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Westpac has appointed George Frazis to lead its NSW subsidiary St George Bank. 
Frazis, the current head of Westpac New Zealand, will replace Rob Chapman, who is leaving the group having been CEO of St George since 2010. Before that he was managing director of another Westpac subsidiary, BankSA. 
Peter Clare, chief operating officer of Westpac’s Australian financial services business, will take over from Frazis as chief executive officer of Westpac New Zealand.
 
Both appointments were announced by Westpac CEO Gail Kelly, who says Westpac recognises “the strong talent pool within the existing executive team”. 
“George has done an excellent job over the past three-and-a half years in improving the performance of the New Zealand business, and I am pleased with the results he is delivering,” she says.
Kelly says Clare is one of the group’s most seasoned executives, having held senior leadership positions at St George Banking Group, Westpac and formerly the Commonwealth Bank. 
“With strong personal ties to New Zealand, Peter will bring great enthusiasm and energy to his new role. His blend of strategic and operational experience will ensure Westpac New Zealand continues to put in place a customer relationship-focused business strategy,” says Kelly. 
Kelly thanked Chapman for his significant contribution in leading St George Banking Group and BankSA. 
The appointments will be effective from April 2, 2012. 
Clare’s appointment is subject to appropriate regulatory approval.
 
 
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George Frazis named CEO of St George Bank

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AMP Capital Investors is in the process of growing its commercial lending arm following the withdrawal of major lenders and offshore lenders from this arena.
The investment manager has an investment mandate of $190 million from AXA Life following the merger of AXA and AMP in 2010, but it is looking to expand the cash pool to $400 million by bringing other superannuation funds on board.
AMP’s entry into commercial lending follows a growing trend of other non-bank lenders offering commercial loans.
Major lenders have pulled back from commercial finance due to the stricter liquidity requirements under new global Basel II banking rules.
Linda Cunningham, chief manager of commercial lending at AMP Capital, has told the Australian Financial Review that any lending done by the fund will be of a conservative nature, with a strong focus on the “quality of the property”.
AMP will lend at loan-to-value ratios of around 54% with interest rates of 2.5% to 3% – slightly higher than the rates of the big four banks.
The fund will consider lending across all commercial sectors except for residential and land development but will not write any loans that mature past March 2018, when the fund reaches its investment horizon.
To date the fund has provided mortgages at an average size of $10 million, but has the capacity to extend loans of up to $35 million on a single property.
 
 
 
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AMP looking to fund more commercial property investments

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The disused Pasadena motel at the end of Church Point featuring views over southern Pittwater has been listed for auction on March 28.
Standing opposite Ku-ring-gai National Park at 1858 Church Point, the Peter Stutchbury-designed Pasadena sits on land measuring 632 square metres and was once a thriving motel and function centre popular for weddings and social functions.
The motel has been one of Sydney’s sought-after wedding venues, with wedding parties disembarking via boat or seaplane for their nuptials.
Its prime waterfront position overlooking southern Pittwater offers views towards Scotland Island and Lovett Bay to the north, Bilgola to the east and Bayview to the south east.
The Pasadena is situated within Sydney’s northern beaches, approximately 32 kilometres north of Sydney CBD and four kilometres north west of Mona Vale, overlooking southern Pittwater. 
The hotel is being marketed Matthew Meynell and Henry Burke from Colliers International in conjunction with Jack Elsegood from Domain Residential on behalf of receivers Grant Thornton and is being sold as “vacant possession ready for development”.
Meynell says there has been interest from restaurateurs, developers and conference organiser and expects offers “north of $2 million”. He says it has a number of development applications on it.
According to the Manly Daily, the property’s owners, the Romeo family, attempted to sell the waterfront property in 2010, after years of trying unsuccessfully to redevelop the site.
Burke says the Pasadena has long been the talk of community discussions by Church Point and Scotland Island locals. 
“The residents have long wanted a building of social significance that enriches the local area and fits well with the Pittwater Council’s plan of management for the future development of Church Point,” he says. 
“We are already fielding interest from developers looking to build a landmark waterside property and business operators looking to establish a restaurant or function centre within a highly sought-after waterside location on Sydney’s Pittwater.” 
“The Church Point area is one of the most beautiful areas on the northern beaches and will benefit greatly from a revamped building showcasing the natural beauty of the area,” he says.
It has a previously approved 2005 development application to demolish the existing building and build a “shop top housing development comprised of basement car parking, restaurant, three shops and three residential units”.
The hotel last sold in $3.6 million in 1989 at a time when demand for such properties was booming.
The land is zoned 3 (C) Neighbourhood Business ‘C’ under the Pittwater Local Environment Plan, (LEP) with the council estimating that a new LEP will be drafted within 12 to 18 months. 
The ground floor consists of a disused function area with a commercial kitchen and bar and three retail shops facing Pittwater Road, which are currently vacant. They were previously occupied by the artist-run Gone Fishing Gallery, a real estate agency and storage for the local bottle shop. 
The second level consists of 12 single motel rooms with ensuites. The top floor consists of a laundry room, water heating systems and open-plan roof with a small enclosed sitting room.
 
