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ANZ has announced it will lift rates by 0.06%.
Effective 20 April 2012, ANZ’s new standard variable mortgage rate will be 7.42%pa, the bank said in a <a href="https://t.co/4ZylQhtv">https://t.co/4ZylQhtv</a> statement.
It came at 5.18 pm, the second time in three months it has moved independent of the Reserve Bank of Australia, and ahead of the other big banks.
With the stock market closed and people heading home or to the pub ANZ had still not made its announcement on its much-anticipated independent rate call.
Economists and analysts had even jestingly been tweeting about a possible announcement to coincide with the kick-off in tonight’s AFL and NRL games.
There was even been the creation of a new hashtag: #sneakyhike.
“Where is the ANZ announcement on retail interest rates? Waiting the bounce of the ball in Collingwood vs Carlton?” tweeted former Gillard economic policy advisor Stephen Koukoulas.
Earlier economist Christopher Joye tweeted: “ANZ may be waiting for market close at 4.30 pm – a hike in rates would be price sensitive.”
He later tweeted the bank could keep interest rate steady but cut deposit rates, which would have the same effect on profit margins.
RateCity.com.au tweeted the ANZ media team:
@ANZ_Media @ANZ_AU any news on Rate Review meeting?
SBS news presenter Ricardo Goncalves tweeted: It's close of business (5pm) and still no @ANZ_Media #rates announcement. Putting in for overtime are we?
Sky News business presenter Brooke Courte tweeted: Tick.... Tick.... Tick... #Anz #rates #sneakyhike?
The March decision to keep rates on hold was made at 3.30 pm.
The February increase decision was made at 2.30 pm.
ANZ_Media ? @ANZ_Media: ANZ to increase rates for variable mortgages and small biz by 0.06%pa to 7.36%pa. 3-year fixed rate cut 0.15% to 5.99%pa...
Earlier today the bank announced a$17.8 million bond deal maturing in 2017.
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ANZ lifts rates again after keeping consumers in suspense until knock-off time: RBA interest rates aftermath

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Meriton boss Harry Triguboff has demanded that the RBA cut interest rates to encourage more local buyers of his apartments following the completion of another project in Sydney.
Triguboff says interest rates are currently too high.
“He [RBA governor Glenn Stevens] has to drop [the cash rate]. I can’t believe it’s that high,” Triguboff said as the red ribbon was cut on his 24-storey Vantage apartment block in Rhodes in Western Sydney.
Triguboff says further rate cuts would increase demand for his apartment projects.
“[Rate cuts will make them] a little cheaper and will bring buyers back into the market,” he told The Australian Financial Review.
“It got to a stage [last year] where I had 85% of purchasers who were Chinese, and now it’s down to 65%.
“We’re very happy with Chinese coming here, but we must have our own.”
According to Triguboff, there is strong demand for apartments in Sydney, as long as they are priced correctly.
“Gone are the days where I had to fight with the newspapers and tell them this is the best way to live,” Triguboff says.
Prices in the 263-apartment block start from $415,000 for a one-bedroom apartment, with two-bedroom apartments priced between $585,000 and $840,000 and three-bedroom apartments priced from $825,000 to $1.25 million.
Speaking at the opening of the apartment project, NSW premier Barry O’Farrell said Meriton’s contribution was greater than the taxpayer bill of $22 million and pledged further such co-operation in the future.
O’Farrell said the NSW government did not have enough money to “remediate all the crook sites around NSW”.
The Vantage tower is part of a wider Meriton precinct development, which will include childcare facilities, a new public park and shopping centre links.
Triguboff says he bought the Rhodes site for “practically nothing” because no one else was willing to buy the polluted land.
He says he was captivated by its position overlooking the Parramatta River.
 
