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The pace of decline in residential construction picked up notably in the final quarter of 2011, with residential starts falling to their lowest level since the GFC led by a 21% drop in Queensland, according to the latest ABS figures.
December quarter dwelling commencements fell 13.4% (compared to the same period in 2010) to a seasonally adjusted total of 33,653.
This is more than double the 5.8% quarter-on-quarter decline recorded in the September 2011 quarter.
Over the December quarter, housing starts fell 2.7% to 21,845 following a fall of 1.7% in the September quarter while the more volatile unit starts sector fell by 13.9% to 10,739 following a fall of 10.7% in the September quarter.
Apart from the big drop in Queensland dwelling starts there was 7.8% fall in Victoria and smaller falls in South Australia, WA, NT and the ACT.
NSW and Tasmania recorded small rises in dwelling starts.
 
Seasonally adjusted dwelling starts 
 
<table style="width: 459px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="76" nowrap></td>
<td width="51" nowrap>
 NSW
</td>
<td width="52" nowrap>
 Vic
</td>
<td width="47" nowrap>
 Qld
</td>
<td width="55" nowrap>
 SA
</td>
<td width="44" nowrap>
 WA
</td>
<td width="44" nowrap>
 Tas
</td>
<td width="39" nowrap>
 NT
</td>
<td width="52" nowrap>
 ACT
</td>
</tr>
<tr>
<td width="76" nowrap>
Dec-10
</td>
<td width="51" nowrap>
7628
</td>
<td width="52" nowrap>
14028
</td>
<td width="47" nowrap>
6603
</td>
<td width="55" nowrap>
2553
</td>
<td width="44" nowrap>
5276
</td>
<td width="44" nowrap>
746
</td>
<td width="39" nowrap>
261
</td>
<td width="52" nowrap>
1683
</td>
</tr>
<tr>
<td width="76" nowrap>
Mar-11
</td>
<td width="51" nowrap>
8483
</td>
<td width="52" nowrap>
13957
</td>
<td width="47" nowrap>
7218
</td>
<td width="55" nowrap>
2494
</td>
<td width="44" nowrap>
5051
</td>
<td width="44" nowrap>
760
</td>
<td width="39" nowrap>
456
</td>
<td width="52" nowrap>
1072
</td>
</tr>
<tr>
<td width="76" nowrap>
Jun-11
</td>
<td width="51" nowrap>
7421
</td>
<td width="52" nowrap>
15075
</td>
<td width="47" nowrap>
6253
</td>
<td width="55" nowrap>
2425
</td>
<td width="44" nowrap>
5087
</td>
<td width="44" nowrap>
649
</td>
<td width="39" nowrap>
159
</td>
<td width="52" nowrap>
1397
</td>
</tr>
<tr>
<td width="76" nowrap>
Sep-11
</td>
<td width="51" nowrap>
7301
</td>
<td width="52" nowrap>
12937
</td>
<td width="47" nowrap>
6824
</td>
<td width="55" nowrap>
2540
</td>
<td width="44" nowrap>
4782
</td>
<td width="44" nowrap>
574
</td>
<td width="39" nowrap>
296
</td>
<td width="52" nowrap>
1290
</td>
</tr>
<tr>
<td width="76" nowrap>
Dec-11
</td>
<td width="51" nowrap>
7342
</td>
<td width="52" nowrap>
11993
</td>
<td width="47" nowrap>
5605
</td>
<td width="55" nowrap>
2149
</td>
<td width="44" nowrap>
4626
</td>
<td width="44" nowrap>
607
</td>
<td width="39" nowrap>
236
</td>
<td width="52" nowrap>
1051
</td>
</tr>
</tbody></table>
 
Source: ABS
 
 
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Residential building starts plummet to lowest since GFC: ABS

