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A group of Refund franchisees are still hopeful of putting together a deal to acquire the mortgage broking business, which has been in administration since October last year.
At the same time the sale of the business to State Home Loans – announced by administrators SV Partners on February 23 – appears to have failed due to not enough franchisees willing to commit to the arrangement.
Nicolaas Wiering from Refund Home Loan Double Bay has told Property Observer he is one of the franchises working “very hard” to put a deal together.
“Things are still very quiet … but we are hopefully still among the potential buyers,” he says.
The fresh alternative attempt comes at a time that a letter has been sent to franchisees by SV Partners (and seen by <a href="https://www.brokernews.com.au/news/newsletter/123068/">Brokernews.com.au</a>) advising them that the long mooted sale to State Home Loans "now looks unlikely to proceed".
The sale to State Home Loans required “as many franchisees as possible” to continue operating as Refund franchises and to sign a “Deed of Acknowledgement and Release”.
SV Partners has told franchisees that it is exploring other options to finalise the sale but says it needs to resolve things by the end of the week or the sale will not go ahead.
"We regret the delays and major inconvenience caused to franchisees as a result; however, we can only reiterate that we are working as hard as possible to obtain a satisfactory result for franchisees and creditors," SV Partners said.
SV Partners says another potential buyer is Independent Mortgage Professionals, a NSW-based business registered as a proprietary company on 27 January of this year.
"An amended draft contract was forwarded to IMP's lawyer on Monday 5 March 2012 encapsulating the terms [under] which we understand IMP are willing to purchase the business, and we are awaiting their confirmation of whether they can proceed on the terms proposed," the administrator said.
State Home Loans, which in late February appeared to be the forerunner to acquire the Brisbane-based mortgage broking franchise founded by Wayne Ormond, is based at 4 Railway Parade, Burwood, NSW, according to ASIC. The company received its Australian Credit Licence on January 5, 2011 under the directorship of Tina Lomonaco.
Lomonaco works for non-bank mortgage lender Royal Guardian, also based at the same address.
Royal Guardian was established as a mortgage manager and originator in August 1998 by Anthony Tomazin and provides both residential and commercial finance.
ASIC records show that State Home Loans has not yet recruited any credit representatives (loan writers) and trades under the name of First State Financial Services.
A letter sent out to creditors February 23 said a deal with State Home Loans was reliant on “as many continuing franchisees as possible to agree to operate under the franchise and to sign a deed of acknowledgement and release”.
Creditors and former franchisees who don’t sign up to a new agreement with State Home Loans <a href="https://www.propertyobserver.com.au/industry-news/former-refund-franchisees-and-creditors-to-get-10%C2%A2-on-the-dollar-in-proposed-sale/2012022653558" target="_blank">will receive just 10¢ from every dollar owed under the State Home Loans proposal</a>.
Property Observer understands that aggregator Vow Financial may also be looking at acquiring the Refund business.
Vow Financial was created by the amalgamation of three mortgage broking firms National Brokers Group, The Mortgage Professionals and The Brokerage and launched February 2010 with the backing of Macquarie Bank.
The aggregator is run by former Macquarie Bank executive Tim Brown.
Macquarie Bank Limited holds a minority interest equating to less than 20% of the Vow group with the founding aggregators, independent non-executive chairman Dr Peter Neustadt and former Vow chief executive officer Zulman holding the rest of the shares. Vow was named wholesale aggregator of the year at the <a href="https://www.propertyobserver.com.au/industry-news/gladstone-mortgage-broker-wins-top-gong-at-mfaa-awards/2012031253792" target="_blank">MFAA industry awards held over the weekend</a>.
Property Observer contacted Tina Lomonaco for a comment but had not heard from her by the time of publication.
 
