployment forecast to be not far from reasonable estimates of its lowest sustainable rate, and commodity prices remaining near historical highs, it is appropriate that the budget return to surplus to remain consistent with the medium-term fiscal objective."
Last week, economists said returning the budget to surplus could dampen domestic growth.
Credit Suisse strategists Damien Boey and Atul Lele suggested fiscal and monetary policy were working against one another. “In principle, the budget could bring the economy to the brink of recession, but for the timely intervention of the RBA,’’ they said.
Releasing the federal budget last week, Wayne Swan said returning the budget to surplus would ensure the Reserve Bank “continues to have the flexibility for further interest rate cuts if it thinks that's necessary”.
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Government fiscal policies not undermining rate cuts: Treasury's Martin Parkinson

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Minutes released today from the RBA’s May 1 monetary policy meeting show that the continued weak housing, construction and mortgage conditions were factors in the bank cutting the cash rate by 50 basis points, though the pace of house price decline may be slowing.
However, Westpac chief economist Bill Evans says the minutes provide no guidance "to suggest either that a cut can be expected next month or that the board, having cut by a larger than expected amount is prepared to wait and assess the impact over a few months before moving again".  "Our current forecast is for rates to bottom out at 3.25% with cuts of 25bps in both July and September. However, the specific timing of these moves and whether the Bank eventually decides to go a little lower is most uncertain with three weeks between now and the June Board meeting and in particular global developments highly volatile," he says.
The May 1 minutes note that “members were briefed on the continued weakness in the housing market generally and residential building activity in particular”.
The minutes also note that “demand for housing finance had eased in the past few months and recent data suggested that dwelling prices had continued to decline, although there were tentative signs that the pace of decline had been more gradual overall in recent months”
“Despite dwelling prices declining relative to incomes and rises in rental yields, forward-looking indicators implied little prospect of an imminent recovery in housing construction.
“Information from liaison suggested that households were unwilling to commit to contracts for new dwellings because of concerns about job security and declining dwelling prices,” say the May minutes.
The weakness in the housing market was noted in both the April and March minutes after the Reserve Bank reported in February that “there were signs of [house price] stabilisation in some major cities around the end of the year”.
In April the RBA noted “soft overall conditions in the housing sector”.
In March, the RBA said the “housing market remained soft, with auction clearance rates in February broadly unchanged from late 2011.
“Housing credit continued to grow at a slower rate than nominal income.”
 
 
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'Continued weakness’ in housing influenced May rate cut decision but little guidance from RBA on future rate cuts

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The rate of construction of Melbourne apartment projects is expected to slow due to projects taking longer to transition from marketing to construction, according to the latest research by real estate group Oliver Hume.
The group also forecasts the number of high-rise building approvals to halve over 2011-12.
According to Oliver Hume, the high number of active projects in part suggests a softening in the sector, “as absorption rates slow with projects taking longer to move to construction”
March quarter figures in the Melbourne Apartment Market report show that the number of apartment projects being developed in the metropolitan region has fallen below 300 for the fourth successive quarter.
Although there are fewer active projects, the higher number of apartments in each project expected to be fully developed could mean more units being marketed off-the-plan than in the previous corresponding quarter.
In total there were 295 active projects in the March quarter (the highest since the June quarter 2011), which if fully developed ("and more will than will not") will deliver around 40,100 apartments: compared with around 321 projects and 37,230 apartments in the corresponding quarter 12 months ago.
Of these 40,100 apartments, more than half – 22,000 – are currently under construction or already completed.
Five local government areas – Boroondara, Melbourne, Port Phillip, Stonnington and Yarra – contain more than 55% of all metropolitan Melbourne apartment projects, compared with 80% of all apartment projects in 2008.
Over the quarter a total of 35 new projects were released, injecting close to 3,000 apartments into the pipeline. 
During the previous quarter there were 36 new projects released, containing approximately 3,030 apartments. 
The most active market is the City of Melbourne, with 17,650 apartments, followed by Stonnington and Yarra. Boroondara and Port Phillip make up the top five.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/oh.gif"><img src="/images/stories/ohthumb.gif"></a>
According to Oliver Hume, the median one- and two-bedroom entry prices for apartments are $366,750 and $502,000 respectively, with the price difference between one- and two-bedroom apartments continuing to drop. The difference is now only $135,500, down from around $151,000 six months ago.
Since 2008, the entry-level price of a one-bedroom apartment in metropolitan Melbourne has risen at an average rate of 2.4% a year, from $335,000 to $366,500. 
The entry-level price of a two-bedroom apartment has risen by 2.9% a year, from $450,000 to $520,000. 
The report found that only one in every five new projects contained some form of community facilities or amenities. 
Across all new releases, the median entry living area of both one and two-bedroom apartments is 44 and 64 square metres respectively. 
According to Oliver Hume, high-rise building approvals in Melbourne are expected to halve over 2011-12 compared with a year ago.
The real estate group says high-rise approvals will slip back to around 17% of all approvals, comprising a total of around 8,000 approvals. This is down from some 15,000 in 2010-11 and about the same as in 2009-10.
High-rise apartment approvals in Victoria peaked in 2010-11 to just over 60% of all multi-unit dwelling approvals and 41% of total approvals, with most of these developments occurring around the Melbourne CBD.
Andrew Perkins, national head of research at Oliver Hume, expects lower rates of approval for the rest of the year following the largest-ever spike in Melbourne apartment developments.
The drop in high-rise building approvals comes alongside an overall dip in multi-unit approvals with Oliver Hume forecasting multi-unit approvals in 2011-12 to slip back to 15,900 or 35% of all dwelling approvals compared to a dwelling approval peak of 24,400 in 2011-12.
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Melbourne high-rise approvals to halve compared with last year as construction slows: Oliver Hume