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The “time to buy a dwelling” sentiment has improved 1.7% in March to be up 5.5% over the past 12 months, according to the March Westpac–Melbourne Institute Index of Consumer Sentiment.
Housing sentiment was the only bright spot in the March result, which showed consumer confidence has retreated to levels prior to the interest rate cuts of November and December.
While the housing outlook improved, the attraction of shares continues to deteriorate.
Only 5.4% of respondents nominated shares as the wisest place to put their money – the lowest proportion since the early 1990s.
The overall index fell by 5% in March from 101.1 to 96.1, below the level in October last year, and was based on the responses of 1,200 adults aged 18 and older conducted from March 5 to 9.
With the index below the 100 level, pessimists clearly outnumber optimists.
The “time to buy a vehicle” sentiment fell by 2.8% to be down 7.8% for the year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/westpacmarch14.gif"><img src="/images/stories/westpacmarch14thumb.gif"></a>
Commenting on the results of the survey Westpac chief economist Bill Evans says the “case has already been made for lower rates in Australia but expect that, at this stage, the board is not convinced.
“More time will be required before we see another rate cut. Our best expectation is in May or June,” he says.
According to Evans, the March result showed that sensitivity to interest rates has “clearly been one factor responsible for this weak print”.
“The survey in February closed off before it was announced that banks were raising their mortgage rates despite the Reserve Bank having kept the official cash rate on hold.
“Recall that the survey in February covered the week of the Reserve Bank’s board meeting. At the beginning of the week media reports had led respondents to confidently expect a 0.25% rate cut from the Reserve Bank,” says Evans.
“With the two previous rate cuts in November and December being passed on in full by the banks it is reasonable to assume that many borrowers expected a further cut in the mortgage rate of 0.25%. 
“Instead, mortgage rates were actually increased in the following week with banks raising mortgage rates by an average of 10 basis points. 
“It is likely that this reversal has impacted confidence. 
“This ‘rate effect’ is consistent with the 6.8% fall in the confidence of those folks who have a mortgage. However this observation does not explain why there was a 10.8% fall in the confidence of respondents who are renting accommodation. 
“There are other forces at work. Petrol prices for example, rose 3% between the February and March survey to average around $1.45 a litre,” he says.
Evans says supplementary questions indicate that respondents are particularly concerned about economic conditions and employment with notable weakness in how respondents view their finances. 
“The subindexes tracking responses on ‘family finances compared to a year ago’ fell by 8.6%; and ‘family finances over the next 12 months’ fell 4.5%. 
“The economic outlook also deteriorated, the sub-indexes tracking views on ‘economic conditions over the next 12 months’ fell by 2.5% and ‘economic conditions over the next 5 years fell by 6.1%,” Evans says,
“Saving plans continue to be very conservative with 34.6% of respondents assessing bank deposits as the ‘wisest place for savings’. That is up from 30.1% in December although below the record 37.8% proportion in September 2011,” he says. 
The sub-index tracking views on “whether now is a good time to buy a major household item” fell by 3.8%.
 
 
 
 
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Slight improvement in housing sentiment defies drop in consumer confidence in March: Westpac Index

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Property group Stockland has continued with its plans to reweight the business in favour of retail assets, announcing an agreement to sell its 55% stake in the Moorebank Industrial Property Trust (MIPT) for $123 million.
It will sell its stake in the trust to Qube Logistics, one of the MIPT joint venture partners, with settlement expected before June 30 2012.
According to Goldman Sachs REIT analyst Peter Zuk, the Moorebank site is Stockland's second largest industrial asset (by book value) representing 14.2% of its industrial portfolio.
The proposed industrial sale follows Stockland announcing its <a target="_blank" href="https://www.propertyobserver.com.au/retail/stockland-buys-centro-townsville-directly-opposite-current-stockland-centre/2012031253806">purchase of Centro Townsville for $36.5 million earlier this week.</a>
Stockland has also announced it would extend its on-market security buyback to up to 10% of issued capital, “reflecting its commitment to increasing returns through active capital management”.
Stockland CEO of commercial property John Schroder says the sale supports Stockland’s strategy to reweight its commercial property portfolio from office and industrial to higher-returning retail assets.
“While the proposed Moorebank Intermodal terminal remains a key NSW infrastructure project, it is not aligned with our strategy and its sale supports our active capital management program,” he says.
“This brings our total asset sales so far in the 2012 financial year to $918 million – funding we use to improve security holder returns through our security buyback and investing for future growth as well as maintaining low debt.”
Schroder’s comments echo those made by Stockland CEO Matthew Quinn at its interim results briefing last month when he said the property group <a target="_blank" href="https://www.propertyobserver.com.au/retail/stockland-continues-to-focus-on-higher-yielding-retail-commercial-property/2012020953322">would continue to sell its commercial and industrial assets and use the proceeds to reinvest in higher-yielding and less volatile retail assets.</a>
Retail assets have generated returns of 10% for Stockland, while industrial assets have generated 8.3% and office assets 7% return.
Following the latest announcement, Quinn says Stockland remains committed to growing its return on equity by selling lower-yielding assets to invest accretively in its own securities and fund future growth.
“Our securities are trading at a level that in our view does not reflect the underlying value of our business nor our strong capital position,” he says.
“With our conservative balance sheet and ongoing asset sales, we are well placed to continue to fund our buyback up to 10% of issued capital while retaining our strong financial position with low gearing and long-dated debt.”
Stockland’s gearing at December 31 2011 was 23%. Taking into consideration the asset sales program and the full cost of the extended buyback, pro forma gearing will remain around this level.
A minimum liquidity buffer of at least $500 million will continue to be maintained.
Stockland announced on August 19 2011 that it would undertake an on-market buyback of up to 5% of its issued capital (119.2 million securities). So far Stockland has bought back 4.75% of securities (113.2 million) at an average price of $3.02.
 