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Pasadena on Pittwater listed for mortgagee auction

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Suburbs close to beaches and the harbour feature prominently in John McGrath’s list of top 10 capital growth hotspots for 2012.
Most notably, Coogee in Sydney’s eastern suburbs is the only location included as a hotspot for houses and units.
Coogee is eight kilometres from the Sydney CBD and according to RP Data has a median house price of $1.69 million and a median unit price of $655,000.
The suburb includes many Art Deco and period-style homes and apartment blocks as well as a vibrant café-lined shopping strip along Coogee Bay Road and Arden Street.
It has also proved popular among rugby league players, with bad boy Todd Carney owning property in Coogee and Rabbitohs star Greg Inglis recently purchasing a semi-detached house in February.
Coogee is also home to one of the eastern beaches’ most well-known and notorious watering holes, the Coogee Bay Hotel , which currently ranks in the top 20 of most violent pub in Australia.
A $150 million multi-storey redevelopment of the hotel was approved by the previous Labor government under Part 3A planning rules that allowed the minister for planning to determine planning applications without consulting local councils.
The O’Farrell government scrapped Part 3A planning rules when it came into power last year and returned the hotel redevelopment application to the council, much to the relief of nearby residents.
Last year McGrath Real Estate set up a new Coogee office to expand the group’s presence in the eastern beaches and south-east suburbs of Sydney.
According to McGrath, eastern beach suburbs like Coogee contain some of the most valuable real estate in Sydney mixed with a high number of 1960s and ’70s apartments.
“The desirability of living close to the beach and city means that houses and units are being sought by a new wave of buyers,” McGrath says.
The other 10 capital growth suburbs picked by McGrath included houses in Hunters Hill, the suburb on a small peninsula that separates the Lane Cove River and Parramatta River, apartments in Cammeray on the lower north shore.
Seven out of the 10 suburbs are within 10 kilometres of the Sydney CBD.
“Buying residential real estate within 10 kilometres of the CBD in Sydney is an excellent choice, with outer-suburban areas not doing as well as city hubs and the coastal belt,” says McGrath.
The only suburb McGrath picks that is a long haul from the CBD is Palm Beach, most famous as the exterior shot for Summer Bay in Home and Away, which is a 41-kilometre drive from the centre of Sydney.
All the housing suburbs have medians under $2 million while the apartments are priced under $700,000.
“The under-$1 million market is still the strongest segment, but there’s new interest up to $2 million and even beyond in Sydney and Melbourne where higher-end buyers weren’t around as much in 2011,” he says.
John McGrath’s Top Sydney Metro Picks – Best Buys for Future Growth (Houses)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="111" valign="top">
 