 
 
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RBA must cut rates to encourage more Australian buyers: Harry Triguboff – RBA rates decision countdown

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The better-than-expected unemployment result in March has weakened the case for multiple rate cuts, but economists are still tipping the Reserve Bank to reduce the cash rate by 25 basis points when it meets on May 1.
BT Financial Group’s chief economist Chris Caton says the jobs numbers are very important to the RBA and says the case for a rate cut in May has weakened, though it could still happen.
“For some time, I have had the view that a clear upward trend in unemployment would be the most likely catalyst for a further rate cut,” Caton told the Australian Financial Review.
UBS chief economist Scott Haslem reached similar conclusions.
Haslem says the March quarterly inflation number (due on April 24) would be low enough to encourage the RBA to cut rates on May 1 but says the prospect of a follow-up June cut is now more widely questioned.
Currently interest rate markets are pricing in only one interest rate cut in the next three months, down from expectations of two rate cuts over the quarter earlier in the month.
Unemployment remained at 5.2% in March, when most economists were tipping to rise to 5.3%.
The stronger-than-expected jobs numbers pushed up the Australian dollar against the US dollar, rising half a cent to $1.03 yesterday and continuing the gain today, currently trading around $1.043.
The data showed 44,000 jobs were added to the national economy during March, well above economists' expectations for an increase of 5,000 jobs, while the participation rate (those employed or actively seeking work) rose modestly from 65.2% to 65.4%.
Unemployment rose in Victoria from 5.5% to 5.8% and Western Australia (3.9% to 4.1%) but dropped in NSW (5.1% to 4.8%) and Queensland (5.7% to 5.5%).
Tasmania has the highest unemployment rate of 7%, which remained unchanged during March.
In its assessment of the unemployment data, Westpac says the numbers show that the labour market appears to have stabilised in NSW but it has entered a new downturn in Victoria as the jobs losses in construction and manufacturing start to mount.
“Jobs growth is picking up in the mining states but as Qld continues to disappoint it is interesting to note over the last six months WA has created a total of 29.6,000 jobs while NSW, Vic and Queensland combined has only been able to add a total of 10,200 jobs,” says Westpac. 
Commonwealth Bank interest rate strategist Phillip Brown expects the RBA to go ahead with its rate cut, but says the jobs data means there is now less prospect of the RBA embarking on a series of rate cuts
"It's a bit hard to tell the internal thoughts of the RBA board members, but we don't think this is going to change their action in May," Brown says.
However, CommSec economist Craig James called the March jobs data “murky” though at first glance they might appear “heartening.
He also disagreed that the jobs numbers would be as closely watched as other economists claim and said global factors were still more important.
“The jobs data is unlikely to make waves at the Reserve Bank. Rather the central bank will be more focused on the current situation in Euro Zone and even the slowdown in China.
“Any escalation of the Euro Zone debt crisis is likely to prompt the Reserve Bank to move sooner rather than later when it comes to rates,” he says.
James says the unemployment results needs to be put into perspective.
“The latest March result follows the modest fall in employment in February and a more sizeable fall December. In fact, over the past five months employment growth has totalled just 36,400 positions – or around 7,000 jobs a month.
“The month-to-month data can certainly be volatile. However, even a smoothed longer-term view confirms the sluggishness in the labour market. Employment is barely growing having recorded an anaemic annual growth rate of just 0.3%,” he says.
James also highlights that business conditions would not improve for many sectors of the economy.
“From a business perspective there is no doubt that trading conditions will remain difficult and profitability continue to be affected.
“In addition the strength of the Australian dollar will continue to cripple manufacturing, tourism and exports outside the resources space. As a result it is more likely that businesses will hold onto current staff rather than significantly adding to their workforce,” he says.
In it is April Market Insights report, released on April 4 ahead of the unemployment data, Westpac said it was disappointed that the RBA “continues to talk about little change in the unemployment rate” and said there were dangers in only relying upon the unemployment rate as a measure of labour market conditions.
 