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Stockland to sell stake in industrial trust as reweighting towards retail continues

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A 22% drop in first-home buyer numbers in January, most of which occurred in NSW, indicates that talk of a housing market recovery in December last year might have been premature, says AMP chief economist Shane Oliver.
In absolute terms ABS figures show the number of NSW first-home buyers fell from 4,280 to 2,686 (the lowest number since September 2011), while the size of the average first-home buyer mortgage dropped slightly from $297,000 to $295,000.
In comparison, in Victoria, where there have been recent changes to stamp duty concession rules, first-home buyer numbers fell relatively modestly from 2,276 to 1,905. Western Australia was the only state where the number of first-home buyers increased (rising slightly from 1,263 to 1,278).
The fall in NSW first-home buyers was accompanied by a 6.3% drop in NSW mortgage commitments following a 7.6% rise in December as NSW first-home buyers rushed to buy homes ahead of the December 31 cut-off for stamp duty concessions on existing properties.
Overall, the mortgage market dropped 1.2% over January, well below CommSec expectations of a 2% gain over the month.
Oliver says the December figures were heavily distorted by the NSW stamp duty concession deadline.
“Virtually all that has happened is demand has been pulled forward, and we’re still looking for the fundamental recovery to come,” he says.
SQM Research managing director Louis Christopher is also bearish about a recovery, currently “neutral to negative about any type of rebound in approvals for February”.
“We believe the independent rise in lending rates by the major banks dented sentiment for the month, which has transpired into soft auction clearance rates in Sydney and Melbourne for this time of year. It is possible though that there may be a continued recovery in housing finance approvals for states such as Western Australia,” he says.
According to Christopher, when you exclude refinancing from the equation NSW mortgage commitments actually fell by greater than 6.3%.
“Unfortunately the ABS does not provide a state breakdown excluding refinancing, so there is a bit of guess work there,” he says.
December quarter figures released by Real Estate Institute of Australia (REIA) today show the two rate cuts of November and December helped push up house prices by 0.7% over the three months (0.1% for other dwellings), with Melbourne the biggest beneficiary with a 1.9% gain in house prices to $550,000.
However, the Australian weighted average median house price of $522,696 was 3.2% lower compared to the December quarter 2010.
Over the year, median prices declined for both types of dwellings. Compared to the same quarter of 2010, the median house price decreased 3.2%, while the median house price for other dwellings recorded a 1.0% decline.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/reiamarch14.gif"><img src="/images/stories/reiamarch14thumb.gif"></a>
Source: REIA
All other key figures in the January ABS figures indicate momentum has dropped out of the mortgage market.
The value of new home loans in January fell by a seasonally adjusted 2.3% following rises of 3.8% in December and a 2.1% rise in November helped by the two RBA rate cuts.
Loans for investment housing fell 7.1% after rising strongly by 7.5% in December and by 1.8% in November.
Loans to owner-occupiers were stagnant in January, following a rise or 2.3% in December and a 1.4% gain in November.
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Talk of housing market recovery premature: AMP’s Shane Oliver