 
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Refund franchisees still hoping to buy business as State Home Loans deal falls through

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The serviced apartments sector is forecast to outperform the hotel sector over the next three years, according to the latest Serviced Apartments Review by Atchison Consultants.
Atchison Consultants is forecasting total returns of between 13% and 15% per annum on an ungeared basis for serviced apartments, while total returns for hotels are expected to range between 10% to 11% per annum.
“Rental growth in line with CPI is expected [for serviced apartments]. Occupancy rates will reflect growth in GDP, which will remain positive,” says the report.
However a seperate report by Jones Lang LaSalle Hotels (JLLH) says "mum and dad" investors are cautious about investing in serviced apartments due to the negative economic outlook and negative yield spread on new projects under construction.
According to JLLH there 3,712 hotel rooms under construction at the end of September last year of which about a third were serviced apartments.
JLLH's managing director of strategic advisory Troy Craig says serviced apartments would have to show a positive yield spread for at least three years to tempt back retail investors.
On the other hand he says the growth in the apartment-style product shows consumer eagerness to "trade location for space, if offered at a similar price point" representing "an important trend for the industry, particurlarly given Australia's ageing hotel stock".
Paul Constantinou, chairman of Quest Serviced Apartments, which has the largest share of a very fragmented market (6%), says investors collectively own more than 5,000 individual Quest apartments.
However, he says these investments have to date been “unstructured and very disparate”, sourced and sold through a channels ranging from real estate agents and financial planners to the developers themselves.
Quest has set up a specialist property investment arm called Quest Properties to help fund expansion of its portfolio and “wrestle back control.
“We are at the tipping point now where in order to grow at the rate required to meet corporate demand for our product we need a dedicated division to facilitate new investment in our business,” he says.
Constantinou says serviced apartments look and feel like residential investments, without the typical frustrations like vacancies, repair and maintenance obligations, body corporate charges and real estate agent and property management fees.
He says the Quest offering promises a fixed 6.5% income return plus capital growth, no management fees and with maintenance managed by Quest.
“It’s a true set-and-forget investment,” he says.
The appeal of serviced apartments has also caught the eye of Harry Triguboff’s Meriton group, which plans to build <a href="https://www.propertyobserver.com.au/developments/harry-triguboff-s-meriton-group-to-build-700-serviced-apartments-next-year-across-australia/2011120752737">700 serviced apartments across Australia in 2012</a> and has recently acquired two sites in Sydney, which will include serviced apartments in the mix.
The sector is also set to benefit from increasing numbers of business travellers to Australia, which according to Atchison Consultants now account for 50% of guests who stay in serviced apartments. 
Departure and arrival data from the ABS shows a 10% increase in the number of business travellers over the past year, with 845,000 coming in 2011 compared with 768,000 in 2010.
This is above the 10 year average annual rate of corporate traveller growth of 4.6%.
<img src="/images/stories/atchison1.gif">
This growth in corporate visitors <a href="https://www.propertyobserver.com.au/leisure/dollar-hurting-tourism-especially-queensland-coastal-hotel-occupancy-rba/2012030653721" target="_blank">was highlighted this month</a> by assistant RBA governor Philip Lowe, who said conditions were “noticeably stronger in the accommodation sectors in some of the large cities, which are benefiting from an increase in business travel and an apparent shift in preferences by overseas tourists for city-based experiences”.
According to BIS Shrapnel chief economist Frank Gelber, capital city hotels (which compete with serviced apartments) will be the best-performing commercial property sector in 2012.
“Why? In a nutshell because business travel has recovered. Both domestic and inbound,’ Gelber said in a column for The Australian.
“Performance of serviced apartments relies on continuing growth in corporate travel,” say Ken Smith and Ken Atchison, authors of the Atchison report. 
“[The serviced apartments sector] has a competitive cost advantage over hotels as its nearest competitor in corporate accommodation, which is beneficial at a time when both business and consumer sentiment is fragile,” they say. 
In line with a positive earnings trend, serviced apartments have attracted a growing share of the accommodation market.
<img src="/images/stories/atchison2.gif">
In addition, demand for serviced apartments as measured by room nights sold was significantly higher than hotels and motels for years between 1999 and 2008, with the exception of 2007. 
The number of room nights sold in serviced apartments as of 2011 was 3.3 million, representing a 72% increase since 2001.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/atchison3.gif"><img src="/images/stories/atchison3thumb.gif"></a>
The sector is highly fragmented, and no one player has a significant market share. 
The biggest players are Quest (6%), Oaks Hotels and Resorts (5.7%), the Mantra Group (5.1%) and Mirvac (3.2%). 
According to Atchison Consultants, since the beginning of 2009 occupancy rates have averaged above 80%, and this high occupancy is expected to continue in the absence of new supply. 
While the sector dates back to the 1970s, the real growth spurt occurred in the build-up to the Sydney Olympics with the number of establishments with 15 rooms or more growing from 479 in 1998 to 973 by March 2011. 
“Investment attributes of serviced apartments include direct property exposure with a relatively affordable price entry point usually on a long-term lease with contracted periodic rental uplift, tax and depreciation benefits and alternative use through conversion to residential,” says the Atchison Consultants review. 
Under most arrangements the business risk is borne by the accommodation business, which leases the apartment from the investor with average lease terms spanning five to 10 years.
 