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Ahead of an expected turnaround in the Brisbane market, John McGrath will extend his real estate business into the Queensland capital city, with five new offices set to open over the next 12 months.
A McGrath Estate Agents company-owned office will open in the inner-Brisbane suburb of Paddington on May 21, followed by another four franchised Brisbane offices over the next 12 months.
Currently McGrath has offices at Surfers Paradise and Palm Beach in Queensland, plus two in the ACT and about 40 in NSW.
A fourth Queensland office will open in Toowoomba next month to service regional and outer Brisbane areas.
McGrath’s chief executive John McGrath says the expansion into Brisbane had been planned for two years, with the decision contingent on finding the right location and team.
“I firmly believe that the Brisbane real estate market is trending upwards,” he says. “The past few years have been tough but there is plenty of evidence that a healthy recovery is underway.
“The time now feels right to make our move into Brisbane. There is a new State government, the financial benefits of the resource boom are filtering through to the commercial sector and the impacts of the Global Financial Crisis and floods are beginning to recede.
In November <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/mcgrath-expands-from-outer-to-inner-canberra/2011111652399">John McGrath announced plans to open two new offices in Canberra</a>, with branches in Dickson and Woden.
It entered the ACT market in 2010 with an office in Gungahlin in north ACT.
However McGrath has yet to establish a foothold in the Victorian market, with no agents or real estate branches in Melbourne or other locations.
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McGrath Estate Agents to expand into Brisbane market

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Demand for fixed-rate mortgages soared to a four-year high in March as customers took advantage of an extremely competitive market and low fixed rates on offer.
Analysis of ABS housing finance data by CommSec shows that nearly 15% of home loans taken out in March were on fixed-rate terms, the highest proportion since April 2008, when fixed rate mortgages accounted for 19% of all home loan commitments.
CommSec chief economist Craig James says “home loan buyers clearly are shopping around for the best deals, and that may mean more cocktail loans – part variable, part fixed (known as a split loan)”.
Borrowers are also taking advantage of fixed rates that are currently, on average, lower than variable-rate mortgages.
According to research by mortgage comparison website RateCity.com.au, the average three-year fixed rate is 6.24%, compared with the standard variable mortgage rate average of 6.74%.
RateCity.com.au lists IMB Building Society’s three-year fixed rate product, which has an interest rate of 5.89% as the lowest rate in the market, followed by the Greater Building Society at 5.95%.
Lenders to have cut their fixed-rate mortgages recently include ME Bank, which cut its three-year fixed rate on the Super Member Home Loan to 5.99% on May 7.
Towards the end of April Westpac brands Rams, Bank of Melbourne and St George all cut their three-year fixed-rate products to 5.99% (the two banks for a limited time).
The growing appeal of fixed rate mortgages was foreshadowed in March Mortgage Choice figures (released in April), which found that the popularity of fixed-rate loans among its borrowers had jumped to a four-year high. Fixed-rate loans accounted for 26% of approved home loans written by Mortgage Choice mortgage brokers in March, up from 20.6% in February and well above the 12-month average of 17.7%.
At the time, Mortgage Choice spokesperson Belinda Williamson attributed the increase in demand for fixed-rate mortgages to concerns over that the Reserve Bank might increase the cash rate or lenders moving their interest rates independently of the central bank.
“Borrowers’ appetites for fixed-rate loans may have also been spurred on by competitive lender pricing,” Williamson added.
In April 2008 borrowers locked in fixed rate mortgages as the cash rate climbed to 7.25%, the highest rate since December 1994, following six years of incremental rate increases.
However, borrowers that switched to fixed-rate products in April 2008 were severely stung as the RBA entered into a big rate cutting cycle soon after  (starting in September 2008) to counter the effects of the GFC, reducing the cash rate from 7.25% to a record low of 3% by April 2009.
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Fixed-rate mortgage demand reaches four-year high: ABS