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Period flats and houses close to Melbourne “villages” such as Elwood, Kensington, South Yarra, Prahran and Richmond Hill offer great investment potential, according to Greville Pabst, chief executive of property valuation and advisory firm WBP Property Group.
Speaking at the WBP Melbourne Property Outlook breakfast, Pabst said Melbourne had been built on villages and that being able to walk to the village to get a coffee was very important when looking at a potential property investment.
He says that “1960s and 1970s flats in low density are going to perform well. The high rises will struggle to perform”.
“In suburbs like Elwood, Prahran and South Yarra we are starting to get some really good results such as a two-bedroom 1960s flat in South Yarra that sold at auction recently with two strong bidders for $713,000.”
Pabst says he is also seeing competition for good-quality one-bedroom flats in East Hawthorn and South Yarra with prices approaching $500,000.
WBP is forecasting growth of between 2% and 6% for established houses and units within 10 kilometres of the Melbourne CBD in 2012.
However, the outlook for modern units in places like Docklands is poor, with WBP forecasting no price growth in 2012 and a potential drop of 5%.
“Investments must have high land value and an element of scarcity. Owning one apartment out of 200 in Docklands has no scarcity value,” Pabst says.
“You also have to think about the underlying land value,” he adds.
WBP Housing performance predictions for 2012
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="262">
 
</td>
<td valign="top" width="148">
Lower Limit
</td>
<td valign="top" width="205">
Upper Limit
</td>
</tr>
<tr>
<td valign="top" width="262">
Modern units / apartments (legitimate resales)
 
</td>
<td valign="top" width="148">
-5%
</td>
<td valign="top" width="205">
0%
</td>
</tr>
<tr>
<td valign="top" width="262">
Established units/apartments 
 
</td>
<td valign="top" width="148">
+2%
</td>
<td valign="top" width="205">
+6%
</td>
</tr>
<tr>
<td valign="top" width="262">
Prestige market ($3.5m +)
 
</td>
<td valign="top" width="148">
-5%
</td>
<td valign="top" width="205">
 
</td>
</tr>
<tr>
<td valign="top" width="262">
Prestige market ($2m - $3.5m)
 
</td>
<td valign="top" width="148">
-4%
</td>
<td valign="top" width="205">
+2%
</td>
</tr>
<tr>
<td valign="top" width="262">
Established houses: 10km of CBD (under $2m)
 
</td>
<td valign="top" width="148">
+2%
</td>
<td valign="top" width="205">
+6%
</td>
</tr>
<tr>
<td valign="top" width="262">
Established houses : 11 – 20km of CBD (under $2m)
 
</td>
<td valign="top" width="148">
0%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="262">
Holiday / leisure market 
 
</td>
<td valign="top" width="148">
-10%
</td>
<td valign="top" width="205">
-5%
</td>
</tr>
<tr>
<td valign="top" width="262">
Mortgage-belt (under $500k)
 
</td>
<td valign="top" width="148">
-2%
</td>
<td valign="top" width="205">
3%
</td>
</tr>
<tr>
<td valign="top" width="262">
Development sites 
 
</td>
<td valign="top" width="148">
-5%
</td>
<td valign="top" width="205">
0%
</td>
</tr>
</tbody></table>
 