According to IBISWorld, as of 2011, the industry comprised more than 1,200 operators with more than 1,300 establishments. At the end of the 2011 financial year, the industry employed over 16,000 people, generating approximately $2.3 billion of revenue.  The estimated value of the serviced apartment sector is $8 billion. 
Property investors can participate in the serviced apartments sector by purchasing a strata title and leasing it to an accommodation business. Serviced apartments can also be incorporated as part of a self-managed super fund.
Photograph courtesy of <a target="_blank" href="https://flickr.com/">Flickr</a>.
 
 
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Serviced apartments to outperform hotels in next three years: Atchison

The growing numbers of Chinese and Indian migrants in Australia means property investors need to consider the cultural sensitivity of the residential property they purchase to ensure they maximise the resell value, says demographer Bernard Salt.

Speaking at the WBP Property Outlook breakfast last week, Salt said that during the past decade around 500,000 Indians and 500,000 Chinese migrants have moved to Australia.

Salt says these ethnicities are starting to “shape the Australian residential property market” in the same way that the arrival of Italian immigrants in the 1970s created the Anglo-European culture of eating out on the pavement, emulating the “piazza and the plaza”.

“I live in eastern suburbs in Camberwell. Our local Safeway closed in 1998 for about two weeks for renovations. When I went back there when it opened again, I saw something I had never seen before: an entire bay had been given over to bok choy.

“It is used in Vietnamese cooking. My point is the Vietnamese arrived in Australia in the mid-1980s. In a single decade such had been their impact that they had shifted the palate of mainstream Australia to the point that Woolies now stocks bok choy.

“Over the years Woolies has added pak choy, choy sum … a whole family of choys.

“The point is it was never the plan to sell bok choy to the Vietnamese, it was the business acumen of saying that the Asian influence will shift by osmosis the palate of ethnic Australia,” says Salt.

“How might these Asian influences shape the residential property market?

“The Chinese for instance believe in the principle of feng shui … that you don’t have the front door aligned with the back door, that’s bad energy because the energy goes straight through the house.”

Salt says while he and other property investors might not be swayed by feng shui now, if you want to maximize the resale value of your property in 2018 you must configure your property to reflect the principles of feng shui.

“We could find by osmosis that the Australian property industry could reflect or absorb the cultural preferences and predispositions of these ethnic influences,” he says.

Salt says a salesperson with a housing group in Canberra told him that Indians will always ask if the cooktop is facing east and don’t like their bedhead facing west because it’s the same direction they bury their dead.

These follows the ancient Hindu principles of Vaastu, which says that the&nbsp;kitchen should face south-east, the direction of the God of Fire. (<a href="https://www.truthstar.com/vaastushastra/vaastuforhome.asp">For more on Vaastu click here</a>).

Salt also says the children Chinese and Indian migrants are highly “aspirational” and will be looking to acquire properties in sought-after areas.

The principles of feng shui are also having an impact on the commercial property market, with Savills Australia agents Daniel Kelly and Lynton Williams recently negotiating a lease to a Chinese bathroom supplies importer and distributor for an office and warehouse in Noble Park.