</td>
<td width="76" valign="top">
Location
</td>
<td width="77" valign="top">
Distance from CBD
</td>
<td width="77" valign="top">
Median price
</td>
<td width="88" valign="top">
Median weekly rent
</td>
<td width="88" valign="top">
Yield
</td>
</tr>
<tr>
<td width="111" valign="top">
Balmain East
</td>
<td width="76" valign="top">
Inner West
</td>
<td width="77" valign="top">
5 kms
</td>
<td width="77" valign="top">
$1.73 m
</td>
<td width="88" valign="top">
$1,350
</td>
<td width="88" valign="top">
4.1%
</td>
</tr>
<tr>
<td width="111" valign="top">
Coogee
</td>
<td width="76" valign="top">
Eastern Suburbs
</td>
<td width="77" valign="top">
8 kms
</td>
<td width="77" valign="top">
$1.69 m
</td>
<td width="88" valign="top">
$800
</td>
<td width="88" valign="top">
2.5%
</td>
</tr>
<tr>
<td width="111" valign="top">
Hunters Hill
</td>
<td width="76" valign="top">
North West
</td>
<td width="77" valign="top">
9 kms
</td>
<td width="77" valign="top">
$1.55 m
</td>
<td width="88" valign="top">
$1,000
</td>
<td width="88" valign="top">
3.4%
</td>
</tr>
<tr>
<td width="111" valign="top">
Killara
</td>
<td width="76" valign="top">
North Shore
</td>
<td width="77" valign="top">
14 kms
</td>
<td width="77" valign="top">
$1.45 m
</td>
<td width="88" valign="top">
$1,000
</td>
<td width="88" valign="top">
3.6%
</td>
</tr>
<tr>
<td width="111" valign="top">
Palm Beach
</td>
<td width="76" valign="top">
Northern Beach
</td>
<td width="77" valign="top">
41 kms
</td>
<td width="77" valign="top">
$1.55 m
</td>
<td width="88" valign="top">
$895
</td>
<td width="88" valign="top">
3%
</td>
</tr>
</tbody></table>
All data sourced from RP Data
John McGrath’s Top Sydney Metro Picks – Best Buys for Future Growth (Units)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="111" valign="top">
 
</td>
<td width="76" valign="top">
Location
</td>
<td width="77" valign="top">
Distance from CBD
</td>
<td width="88" valign="top">
Median price
</td>
<td width="88" valign="top">
Median rent
</td>
<td width="88" valign="top">
Yield
</td>
</tr>
<tr>
<td width="111" valign="top">
Cammeray
</td>
<td width="76" valign="top">
Lower North Shore
</td>
<td width="77" valign="top">
5 kms
</td>
<td width="88" valign="top">
$608,000
</td>
<td width="88" valign="top">
$550
</td>
<td width="88" valign="top">
4.7%
</td>
</tr>
<tr>
<td width="111" valign="top">
Coogee
</td>
<td width="76" valign="top">
Eastern Suburbs
</td>
<td width="77" valign="top">
8 kms
</td>
<td width="88" valign="top">
$655,000
</td>
<td width="88" valign="top">
$585
</td>
<td width="88" valign="top">
4.6%
</td>
</tr>
<tr>
<td width="111" valign="top">
Monterey
</td>
<td width="76" valign="top">
Southern Beaches
</td>
<td width="77" valign="top">
15 kms
</td>
<td width="88" valign="top">
$470,000
</td>
<td width="88" valign="top">
$410
</td>
<td width="88" valign="top">
4.5%
</td>
</tr>
<tr>
<td width="111" valign="top">
Ryde
</td>
<td width="76" valign="top">
Northern Suburbs
</td>
<td width="77" valign="top">
15 kms
</td>
<td width="88" valign="top">
$450,000
</td>
<td width="88" valign="top">
$380
</td>
<td width="88" valign="top">
4.4%
</td>
</tr>
<tr>
<td width="111" valign="top">
Sydney CBD
</td>
<td width="76" valign="top">
 