Pabst provided examples of actual sales to show the merits of investing in period properties within villages instead of cookie-cutter units in suburbs with less history.
WBP advised on the sale of a 1960s two-bedroom flat in this block (below) on Tennyson Street in Elwood.
The flat <a href="https://www.realestate.com.au/property-apartment-vic-elwood-107372208">sold for $632,000 in May 2011</a>, having previously sold for $475,000 in 2008, equating to annual growth of nearly 10%.
<img width="470" src="/images/stories/pabst1.jpg">
The flat is close to the St Kilda Botanical Gardens among a “leafy streetscape” and is within walking distance of the St Kilda shopping strip that begins at the intersection of Barclay and Acland streets.
Pabst contrasted this with a flat on NewQuay Promenade in Docklands, which sold for $540,000 in 2010 having  been purchased for $495,000 in 2005 – annual growth of just 2%.
<img width="470" src="/images/stories/pabst2.jpg">
“You’re better off putting your money in the bank,” he says.
Furthermore, Pabst says the higher corporate ownership costs on this particurlar unit made it unviable as an investment
In October 2009, WBP advised on the sale of this three-bedroom Edwardian two-storey home. It sold for $780,000 having previously sold for $270,000 in 1998, representing annual growth of 10.12%
<img width="470" src="/images/stories/pabst3.jpg">
Pabst contrasted this with the 2012 sale of this three-bedroom house in Derrimut (pictured below), for which WBP acted as vendor’s advocate. The property was bought for $330,000 in 2004 and sold for $335,000, representing annual growth of 0.2% over eight years.
“She (the vendor) could have bought a flat in South Yarra that would be triple that value now,” says Pabst.
<img width="470" src="/images/stories/pabst4.jpg">
WBP also advised on the sale of a top-floor one-bedroom flat in this low-rise complex in Rowena Parade in Richmond Hill, which looks out of the MCG.
<img width="470" src="/images/stories/pabst5.jpg">
The <a href="https://www.realestate.com.au/property-apartment-vic-richmond-107555255" target="_blank">unit sold for $468,500 last year</a>, having previously sold for just $79,500 in 1998, equating to annual growth of nearly 15%.
In contrast, a Docklands apartment in this complex (below) on Bourke Street sold for $422,000 in 2010, having previously sold for $410,000 in 2007. This equates to annual price growth of 0.25%.
<img width="470" src="/images/stories/pabst6.jpg">
Pabst says investors need to burrow down not just into the suburb but into street level and even go as far as considering one side of the street versus the other.
“In Richmond, we don’t like to go south of Swan Street because of freeway noise or too far north of Bridge Road because the streets are narrow and as you get closer to Victoria Street you compete with restaurants for parking,” he says.
 
 
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Hotspots: Villages like Elwood and Richmond better for investors than Docklands: WBP

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More pressure has been placed on the US economic recovery and the global economy after new US homes sales fell by 2.2% to an annual seasonally adjusted rate of 307,000 units – the lowest level since 1963.
Economists polled by Reuters had been forecasting annualised sales of 320,000 units.
Patrick Newport from US-based research firm IHS Global Insight described 2011 as “the worst year on record for the new single-family home market”.
The poor result comes despite the US government’s efforts to stimulate the housing sector, with Federal Reserve chairman Ben Bernanke pledging to keep interest rates at a near zero rate until at least mid-2013.
At the same time US president Barack Obama is proposing a plan to help borrowers reduce their monthly mortgage payments by allowing those borrowers who own greatly devalued homes to refinance into cheaper mortgages.
Currently home owners who own houses that are valued at 32% below their 2006 peak are prevented from refinancing into cheaper mortgages.
In January 2006, the average 30-year fixed rate was 6.07%.
The current rate for 30-year fixed rate mortgages stand at 3.88% meaning refinancing into a cheaper loan would save borrowers around $3,000 per year.
Writing in Chanticleer, Tony Boyd describes the US housing crisis as the “cancer” at the heart of the US economy and says that on some measures it “is worse than it has ever been despite three years of central bank support for the economy”.
According to Boyd, Australian companies with significant operations in North America (including shopping centre group Westfield) and the rest of the world economy have a “vested interest in the US continuing its bizarre treatment of mortgage credit, which combines tax deductible interest payments, no capital gains tax and the ability to refinance fixed-rate loans at no penalty to the borrower whenever interest rates fall”.
Boyd says the practice of non-recourse lending in the US has encouraged a “no-responsibility” approach to home loans that peaked in the years leading up to the sub-prime mortgage crisis in 2008.
“The culture of not having to take responsibility for debts is inherently dangerous,” Body says.
“The results of all that are that America is now stuck with an inventory of about 1.6 million homes that have either been repossessed or are seriously delinquent. About 10% of total US consumer debt of $US11.66 trillion ($10.96?trillion) is in some stage of delinquency, according to the latest figures from the Federal Reserve Bank of New York.
“About two-thirds of the $US1.2 trillion in delinquent debt is more than 90 days overdue.
“Economic recovery was meant to boost housing activity, absorb the inventory and kick-start a lift in housing construction. But the years of low interest rates have not worked.”
 