The Savills agents said the tenant was “also interested in the buildings’ capacity to achieve the good fortune attributed to feng shui design criteria”.

Chinese and Indian design principles will shape Australia’s property markets: Bernard Salt

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Stockland has increased its presence in the Townsville retail market after purchasing Centro Townsville shopping centre for $36.5 million. 
<a href="https://www.propertyobserver.com.au/retail/centro-seeks-buyer-for-townsville-centre/2011090651453" target="_blank">The 13,650-square-metre sub-regional Centro centre</a> stands on 4.2 hectares of land and includes Kmart, Coles, Commonwealth Bank and 25 specialty shops. 
The sale of the centre was negotiated by Peter Tyson and Jon Tyson of Savills in a joint campaign with Knight Frank Townsville's John Quinlan.
Tyson says the centre generated solid interest from the market.
"The asset was competitively sought by a number of institutional and private investors," he says.
“Over 100 buyer enquiries were fielded during the marketing campaign, with six competitive bids lodged, including two listed entities and four private investors.
“The primary attractions of the centre included the simplicity and compact nature of the asset, strong security of income underpinned by two blue-chip anchors, a favourable price point (under $50 million) and the obvious strengths of the Townsville economy."
Centro Townsville was valued at $35.5 million in April this year, up 4.5% from a December 2010 valuation of $34 million and last sold for $20.75 million in November 2001. 
CEO for commercial property John Schroder says Townsville is a key growth market and Centro Townsville is a strong strategic and complementary fit with Stockland’s existing centre, which is currently being redeveloped. 
“The purchase represents good value for Stockland with an initial yield of 8.3% and opportunities to create leasing, branding and operational synergies with our existing centre,” Schroder says. 
“When finished later this year the redeveloped Stockland Townsville will boast 46,000 square metres of lettable space including the region’s first Myer department store and many specialty shops new to Townsville. With this acquisition, we will be managing a precinct with 60,000 square metres of retail space, which will allow us to deliver a great community hub for customers,” he says. 
“Retail sales are projected to grow strongly in Townsville over the next decade.” 
The Centro stands directly opposite Stockland Townsville, which is currently being redeveloped into a 46,000-square-metre shopping centre at a cost of $175 million.
It will have an estimated completion value of $385 million and deliver an estimated internal rate of return of 11.5%. 
The diversified property group says the acquisition further strengthens its commitment “to this growing region in Queensland”.
In its interim results released last month, Stockland CEO Matthew Quinn said the property group would continue to sell its commercial and industrial assets and use the proceeds to reinvest in higher-yielding and less volatile retail assets.
Retail assets have generated returns of 10% for Stockland, while industrial assets have generated 8.3% and office assets 7% return.
 
 
 
 
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Stockland buys Centro Townsville directly opposite current Stockland centre