 
 
 
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March jobs data weakens case for multiple rate cuts, but May 1 cut still expected: Economists – RBA rates decision countdown

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House prices are expected to bottom out later in the year and then starting rising modestly from 2013 led by Western Australia, the latest NAB quarterly residential property market survey has forecast.
National house prices fell 1.3% in the first three months of the year, following a fall of 2% in the 2011 December quarter and a 2.4% decline in the September 2011 quarter, according to the survey of about 300 property market participants, including real estate agents and property developers. 
Those surveyed are forecasting a further 0.2% decline over the next 12 months and then 1.6% growth in 2013 and 2014. 
Western Australia is the “standout for price growth” over the next 12 months, with a 1.3% rise expected. NAB is most pessimistic about Victoria, with house prices forecast to fall 1.5% over the same period.
NSW house prices are expected to remain flat with growth of just 0.4%, and small declines are forecast for SA/NT (-0.6%) and Queensland (-0.2%).
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Over the March quarter stronger outcomes were recorded in all states bar NSW, where house prices fell by 0.4% following a 0.3% decline in the December 2011 quarter. 
Despite the drop, NSW was the second best performing market over the March quarter after WA, where prices fell 0.1% following a 1.4% decline in the previous quarter. 
Prices were significantly weaker in Queensland (-2.4%), SA/NT (-1.9%) and Victoria (-1.8%). 
The national rental market showed little growth over the quarter, with house rents rising 1.1%. It is expected to pick up by 2.9% over the next year and 4.3% over next two years.
There was a wide divergence in rental market performance, with a notable softening in rental markets in SA/NT and a “big turnaround in the rental story in Victoria”.
“With slower population growth and higher construction rates contributing to rising residential vacancy rates in metropolitan Melbourne, Victorian rents fell -0.2% in the first quarter of 2012, compared with a 0.4% increase in the previous quarter. In contrast, rental growth was strongest in WA (2.6%) and NSW (2.2%),” says the report.
National rental growth expectations over the next year softened to 2.9% from a forecast of 3.2%, with growth of 4.3% forecast (previously 4.6%) over next two years. NAB expects rental returns to continue to be strongest in NSW and WA.
While the outlook for rents in WA (4.5%) and Queensland (2.4%) was broadly unchanged, expectations softened in SA/NT (2.6% from 3.7% previously), Victoria (1.5% from 1.8% previously) and in NSW (3.8% from 4.5% previously). 
Expectations softened in all states bar Victoria (2.9% from 2.8% previously), but it remains the weakest state for rental growth overall. Rental expectations over the next two years remain strongest in WA (5.7%), NSW (5.2%) and SA/NT (5%).
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Positive rents and falling home values will continue to support rental yield growth, says NAB. 
The other key findings of the report were:
<ul>
<li>First-home buyers and resident investors less active in the market for new property, but overseas buyer activity increases. Demand for new property still strongest for inner-city houses and low-rise apartments/townhouses. </li>
</ul>
<ul>
<li>Tight credit conditions and housing affordability cited as the most “significant” constraints on new housing development. Lack of development sites and construction costs becoming problematic, especially in WA. </li>
</ul>
<ul>
<li>Overall demand for existing property improved slightly. Houses still the most preferred type of property, especially in the inner city. Low- and high-rise middle-ring apartments/townhouses are the least preferred option for existing property buyers. </li>
</ul>
<ul>
<li>Capital growth expectations remain strongest for existing property in the sub-$500,000 price range. Outlook for premium property remains “poor”. </li>
</ul>
<ul>
<li>Access to credit still viewed as the biggest impediment to purchasing existing property but the level of concern is being slowly pared back. Employment security has emerged as the next biggest concern, with Victoria the most pessimistic state.</li>
</ul>
 
 
 
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House prices to bottom out in 2012 and start rising from 2013: NAB

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The Adelaide unit market proved fairly resilient in the second half of 2011 and ended the year down only fractionally.

WBP says median house price data indicates Adelaide unit prices appear to have bottomed out. 

“Having said that demand is still soft in comparison to the first home buyer boom,” the valuer says.

Charles Tarbey and Louis Christopher offer the same comments about the Adelaide unit market as for the housing market: fairly stable, but showing signs of a pick-up in activity should confidence improve.
<img src="/images/stories/clock-adelaide-units.jpg">
In a recent report, CBRE noted that the South Australian government is currently considering changing planning regulations to increase apartments heights (up to 10 storeys in some areas) to encourage apartment living in inner-suburban areas. The plans include new tram lines and cycling and pedestrian pathways, which once implemented will kick off a 30-year plan to fill unoccupied “infill” spaces close the city.