 
 
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Falling US home sales puts more pressure on global recovery

Perth seventh most expensive CBD office market in the world, Sydney falls to 10th: Knight Frank

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The number of owner-occupier mortgage commitments fell 6.3% in NSW in January following a 7.6% rise in December, according to the latest seasonally adjusted ABS figures.
The drop in NSW was the result, in part, of  the end of the rush in mortgage commitments in December as first home buyer beat stamp duty concessions on established properties that ended on December 31.
Nationally, mortgage commitments fell 1.2% to 47,768 following a downwardly revised figure of 48,370 in December, breaking a run of six straight rises between July and December. Excluding no growth in June, owner owner occupier mortgage commitments had increased for 10 straight months going back to March 2011.
Loans were expected to have risen by 2% in the month, according to CommSec analysts.
Commenting on the January housing finance figures as well as the NAB business confidence index, which fell from +4.0 to a five month low of +0.9 in February, CommSec chief economist Craig James says they suggest the economy is "largely running on the spot with new home loans going backwards and businesses lacking the confidence to ramp up activity".
"Higher bank interest rates in February probably restrained business confidence. It is also disappointing that the two rate cuts by the Reserve Bank have not provided much in the way of a lift for the housing market.
"Home prices are stagnant, so the average home loan is also not budging. Eventually the combination of a low jobless rate, flat home prices, tight rental markets and stable interest rates will lead to a wave of new home buyers. Builders will hope this happens sooner, not later," James says.
In value terms owner-occupier mortgages commitments were flat at $14.15 billion.
Among the major housing markets, Western Australian was the strongest, with a 3.8% increase in owner-occupier mortgage commitments in January, followed by South Australia (up 1.3%) and Victoria (0.9%), with Queensland mortgage growth flat.
The struggling Tasmanian market received a boost with a 3.2% rise in owner-occupier mortgage commitments.
In total the number of loans for the purchase of established dwellings fell 1.2% to 40,825.
The total value of mortgage commitments excluding alterations and additions fell 2.3% to $20.7 billion on a seasonally adjusted basis, according to the latest ABS figures.
Fixed loans for investment purposes fell 7.1% to $6.58 billion.
New home lending remained flat with the number of loans for the purchase of new dwellings down 6% to 1,953 while the number of construction loans up just 0.2% to 4,990.
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NSW leads drop in mortgage lending in January: ABS

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Gold Coast apartment prices improved by 5.3% during the December 2011 quarter to a median price of $350,000, according to the latest figures from Real Estate Institute of Queensland.
At the same time Ray White chairman Brian White reports that the group’s Surfers Paradise office, headed up by Mike Willems, was the top performer over the month.
White describes it as a “terrific achievement in such a tough market”.
“With the strengthening in buyer interest, the power of marketing continues to return great benefits to our sellers. Fewer days on market and so often a sale price to delight,” he says.
White says that a further 16 properties out of the 150 that were part of the “The Event” auction at the end of January had sold post-auction taking the total to 104.
Overall, <state>Queensland</state> was the most improved market, though White acknowledged this may be due to “the terrible conditions <place><state>Queensland</state></place> experienced in the first few months of 2011 because of floods and cyclones”.
“What was interesting was the strength of many of our regional businesses in <state><place>Queensland</place></state> – Rockhampton, Toowoomba and Gladstone being particularly prominent,” says White.
“Regional centres close to the massive investment expenditures through mining boom have seen their residential values increase nicely. For example, <place><placename>Gladstone</placename><placetype>City</placetype></place> median house price is up to over $482,000, 32% up from 12 months ago.” Ray White’s strongest <city><place>Brisbane</place></city> office was the riverside suburb of Bulimba.
REIQ figures show a 2011 median price of $510,000 for Bulimba, virtually unchanged from $509,500 recorded in 2011. Overall the median unit and townhouse price in <city><place>Brisbane</place></city> increased 2% to an even $400,000 during the December quarter.
According to the REIQ, median price reductions were recorded in some regional areas, however the unit and townhouse market in these regions is historically much smaller than their housing market and is more prone to median price fluctuations on a quarterly basis.
<place><placename>Fraser</placename><placename>Coast</placename></place>, for example, registered a median unit price fall of 15.6% to $270,000 over the December quarter, however this was because there was a reduction in the number of new and waterfront properties sold compared with the previous quarter. For the year ending December its median unit price was steady.
An increase in the preliminary numbers of unit sales was recorded on the <placename>Fraser</placename><placename>Coast</placename>, Bundaberg, Rockhampton, Townsville and <city><place>Cairns</place></city> during the quarter. With the exception of <city><place>Cairns</place></city>, all major regions posted either steady or increased median unit prices for the year ending December 2011.
‘‘What we are starting to see is that as 2011 progressed, so did confidence levels in our property market with prices beginning to strengthen,’’ says REIQ chief executive Anton Kardash. 
‘‘Many regions posted their most robust price results this quarter since prior to the natural disasters at the beginning of last year.
‘‘As we move into 2012, REIQ-accredited agencies are reporting healthier levels of enquiry, with first-home buyers and investors especially taking a keen interest in the more affordable unit and townhouse market.’’
According to reiq.com, there are more than 5,000 listings for <state><place>Queensland</place></state> units and townhouses currently for sale under $350,000. 
The numbers of first-home buyers continues to improve in <state><place>Queensland</place></state>, with the latest ABS figures showing they now represent about 20% of the market – the highest proportion for more than two years.
The softening of property prices over the past two years, as well as relatively low interest rates, is partially behind this increase in demand from first-time buyers. 
‘‘Thousands of first-home buyers brought their buying decisions forward when the first-home owners’ boost was available in late 2008 and 2009,’’ says Kardash. 
‘‘Their numbers then hit historic lows in 2010 once the boost was no longer available so what we are seeing now is a return to more normal levels of first-home buyer activity, which is very positive for our market.’’
 