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Ruan Burger from Home Loans Etc has been named mortgage broker of the year at the 2012 Mortgage and Finance Association of Australia (MFAA) Excellence Awards held in Sydney over the weekend. 
Burger also picked up the MFAA Excellence Award of Distinction, chosen from all the individual award winners. 
Home Loans Etc operates from offices in the mining boom town of Gladstone as well as in Brisbane. 
Speaking to Property Observer, Burger says the firm only set up in Gladstone in 2007 but has already become a household name in what is a “great market”. 
“Gladstone is not the biggest of places and with the kind of rental yields on offer here you can’t go too far wrong,” he says. 
Despite the high yields, Burger says a lot of the loans his team writes are for owner-occupiers. 
“There are a lot of people moving here. The town has a lot to offer. People are saying, ‘Why not bring the whole family’,” he says. 
Burger says he believes he won the award because the business returned good numbers as well as because of its involvement in community projects. 
“We don’t just write loans,” says Burger, who originally hails from Windhoek, Namibia. 
Listed mortgage broking franchise Mortgage Choice picked up two MFAA awards. 
It was named retail aggregator/originator of the year of the year for the sixth time in eight years, defeating other finalists John Symond’s Aussie Home Loans and Smartline, while Glenelg loan consultant Keith added to the company’s success by winning the individual achievement award. 
AFG was named retail and wholesale aggregator/originator of the year, ANZ was named best major bank lender, while Bankwest picked up the prize for best tier two lender. 
MFAA chief executive officer Phil Naylor says the awards recognise mortgage and finance professionals who “display a high degree of professionalism, commitment to service, integrity, ethical conduct and innovation. 
“Winners have also demonstrated a contribution to their local community,” he says. 
The full list of 2012 MFAA Excellence Award winners is: 
The MFAA Excellence Award of Distinction 2012 
<ul>
<li>Ruan Burger, Home Loans Etc, Gladstone  QLD </li>
</ul>
Individual Awards: 
<ul>
<li>
Achievement Award: Keith Caine, Mortgage Choice, Glenelg East, SA 
</li>
<li>
Mortgage Broker Of The Year: Ruan Burger, Home Loans Etc, Gladstone, QLD</li>
<li>
Finance Broker of The Year: Daniel Zadnik, Hawthorn Finance, Burwood, VIC.</li>
<li>
Business Development Manager of the Year: Fiona Brown, Connective OSN, Sydney, NSW</li>
</ul>
 
Business Awards:
 
<ul>
<li>
Lender of the Year (Tier 1): ANZ Bank</li>
<li>
Lender of the Year (Tier 2):Bankwest </li>
<li>
Finance Broking Business: Horizon Financial, Cairns QLD </li>
<li>
Retail &amp; Wholesale Aggregator/Originator: AFG, West Perth, WA </li>
<li>
Mortgage Broking Business: 2-5 loan writers: Great Aussie Dream, Glenmore Park, NSW</li>
<li>
Mortgage Broking Business: 6+ loan writers: Bernie Lewis, Mile End, SA</li>
<li>
Mortgage Manager of the Year &lt;30 employees: State Custodians Mortgage Company, Toronto, NSW</li>
<li>
Mortgage Manager of the Year 30+ employees: Homeloans Ltd, Perth, WA</li>
<li>
Retail Aggregator/Originator: Mortgage Choice, Sydney, NSW</li>
<li>
Support Services: Stargate Group, Richmond, VIC</li>
<li>
Wholesale Aggregator/Originator: Vow Financial, Sydney, NSW</li>
</ul>
 
 
 
 
 
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Gladstone mortgage broker wins top gong at MFAA awards

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News that the Baillieu government is planning to encourage the building of high-rise towers in regional centres of Victoria has sparked concern from mayor of Ballarat as well as the state opposition.
Victorian Planning Minister Matthew Guy has revealed plans for future high-rise towers and residential hubs, including a proposal for a Docklands-like development in Geelong.
The state government’s planning department has already drawn up proposed maps of where high-density developments could be allowed, with the regional centres of Ballarat, Bendigo and Geelong earmarked for development.
Guy told the Herald Sun on Saturday such urban development would turn the CBDs of Geelong, Ballarat and Bendigo into “terrific residential hubs where there are more restaurants, where there is more activity and less necessity to drive to work”.
However, the idea of Manhattan-style living in regional Victoria has not been welcomed by Ballarat mayor Mark Harris, who says such plans would not receive any enthusiasm from the Ballarat City Council.
Harris says he has spoken to Guy, who has assured him that Ballarat City Council would have control over its own destiny.
“The minister phoned me on Saturday to reassure that this zoning concept won’t be mandatory for Ballarat or Bendigo,” Harris told The Ballarat Courier.
“While there may be elements of it that we may choose to look at more closely, there is no enthusiasm in this council to look at that sort of zoning as appropriate for Ballarat at all.”
The proposal has also been slammed by opposition spokesman for planning and sustainable growth Brian Tee, who says the Ballarat community should be “very afraid of what is at stake”.
Guy has previously said he would like to increase the size of the Melbourne CBD by five times its current size.
 