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The Reserve Bank does not expect the residential construction sector to mount a recovery in the near future, assistant governor Philip Lowe has said in a speech comparing the performance of the mining and non-mining sections of the economy.
His comments come as ABS housing finance figures show the number of loans for the construction or purchase of new homes lifted by 3.5% in March but are still tracking at post-GFC levels of below 8,000 monthly mortgage commitments.
Lowe said the RBA had expected dwelling approvals to pick up gradually over 2011, but this pick-up had not eventuated.
He described this as the “biggest surprise” in terms of the demand-side of the economy.
“One possible explanation for this is that it is one of the side effects of a return to more traditional savings and borrowing behaviour by households,” Lowe said.
“This change in behaviour is having ripple effects through the economy, including through a lowering of expected capital gains on housing.
“This has made developers, financiers and households less willing to commit to new construction despite rising rental yields, lower prices relative to income and ongoing growth in population.
“While, at some point, the improving fundamentals should generate a pick-up in home building, the recent forward-looking indicators do not suggest that this is imminent,” Lowe said.
During the speech, Lowe also highlighted that the RBA expects the current low rate of underlying inflation to persist over the next few years, which would give it the flexibility to cut interest rates further.
“The bank’s latest inflation forecast is for underlying inflation, abstracting from the effects of the carbon price, to stay close to its recent rate over the next one to two years,” said.
He also highlighted big differences in the growth rates and demand for goods and services related to the mining sector compared with the non-mining sector, with the March quarter CP data showing “declines in the prices of most goods, the price of domestic holidays, and for the price of new dwellings”.
“These are all areas where demand growth has been soft and firms’ margins are under downward pressure,” Lowe said.
He said the RBA expected overall GDP growth to “return to around trend over the forecast horizon” with recent reductions in the cash rate providing “some boost to demand in the non-mining-related parts of the economy”.
“However, it does seem likely that growth in some sectors will remain below the average experienced over the past couple of decades.
“How things develop will depend importantly on the ability of firms to improve their productivity and on the ability of the labour market to match workers with the new jobs being created.”
 
 
 
 
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No imminent recovery in home building: RBA

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Property investors seeking property investments that best match their investment strategies now have a new search tool launched by real estate portal <a href="https://www.homesales.com.au/" target="_blank">Homesales.com.au</a>.
The free search tool allows property investors to search for properties based on whether they are seeking a positive or negative cashflow investment.
Investors are also able to search based on suburban historical capital growth performance, suburban rental yields, suburban population size and the percentage of people who own properties in the suburb.
Investors can choose from a number of mortgage repayment options when beginning their searches.
Capital growth performance and yield data is provided by Residex, while suburb home ownership and population data is “created” by Residex based on ABS data from the 2006 census.
Each property listing also provides median weekly rents for houses and units in the suburb, the annual number of sales, average vendor discounting and average number of days on market – all provided by Residex.
While each listing provides a “Property Rental Yield” category, this information is not currently provided.
The search does not include properties listed for auction or those with a price on application listing.
Homesales.com.au is a website in the stable of ASX-listed online car sales classifieds portal carsales.com.au.
“Property investment is about making informed rather than emotional decisions. Therefore it was important to build a unique service for this part of the property marketplace,” says homesales.com.au general manager Rhett Dallwitz.
Dallwitz says the investment property search is the first of a number of market-specific launches homesales.com.au is planning moving into the next financial year.
For more on online tools for property investors, sign up for our free webinar this Thursday, May 17 at 12.30pm.
 