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Ray White records strong February as Gold Coast apartment prices start recovery

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The Telstra store premises on Collins and Swanston streets, reputed to be one of the busiest pedestrian city corners in Melbourne, will go to auction on March 22.
The shop at 220 Collins Street measures just 65 square metres and is situated on the ground floor of the 1932 Art Deco Manchester Unity building, whose completion was said to signal to Melburnians the end of the Great Depression.
It was subsequently subdivided and sold down as individual units in 1996. The Telstra store sits in the most prominent corner position of the building, providing dual exposure to both Collins and Swanston Streets.
It brings in estimated annual net income of $543,000 (with land tax recoverable from the tenant), equating to a yield of around 5%.
The vendors of the Telstra Store were swayed to offer the property to the market after the strong result achieved at Shop 1, 55 Swanston Street in mid-2011 which sold at auctionfor a tight yield of 5.55% with the understanding that Telstra is located on a better intersection in a much more populated segment of the street.
It stands on a prime piece of Melbourne CBD real estate opposite the Town Hall, with about 15 million pedestrians filing past every ear – 50,000 each day.
<img src="/images/stories/220collins.jpg">
The store is being marketed by Josh Rutman, Mark Wizel and Max Cookes of CBRE with a price tag of $9 million plus and a guaranteed 5% annual rent increase.
Wizel expects local private investors to compete with offshore investors for the asset.
A recent report by Savills Australia found the Melbourne’s CBD retail property market to be holding up well despite the slowdown in consumer spending, with the overall vacancy rate still under 4% and street-front vacancies in the main Swanston Walk precinct at a low 1.2%.
<img style="border-style: initial; border-color: initial; float: left; margin: 5px;" src="/images/stories/220collins2.jpg">According to Savills national head of research Tony Crabb, Melbourne CBD retail remains an attractive “defensive” asset offering relatively attractive yields of 4% to 7%.
“CBD retail, in particular, has attracted multiple buyers, not only for individual stores, but also for larger enclosed centres and arcades,’’ he says.
Recent nearby sales include 255 Swanston Street, which sold for $4.9 million on yield below 4%, and 303-305 Elizabeth Street, which went for $3.2 million on a 5% yield.
The retail spot is being offloaded by ASX-listed property fund manager Charter Hall, which has held it since 1997 in one of its small unlisted retail funds.
Telstra took over from Vodafone as its tenant last year. The shopfront has not been vacant in the last 40 years.
The Manchester Unity building was the tallest building in Melbourne when it was finished in 1932.
The corner tower is built in the commercial Gothic Modern style inspired by Raymond Hood’s competition-winning Chicago Tribune Tower.
Photographs by Alistair Walsh
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Telstra store premises in Melbourne CBD has $9 million price tag

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

Lowe Living launches Jardin House in Camberwell

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

Larry Schlesinger

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