While there are a number of apartment projects under construction (such as the 108 Uno apartments on Waymouth Street), many others are all still being marketed off the plan or yet to receive development application approval. CBRE points out that a problem in Adelaide is that there are often too few pre-sales for projects to proceed to the construction phase.
Population: 1.2 million
Median unit price: $320,000
Unit price growth in February 2012: -3.1%
Annual unit price growth to December 2011: -1.1%
Annual unit price growth to July 2011: -6.8%
Rental yield: 4.8%
To find out where your capital city's house or unit market is on the property clock, <a href="http://propertyobserver.com.au/ebooks/free-ebook-australias-autumn-2012-property-clock" target="_blank">download our free eBook.</a>
Property Observer has also analysed the <a href="https://www.propertyobserver.com.au/south-australia/adelaide-house-market-at-five-o-clock-and-in-a-state-of-limbo-experts/2012041254251" target="_blank">Adelaide house market on the property clock</a>.
 
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Adelaide unit market at six o'clock, with prices bottoming out

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The Adelaide housing market appears to be in a state of limbo, though annualised data from RP Data shows that house price falls accelerated during the final six months of 2011.

Louis Christopher describes the Adelaide market (both houses and units) as “neither falling nor recovering”.

WBP believes the city’s market still has a way to go before bottoming out but says that house prices appear to be stabilising in some areas, while demand is weak in others.

Charles Tarbey places Adelaide close to the bottom of the cycle and says that while there is a higher level of housing stock at the start of 2012 than at the start of 2011, these levels are steadily declining.  

“It may only require a pick-up in global confidence for activity to increase. Signs of increasing activity can be seen, for example, in attendance levels at open for inspections,” he says.
<img src="/images/stories/clock-adelaide-houses.jpg">
Time: Five o'clock
CBRE says affordability will be the key issue for the Adelaide market during the next 12 to 18 months despite the recent house price correction. CBRE says a recovery in the Adelaide housing market is heavily tied to further interest rate cuts and a reduction in global uncertainty over the eurozone, which is encouraging buyer caution.

According to the Real Estate Institute of South Australia, Adelaide vacancies sit around the 3.1% level, just above the equilibrium figure of 3% – indicating a slight oversupply of rental accommodation.
Population: 1.2 million 
Median house price: $390,000 
House price growth in February 2012: 1.4% 
Annual house price growth to December 2011: -5.3% 
Annual house price growth to July 2011: -3.9% 
Rental yield: 4.2% 
To find out where your capital city's house or unit market is on the property clock, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-autumn-2012-property-clock">download our free eBook.</a>
Property Observer has also analysed the <a href="https://www.propertyobserver.com.au/south-australia/adelaide-unit-market-at-six-o-clock-with-prices-bottoming-out/2012041254252" target="_blank">Adelaide unit market on the property clock</a>.
 
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Adelaide house market at five o'clock and in a state of limbo: Experts