 
 
 
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New online investment property search from homesales.com.au prioritises financial strategy alongside location

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Some signs of life returned to the mortgage market in March, with owner-occupier mortgage commitments rising 0.3% on a seasonally adjusted basis over the month, according to the latest ABS estimates. 
The value of investment housing commitments seasonally adjusted fell 1.0% in March 2012 while the total value of dwelling commitments excluding alterations and additions falling  0.5% on a seasonally adjusted basis in March to $20.18 billion.
The strongest gains were made in the resource-rich states, with owner-occupier mortgage commitments up 3.5% ($232 million) in Western Australia and 2% ($176 million) in Queensland. 
The Northern Territory was the standout among the smaller markets with a 23% ($73 million) increase. 
NSW remained flat with just a 0.1% increase in mortgage lending while there were falls recorded in Victoria (down 79, 0.6%), Tasmania (down 37, 4.5%), the ACT (down 22, 2.6%), and South Australia (down 14, 0.4%).
Mortgage broker Loan Market calculated that national results for the March 2012 quarter were 10% up on the corresponding quarter in 2011 with all states and territories on the mainland on the rise. Only Tasmania bucked the trend.
Western Australia and Queensland had March quarter increases of 25% and 16%  respectively, while the Northern Territory was up 18% and NSW 11%. There was a 4% increase in South Australia, 3% in the ACT and 2% in Victoria. Tasmania had an 8% decrease.
Loan Market corporate spokesperson Paul Smith says the latest figures are "highly encouraging". 
“We are obviously seeing more confidence from consumers so far this year, compared to last, which augers well for the months ahead.”
Smith says this month’s lowering of official interest rates from 4.25% to 3.75% would also have an impact on the home finance market in the coming months.
“With two consecutive months of flat activity, we should see the figures for May and June spike in reaction to the RBA’s rate cut,” he says.
”Even though most lenders held back on passing on the full 50 basis points, they still lowered their variable rates by significant margins in a positive move for home loan customers.
The Housing Industry Association (HIA) noted that the number of loans for the construction or purchase of new homes lifted by 3.5% in March,  "a welcome piece of good news given the existing weak conditions facing the new home building sector", according to HIA senior economist, Andrew Harvey.
“The March figures reflect a period prior to the 50 basis point cut in interest rates which occurred in May, and although the cut was only partiallly passed on by Australia’s banks, this factor should act to spur a further modest improvement in new home lending in the coming months,” Harvey says.
New South Wales was a key driver of the national result with the March 2012 seasonally adjusted number of loans for new housing (construction and purchase of new) up by 13.6%.
Elsewhere, Victoria rose by 1.7%, South Australia by 0.5%, Western Australia by 1.9%, Tasmania by 7.3%, the NT by 19.3% and the ACT by 12.1%. Queensland was the only jurisdiction which saw new home lending fall in the month of March (down by 2%).
The number of first-home buyer loans as a share of total owner-occupied home loans dropped to 16.4% in March 2012 from 17.2% in February 2012.
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Mining states lead rebound in demand for owner-occupier mortgages in March: ABS

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Mortgage Choice and Aussie Home Loans will be able to continue to require that their mortgage brokers be members of the Mortgage and Finance Association of Australia (MFAA) without the threat of legal action, following a ruling by the Australian Competition and Consumer Commission (ACCC).
Aussie and Mortgage Choice along with Virgin Money and ING Bank lodged applications in 2007 and 2008 known as “third line forcing notifications” seeking protection from legal action for its exclusive arrangement with the MFAA.
The requirement restricted brokers’ choice of industry body membership and did not recognise membership of rival industry body the Finance Brokers Association of Australia (FBAA).
The notifications protected the four organisations until such time as the ACCC made its ruling.
During the course of the review, ING Bank withdrew its notification and Virgin Money advised that it did not engage in the conduct.
Exclusive dealing arrangements such as third line forcing are prohibited under Australian competition rules, but organisations can apply to the ACCC for protection from legal action for these arrangements to continue.
The applications proved highly controversial within the mortgage broking industry.
In making its ruling, ACCC chairman Rod Sims said the consumer watchdog believed the arrangements “continue to deliver a benefit to the public, notwithstanding the commencement of a national regulatory regime for the credit industry in 2010”.
“The MFAA's membership requirements impose higher educational and certain other professional standards on its members than the regulatory regime,” said the ACCC in its ruling.
"The ACCC considers requiring MFAA membership is likely to assist those lending businesses to ensure that their brokers are of a consistent high standard and to meet their compliance obligations under the National Consumer Credit Protection Act.
“The ACCC acknowledges requiring MFAA membership restricts choice of professional association for these brokers, thereby limiting competition from other similar professional associations.  However, given the small number of mortgage brokers currently affected by the notified conduct compared to the overall size of the industry, the ACCC considers that any public detriment is likely to be minimal.
“Further, the MFAA membership requirement is only imposed by two industry participants.  There are a large number of other businesses that individual brokers can work for if they disagree with the MFAA membership requirement.”
 
 
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ACCC allows Aussie and Mortgage Choice to require MFAA membership

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

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

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