 
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Ballarat mayor down on Matthew Guy's regional Victoria high-rise living proposal

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Predictions by credit rating agency Standard &amp; Poor’s that Australian house prices could fall 20% this year if Chinese growth stalls to 5% have been rubbished by Fairfax financial commentator Michael Pascoe.
S&amp;P says there is a <a target="_blank" href="/news">one in 10 chance of the Chinese economy suffering a hard landing</a> (growth of 5% or less), which would result in unemployment doubling to 11.3% in Australia and trigger a sharp decline in Australian house prices of 20% or more.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/sandpmarch12.gif"><img src="/images/stories/sandpmarch12thumb.gif"></a>
Pascoe says S&amp;P's form with “crystal ball gazing” has been “less than sparkling”.
“The firm has major credibility problems for its role in helping facilitate the global financial crisis by giving absolute top-notch AAA credit ratings to toxic junk.
“It does not differ from its peers in having capital-F fails on its scorecard for any number of credit rating disasters. It is easy to form the opinion it might now be trying a little hard to make up for lost trillions by sounding dire about anything and everything,” says Pascoe.
Even if China’s economy falls 5%, Pascoe says the flow-on effect of an Australian recession is by no means a sure thing, given “all the fiscal and monetary ammunition we have in store”.
“And the evidence is that we still wouldn't suffer a 20% plunge in house prices. In our last real recession, house prices didn't fall despite high unemployment and the tear-inducing interest rates that precipitated it,” he says.
Lastly, Pascoe argues that Chinese growth settling in at 8% “is both desirable and inevitable”. 
“It is what has to happen when you are the world's second-largest economy. If you really want to scare the horses, you could highlight the joint report by the World Bank and China's Development Research Centre that very credibly forecasts China's GDP growth slowing to 7% in the second half of this decade and 5% in the second half of the next. 
“That would be a good outcome that represents a massive increase in wealth and consumption, not to mention ongoing demand for natural resources, albeit with a lower steel intensity. Someone should tell S&amp;P,” he says. 
In its China Australia Housing report S&amp;P says there is a 25% chance of a “medium landing” for the Chinese economy – growth of 7%.
In this scenario, Australian GDP would be just 1.5%, inflation 1.3%, unemployment would rise to 7.2%, house price could fall by more than 10% and interest rates would drop between 2% and 2.5%. 
In S&amp;P’s most likely scenario – a “soft landing” of 8% growth – housing is forecast to decline by more than 5% (in line with other forecasts), Australian GDP would be 3.3%, inflation 2.6%, unemployment would be at  5.2%  and interest rates would be between 3.5% and 4.1%. 
Last year the Chinese economy grew by 9.2%.
 
 
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S&P warning of Australian housing market collapse lacks credibility: Michael Pascoe

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Four-fifths of the Eclipse Tower, the tallest office building in Parramatta, has now been leased as construction of the 19-storey structure reached its highest point. 
Joint developers Leighton Properties and Grosvenor Fund Management Australia have secured pre-commitments from Deloitte, QBE Insurance and Landcom. 
The 88-metre tower being built at 60 Station Street in the Parramatta CBD by Leighton subsidiary John Holland at a cost of $170 million is the only A-grade commercial building in Parramatta. 
Due for completion in August 2012, the building is registered for a green star office design v2 rating and is targeting a five-star green star rating and a five-star NABERS energy rating. 
According to the most recent Property Council of Australia office report, Parramatta has a vacancy rate of around 9%, below that of some fringe Sydney CBD market including Chatswood and Crows Nest/St Leonards.
In addition only 25,000 square metres of new office space is scheduled to be built in Parramatta over the next two years – growth of 3.7%.
<img src="/images/stories/eclipse.jpg">
The topping-out ceremony was attended by New South Wales premier and minister for western Sydney Barry O'Farrell.
"Parramatta is the geographic heart of Sydney. It’s wonderful people will have the opportunity to work where they live. The development has provided hundreds of jobs and long may it continue to do so into the future," he said.
"We have a strong commitment to the commercial evolution of the Parramatta CBD, and thanks to the building's proximity to key transport links, entertainment and recreation hubs, it will also provide an enhanced work and life balance for workers,” said Mark Gray, managing director of Leighton Properties. 
The Eclipse Tower is Leighton’s third commercial building in Parramatta. 
"Office rental rates in Parramatta are approximately half of the price of comparable quality stock in the Sydney CBD. However, for many companies it's no longer just about finding a competitive rental deal and cutting occupancy costs by relocating or growing their operations in Parramatta, said Anthony Lombardo, head of office development at Grosvenor Fund Management Australia. 
"It's also about having a genuine strategic need to be located in close proximity to Western Sydney in order to capitalise on emerging growth opportunities in this exciting and dynamic region," he added. 
Eclipse Tower was designed by Fitzpatrick and Partners, which won Parramatta's first design competition under the Parramatta City Council's new city centre plan.
 