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The Melbourne and Sydney prime CBD retail markets continue to perform strongly, driven by luxury international retailing brands seeking spaces for new stores, according to the April Herron Todd White (HTW) Report.
The two CBD markets are outperforming retail property in their respective suburban markets, with a two-speed retail market in evidence in both cities.
HTW valuers quote “industry sources” as saying vacancies in the Melbourne CBD are at record lows, “driven by population growth and a substantial amount of residential development, particularly in the northern CBD in the university precinct”. 
“Super-prime rental levels (i.e. Bourke Street mall) now sit in the order of $5,000 per square metre to $8,000 per square metre, and the location is not showing any signs of slowing, with Zara, Steve Madden and Swarovski entering into new lease agreements. 
“Rental levels within prime retail strips (i.e. Swanston Street) have risen a reported 5.1%, while secondary CBD retail rentals have risen a reported 8.11%.” 
A separate March 2012 report by CBRE says the Melbourne CBD has a current vacancy rate of 2.53%, just ahead of Sydney at 3% and Brisbane at 7.2%.
CBRE says vacancies are particularly tight in Melbourne laneways (just 1.6%) but have eased in some streets including Lonsdale, Elizabeth, Collins and Little Collins streets.
According to CBRE commercial agents Max Cookes, who along with Zelman Ainsworth recently negotiated the lease of a fourth location for Melbourne-based fashion label Life with Bird on Flinders Lane, the Melbourne CBD retail core remains a highly sought-after market, particularly by international retailers.
“We are in the process of concluding more than five retail leasing deals with international retail tenants in the Melbourne CBD. The tenants include international jewellers, fashion and accessories, home-wares, luxury brands and even international hospitality groups. 
“The level of enquiry we have received is stronger than this time last year. While a number of discretionary fashion retailers are experiencing weakened trade conditions, in the CBD it seems there are always retailers lining up to fill empty space,” says Cookes.
HTW says the Melbourne CBD market is characterised by a lack of supply, which has driven demand for retail space in the CBD. 
“There is minimal new / expanded retail development expected in 2012, with the only substantial retail development being ‘the corner’ at Melbourne Central, which is now complete. 
“‘The corner’ is located on the second level of Melbourne Central and is home to a mix of international and local fashion retailers. 
“Despite this development, new supply of retail space remains constrained and is expected to remain this way in the short term,” says HTW. 
The next big influx of new CBD retail space is not scheduled until 2014, when redevelopment of the Myer Lonsdale Department Store will be complete, providing a further 200 new retail outlets and 42,250 square metres of retail space. 
Most recently the attractiveness of prime retail CBD space was seen in the sale of the <a href="https://www.propertyobserver.com.au/retail/telstra-store-premises-in-melbourne-cbd-has-%248-million-price-tag/2012031253797">Telstra premises on the corner Collins and Swanston streets</a>, one of the busiest pedestrian corners in Melbourne, ahead of auction. 
The 65-square-metre shop was snapped up for $9.25 million by a private investor, with CBRE commercial agents Josh Rutman, Mark Wizel and Max Cookes receiving a number of good offers prior to the schedule March 22 auction culminating in an “auction before the auction”. 
In the Sydney CBD, HTW says continued white-collar employment growth and the rejuvenation of the premium Pitt Street mall (ranked <a href="https://www.propertyobserver.com.au/retail/pitt-street-mall-closing-in-on-fifth-avenue-retail-rents/2011090151391">fourth most expensive retail strip in the world</a> by Cushman &amp; Wakefield) has caused demand from international and premium retailers to increase. 
“Since the start of 2011 we have seen the opening of the Louis Vuitton store on George Street, the expansion of the Hugo Boss store on King Street and the opening of Burberry on George Street. 
“These high-end retailers who are hoping to increase their presence throughout Australia, have been seeking locations which offer more than a simple shopfront,” says the valuation firm. 
“In the case of Louis Vuitton, the fashion label committed to a complete refurbishment of the former Blacket Hotel, to create a premium two-storey retail destination. 
“Likewise the Burberry flagship store occupies the heritage-listed 343 George Street. With internet retailing now firmly at the forefront of every retailers mind, we expect that luxury retailers will continue to build on ‘the retail experience’ in a hope to attract consumers into their stores.” 
However, outside of the Sydney CBD HTW says there is weaker demand, which has resulted in an increase in vacancy and a subsequent fall in rental rates. 
“Rental rates for properties in traditional prime locations have fallen the most, as retailers with falling turnovers struggle with higher occupational costs,” says HTW.
Photograph of Burberry's Sydney store courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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International luxury brands drive up demand for retail space in Melbourne and Sydney CBDs: HTW