</td>
<td width="77" valign="top">
 
</td>
<td width="88" valign="top">
$535,000
</td>
<td width="88" valign="top">
$650
</td>
<td width="88" valign="top">
6.3%
</td>
</tr>
</tbody></table>
All data sourced from RP Data.
Photograph of Coogee Surf Lifesaving Club by Sacha Fernandez<a href="https://www.flickr.com/people/sacharules/"></a>, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
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Coogee a hotspot, and not just for reformed bad boys of rugby

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The growing savings culture of Australian households has been graphically revealed in the latest RBA Chart Pack, which shows the household savings ratio at a near 25-year high.
<img src="/images/stories/rbamarch81.jpg">
At the same time, net household wealth has declined to well below pre-GFC levels, matched by a steady fall in the value of residential property relative to household income and an increase in household debt from 50% to 150% of income.
<img src="/images/stories/rbamarch82.jpg">
A graph on credit growth by sector shows how mortgage lending growth has fallen since 2004, while personal lending continues to contract (as households deleverage). Business lending seems to be rising up from the doldrums.
<img src="/images/stories/rbamarch83.jpg">
The chart pack also shows the collapse in demand for new homes, with detached housing approvals falling steadily since about 2008. The chart also shows the long-running volatile nature of unit approvals.
<img src="/images/stories/rbamarch84.jpg">
 
 
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Household savings ratio at near 25-year high as wealth and mortgage growth decline: RBA charts

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Investor demand is strengthening for Melbourne property, according to Monique Sasson Wakelin, director of Wakelin Property Advisory, but she says there will be a great diversity in price performance across the city in 2012.
“In the Melbourne metro region demand will return for period and older-style houses in the inner north in an arch extending from Moonee Ponds to Preston,” Sasson Wakelin says in a <a href="https://wakelin.com.au/blog/view/id:35/title:Recording+of+2012+property+market+outlook+now+available" target="_blank">webinar looking at prospects for 2012</a>.
She also expects increasing demand for well-established apartments in low-rise complexes in Melbourne’s inner south east (suburbs include South Yarra, Toorak, Malvern and Armadale) and inner bayside regions (suburbs include Brighton, Black Rock, Cheltenham and Sandringham).
“These markets have proved resilient, and I expect them to continue to be so,” she says.
According to Sasson Wakelin apartments in these locations are the primary beneficiaries when first-home buyers and investors return to the market.
Also within these apartment markets, she expects demand to remain strong for two-bedroom apartments – a property class that aspirational home buyers choose when they cannot afford to buy a house or for existing home owners who are downsizing.
She says there will also be “excellent opportunities” for investors in one-bedroom apartments priced around $400,000.
“These are properties that fell between 5% and 10% last year due to the withdrawal of first-home buyers last year,” she says.
As to who is likely to buy investment properties in 2012, Wakelin Sasson says buyer interest is likely to be strong from the 50-plus age group, “many of whom are using the self-managed super funds to purchase property”
“These are investors who are transferring their wealth out of a volatile share market into residential property with a view that this is a more stable capital investment,” she says.
She points to an up-lift in recent auction activity, which suggests that the growth in buyer numbers is outstripping the growth in properties listed for sale.
“Melbourne housing is still a compelling long term investment prospect,” she says.
Overall, Wakelin Sasson expects demand to pick up on the back of tight rental vacancies, the relatively stable economy and low unemployment.
“We have a basically sound economy with improved housing affordability but a continued shortage of housing.
“Interest rates are more likely to remain stable than fall over 2012.
“The rate cuts of last year have stabilised the property market and may be sufficient to kick start the upward phase of the property market cycle,” she says.
 