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Parramatta’s tallest tower, Eclipse, 80% leased as construction nearing completion

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The lowest three-year fixed-rate mortgage currently available is 5.94% on offer from the Holiday Coast Credit Union, which primarily services the Holiday Coast and Hunter regions of NSW and has about 32,000 members.
The most recent lender to cut its fixed rates was credit union CUA, which cut the interest rate on its three-year fixed-rate loan on February 13, from 6.34% to 5.95%.
Recent figures put out by mortgage brokers AFG and Mortgage Choice show that about one in five borrowers are taking out a fixed mortgage following major cuts to these products by lenders in 2011.
Here’s a rundown of the cheapest three-year fixed rate offerings on the market at present (available nationally, minimum loan amount $250,000):
5.94%
Three-year fixed rate of Holiday Coast Credit Union
5.95%
Three-year fixed rate of non-bank lender Homestar Finance
5.99%
Three-year fixed rate of Newcastle Permanent Building Society, Heritage Bank, AMP Bank and Bank of Queensland 6.09%
Three-year fixed rate of IMB Building Society
6.14%
Three-year fixed rate of Suncorp
6.19%
Three-year fixed rate of SGE Credit Union, HSBC, Greater Building Society and ING Direct.
6.24%
Three-year fixed rate of NAB, St.George, Bank of Melbourne and BankSA
6.25%
Three-year fixed rate of non-bank lender Myrate
6.33%
Three-year fixed rate of non-bank lender of the Commonwealth Bank.
6.34%
Three-year fixed rate of ANZ
6.39%
Three-year fixed rate of Westpac
6.79%
Three-year fixed rate of BankWest
 
Rates correct as of March 9, 2012
 Here is a list of the most recent standard variable rates of the big lenders.
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The lowest three-year fixed-rate mortgages as ANZ lifts to 6.34%

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ANZ has left its variable mortgage rate unchanged at 7.36% today following its interest rate decision independent of the RBA.

However, it has lifted its three-year fixed mortgage rate by 20 basis points to 6.34%.

The fixed rate increase will cost new ANZ borrowers who take out the loan an extra $440 a year on the average $300,000 mortgage.

ANZ chief executive Australia Philip Chronican says the bank’s monthly pricing decisions remain “difficult”.  

“We are walking a tightrope between our customers’ interest in keeping rates as low as  possible and the commercial reality that while monthly funding costs go up and down, the upward trend is likely to continue as new funding is still coming on at a wider spread to the cash rate than the funding it is replacing,” he says.

“Given the structural shift that has occurred in the bank funding environment since 2008, including the additional cost of holding higher levels of capital and liquidity, we are working hard to ensure our commercial response helps our customers adjust and ensures we are competitive. 

“Just as we absorbed part of the higher funding cost last month, and while funding pressures still exist, on balance we took the view that stability was important for our variable rate mortgage and small business customers this month."

Suncorp also lifted its fixed rates today raising its two-year fixed home loan rates by 16 basis points today to 6.14%.

Last month, 45 lenders increased mortgage rates independently of the RBA.

Bank of Queensland remains the only lender at time of writing to have lifted variable rates since Tuesday's RBA decision to leave rates on hold in March.
 
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ANZ leaves variable rates unchanged but lifts fixed rates by 20 basis points

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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