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Husband and wife luxury lodge operators James and Hayley Baillie will open their first inner-city boutique hotel in Sydney’s The Rocks next year and expect up to 90% of guests will be wealthy international travellers.
The Baillies have acquired 35-year leases on two adjacent historic buildings on George Street.
The two buildings are five-level Merchants House at 43-45 George Street, dating back to 1848, and 47 George Street, a sandstone warehouse dating back to 1843 and previously a Westpac Bank branch.
They are currently being developed by Tim Greer of Tonkin Zulaikha Greer architects.
James Baillie tells Property Observer the Great Ocean Road is next on the couple’s agenda, while they also have ambitions of opening a second larger luxury hotel in Sydney.
“The Great Ocean Road is very much on the cards. We are looking at various locations and have received great support from the Victoria government on this,” he says.
“The end game would be to open a second bigger hotel in Sydney. One day we’d like to open a larger luxury hotel in the 50- to 80-room range," he says.
The Rocks lodge will be called Baillies Sydney and will feature 10 suites aimed at wealthy overseas travel market with rates starting from $1,200 per night up to $3,000 per night.
James Baillie says he chose The Rocks because it is a “quintessentially Sydney location” and “perfectly located close to all of Sydney key iconic attractions”
He says it will be “like nothing Sydney has seen before” with guests receiving “first-name service”.
“Luxury lodges have a highly inclusive element to them with all meals and beverages and in the case of wilderness lodges they would eat most of their meals at the lodge.
“However in the case of Baillies Sydney, we want to give them the opportunity to experience fine Sydney dining if they wish.
“We will include an open bar for guests and weary travellers can choose to have their meals in the hotel, but we don’t want to compete with Sydney restaurants,” he says.
Guests staying at Baillies Sydney will have the option of being driven to nearby restaurants and taken on behind-the-scenes tours of the Sydney Opera House.
The Baillies will next turn their attention to the Great Ocean Road with James Baillie telling The Australian he sees “amazing potential for a luxury lodge” on the famous Victorian coastal road.
<img src="/images/stories/southernoceanlodge.jpg">
Baillie Lodges was founded in 2003 and currently operates three luxury lodges in wilderness locations, these being <a href="https://www.lordhowe.com/" target="_blank">Capella Lodge</a> on Lord Howe Island, the Baillies’ first venture, <a target="_blank" href="https://www.southernoceanlodge.com.au/">Southern Ocean Lodge </a>on Kangaroo Island (pictured above) and <a target="_blank" href="https://www.baillielodges.com.au/remarkable-lodge.asp">Remarkable Lodge in Tasmania</a>.
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Baillies to open luxury boutique hotel in The Rocks, with Great Ocean Road next on the agenda

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The strength of the St Kilda Road fringe CBD office market has been reaffirmed following a series of snappy sales at high yields ranging from 6.2% to 10.6%.
This week Centuria Capital’s property funds management subsidiary, Centuria Property Funds, announced that it had sold its 12-storey office 607 St Kilda Road for $28.5 million to a private investor on a strong yield of 8.23%. 
The fund had originally acquired the building in 2002 for $21 million and has spent about $5 million as part of an extensive refurbishment and service upgrades throughout the building. 
It was sold fully leased with a weighted average lease expiry in excess of six years following a joint campaign by Paul Henley and Langton McHarg from Knight Frank and Nick Rathgeber and Leigh Melbourne from Colliers International. 
Centuria Property Funds CEO Jason Huljich says he is delighted with the response to the campaign, which receiving multiple offers.
“St Kilda Road’s commercial property market is gaining momentum with high net absorption and low vacancy rates. 
“The competitive and sustained rental growth is attracting local and global investors to the area and the sale of 607 St Kilda Road is reflective of the popularity of the boulevard,” he says. 
Huljich says investors in the fund have benefited from “solid capital gain achieved plus strong income distributions throughout the term of the fund”. 
The sale of 607 St Kilda Road follows Centuria spending $58 million on acquiring another office property on the strip, 441 St Kilda Road, an A-grade office, on behalf of the Over Fifty Guardian Friendly Society. 
The building was acquired from the Dexus managed AXA Wholesale Australian Property Fund. 
The property has a net lettable area (NLA) of 16,175 square metres with a WALE of 4.08 years with tenants including Hutchinson 3G, SAP Australia, Kellogg Brown &amp; Root, Macquarie Telecom, Bank of Queensland and MAB Corporation. 
This property is also undergoing a significant upgrade expected to result in a 4.5 star NABERS rating from a current 3.5 star rating. 
There have been five other major office sales dating back to August 2010 according to the Savills March 2012 Melbourne Fringe Office report, including two which took place in the final quarter of 2011. 
In December Abacus Property Group picked up 484 St Kilda Rd, a 15 storey building for $68 million at a yield of 7.92%. It was marketed by Jones Lang LaSalle agents Robert Anderson and James Kaufman, with tenants including Symbion, Glencore Grain, and Australand. 
The other recent sale occurred in September with 601 St Kilda Road selling for $30 million September to the Quek family’s Shakespeare Management business.  The property, part of the Record Realty Trust portfolio, was sold by Jones Lang LaSalle agents Robert Anderson and James Kaufman and Knight Frank agents Paul Henley and Paul Burns on behalf of receivers KordaMentha at a yield of 10.6%.
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According to Savills, the St Kilda Road strip has 743,000 square metres of lettable area while Southbank and Docklands combined have 944,000 square metres of lettable office space. 
As of December 2011 there was 80,000 square metres of vacant office space on St Kilda Road compared to 32,000 square metres of vacant space in Docklands/Southbank. 
More than half of fringe Melbourne office space is prime quality (924,000 square metres) with the rest of secondary quality. 
The 2012 Property Council of Australia office market report shows that total vacancy on St Kilda Road decreased due to the highest demand in 17 years with vacancy rates falling from 13.4% to 10.8% over the six months to January 2012.
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Investor appeal of St Kilda Road office market continues with Centuria $28 million sale