 
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Excellent opportunities for property investors in Melbourne: Monique Sasson Wakelin

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A stoush is brewing between the RBA, which looks set to leave interest rates on hold for some time now, and those who think they should fall. 
Yellow Brick Road’s Mark Bouris is the latest industry figure to call for a reduction in interest rates.
In a series of tweets today Bouris slammed the RBA’s most recent interest rate decision and said the central bank needed to take into account that Australia had a multi-speed economy when determining interest rate settings.
Bouris says the Reserve Bank needs to “scratch beneath the surface” of the economy and not just look at “OK” overall picture when setting interest rates.
At the same time Westpac boss Gail Kelly has warned home borrowers to expect small and more frequent rate changes as banks looked to maintain their profitability in a low growth environment.
Bouris began his twitter rail against the RBA with:
“Looking at the comments re a two-speed economy, this is a multi-speed economy ! At what point will someone make the call to do something??”
He then goes on to tweet:
<ul>
<li>“What's the basis of the RBA decision? They keep rates on hold because everything looks OK but you just need to scratch beneath the surface.”</li>
</ul>
<ul>
<li>“Manufacturing is suffering because of a strong Australian dollar, small businesses, retail, tourism the same. Mining is doing well but at what cost?”</li>
</ul>
<ul>
<li>“Does anyone agree with me or what do you think?</li>
</ul>
<ul>
<li>“Why can't we have policy that addresses all parts rather than the average?”</li>
<li>“Anyone in the tourism industry have anything to say? How are you feeling?  What about manufacturers? Retail shop owners?”</li>
</ul>
In an interview with Australian Financial Review Kelly says borrowers should expect to see “smaller rate moves more often”.
Kelly says recent bank analyst reports show that banks will need to raise their home loan rates by between 0.15% and 0.2% to maintain their profits.
However, research by Nomura has found that mortgage lending remains highly profitable for banks delivering a return of 20% with Westpac’s mortgage lending business the most profitable, with a 23% return on the capital it lends out in the form of mortgages.
According to Nomura, Westpac would earn an extra $122 million by raising mortgage rates by just 0.05%.
Kelly says the decision by ANZ to decouple itself from the RBA and make independent interest rate calls had been helpful for others banks and had probably been more helpful to Westpac than ANZ.
The Bank of Queensland has already lifted its standard variable rate by 10 basis points to 7.46% following the RBA decision to keep rates on hold on Tuesday.
The Commonwealth Bank, National Australia Bank and Westpac have all refused to rule out further independent rate moves this month.
 
 
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Mark Bouris takes aim at RBA as Gail Kelly warns of ‘frequent’ independent bank rate rises

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Home buyers and investors can look forward to lower interest rates over the next decade, according to Macquarie Group senior economist Brian Redican.
“Interest rates should be lower over the next 10 years than they have been over the last 15,” he has told delegates at WBP Property Group’s 2012 Melbourne Property Outlook breakfast today.
A reduction in rates, Redican says, will deliver a significant boost to the Victorian housing market increasing the level of “effective demand”, that is the number of people who are able and willing to buy property.
Redican expects house prices to fall by about 5% in Melbourne during 2012 but says further rate cuts should stabilise the market in 2013.
Redican says interest rates in Australia are currently low compared with what they have been historically in the country, but high relative to other first-world economies such as the US, UK and Canada.
He is critical of the Reserve Bank for not being “pre-emptive” enough when it comes to reducing interest rates and says the RBA is far too focused on mitigating impact of the mining boom, which only employs 10% of the workforce, when setting its interest rates policy.
However, the sectors of the economy that are struggling at present – manufacturing, construction and retailing – employ about 30% of the workforce and will force the RBA’s hand, he says.
“The RBA is a reluctant rate cutter due to the mining boom, but it will be forced to cut interest rates over the next few years,” Redican says.
He presented a series of slides that showed how structurally the economy had shifted during the past two decades – for example unemployment fell 7% from 11% in the early 1990s to 4% just before the GFC, while household debt-to-income ratios increased from 50% to 150% as Australians invested in property and other assets to double their wealth.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/unemployment.gif"><img src="/images/stories/unemploymentthumb.gif"></a>
However, these changes cannot be repeated – for example, unemployment cannot fall another 7%.
He also expects consumer spending – which grew at around 4% annually between 1993 and 2008 – to return to the 2% annual growth trend pre-1993, meaning interest rates do not need to be as high as they are to curtail spending.
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Interest rates will be lower in next decade than in recent past: Macquarie Group's Brian Redican