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Profits margins on new residential developments are substantially higher in Sydney then they are Melbourne and Brisbane, according to a new report by the Centre for International Economics.
The Taxation of the Housing Sector report shows that average profit on a Sydney greenfield lot (new housing estates) is $44,000 compared with profits of around $30,000 in Melbourne and $31,000 in Brisbane. The report was commissioned by the Housing Industry Association (HIA) to highlight the high taxation burden faced by the housing sector and back <a href="https://www.propertyobserver.com.au/tax/hia-demands-tax-relief-for-new-housing-ahead-of-tax-summit/2011092951734">last September’s call for urgent taxation reform</a>.
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The story is similar for infill lots (redeveloped land in a build-up area) with Sydney generating developers profits of $32,000 compared to $21,000 in Melbourne and $27,000 in Brisbane.
Not only are Melbourne lot sales less profitable than those in Sydney and Brisbane, but Melbourne land developers are also facing higher council contribution levies.
The Property Council of Victoria estimates that development charges levied on Melbourne developers as part of local council development contribution plans (DCPs) increased about 26% over the past year.
The one-off charge paid by Victorian developers is used to fund essential infrastructure such as roads, sewers, drains and utilities.
Jennifer Cunich, executive director at the Property Council of Victoria, told the Australian Financial Review that costs levied on developments had suffered from rising construction costs, higher land values, larger open space requirements from local councils and higher conservation costs.
In May last year Victorian planning minister Matthew Guy promised to overhaul the way the contribution charge is levied on developers, but to date no changes have been implemented.
The CIE report notes that raw land sale price in some jurisdictions contains a hidden tax component resulting from the “monopoly of supply that local councils and state governments have over land release.
“This hidden tax is apparent where the raw land sale price is greater than the value of similar land that is not designated as available for residential use, such as agricultural land.
“Development costs, other than taxes, include land preparation costs, consultant fees, finance charges, council water rates, and development profit.
“Some of these charges may amount to taxes and inefficiencies if they are excessive relative to what they need to be.
“Planning delays add to financing costs and represent hidden taxes upon which the goods and services tax cascade as the developer tries to recuperate all development costs.
“Land preparation costs incorporate the cost of installing the National Broadband Network (NBN). This may represent a tax on housing for some residents whose net gain from the installation of the NBN is lower than the net cost.
“Consultant fees incorporate a hidden tax component where the cost of activities related to compliance is disproportionate to the benefits flowing from compliance (such as to third parties),” says the CIE report.
The CIE report also notes that government taxes and charges are significantly lower on infill dwellings, reflecting lower ambiguous taxes (charges imposed by state governments and local councils ostensibly for the provision of infrastructure) and charges such as infrastructure charges and a smaller anticipated impact of zoning restrictions on a given dwelling.
 
 
 
 
 
 
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Sydney most profitable residential market for developers as Melbourne costs rise: Report

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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