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Asian and Middle Eastern investors are expected to target Australia’s CBD hotel sector in 2012 after the sector delivered total returns of 17.8% in 2011, led by Sydney hotels.
Sydney hotels delivered investors a 20% total return in 2011 outpacing Melbourne hotels, which managed returns of 13% in an overall strong year for inner city hotel markets, according to the latest Property Council of Australia (PCA)/IPD Hotel Index.
 
Click to enlarge
<a href="/images/stories/hotelmarch81.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/hotelmarch81thumb.gif"></a>
Using data from 99 hotels worth about $5.6 billion, the index reveals that Sydney hotels outperformed the wider market and Melbourne hotels on the key industry measures of occupancy rates and revenue per available room (RevPAR).
On average, one night in a Sydney hotel room generated revenue of $182, compared with $148 in Melbourne and $143 nationally.
<img src="/images/stories/hotelmarch83.gif">
While Sydney clearly has bragging rights over Melbourne, both markets experienced significant increases in returns over the year<a target="_blank" href="https://www.propertyobserver.com.au/leisure/dollar-hurting-tourism-especially-queensland-coastal-hotel-occupancy-rba/2012030653721"> alongside a buoyant inner-city hotel market</a>.
Click to enlarge
<a href="/images/stories/hotelmarch82.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/hotelmarch82thumb.gif"></a>
Troy Craig, managing director of strategic advisory at Jones Lang LaSalle Hotels, says the 2011 results are encouraging news for the hotel investment community and “will ensure that Australia remains a key target for global and regional hotel investors”.
“Transaction volume is expected to reach around $1.2 billion in 2012, representing an uplift of 20% over 2011 and slightly above the long-term trend.
“More owners are expected to take advantage of the trading upswing and exit over the next couple of years.  Asian buyers are expected to continue to dominate, although competition is increasing with a number of Middle Eastern sovereign wealth funds targeting acquisitions in the world’s most transparent real estate market,” he says.
Anthony De Francesco, managing director of IPD in Australia and New Zealand, says the hotel sector has shown “strong investment performance” over 2011.
“The strong investment returns reflects rising RevPAR as a result of persistently high occupancy rates due to low levels of supply and relatively strong demand.”
“We expect the hotel property sector to continue to perform strongly over the remainder of this year given its strong space market fundamentals against core property sector markets,” he adds. Tony Ryan, principal of Ryan Lawyers, which acts on behalf of hotel groups, says total returns increasing by nearly 50% for investment-grade hotels.
“Capital growth was the principal driver reflecting strong fundamentals and a confidence in future cash flows. With domestic corporate demand still robust, CBD hotels are hard to beat,” he says.
 
 
 
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Offshore investors expected to snap up CBD hotels after sector delivers 18% returns in 2011

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ING Direct managed mortgage growth of just 1.9% in 2011, with its mortgage book increasing from $36.7 billion to $37.4 billion during the 12 months to December 31, 2011, its annual results show.
This is well below the 5.4% annual aggregate mortgage growth recorded by the RBA.
According to January 2012 APRA banking figures, ING Direct’s mortgage book shrunk in first month of the year to $37.2 billion.
The lender reported net profit after tax of $304.3 million, a 10% increase on the previous year.
Executive director of delivery Lisa Claes said mortgage growth had fallen well short of "aggressive expansion" targets made early in 2011.
The bank had forecast a 20% increase in mortgage lending in 2011.
Despite the lacklustre growth, it remains the sixth biggest lender in Australia behind BankWest (owned by the Commonwealth Bank), which has a loan book in excess of $45 billion, according to January 2012 APRA banking figures.
The seventh biggest lender is Suncorp, which has a loan book of around $29 billion, according to APRA figures.
During the course of the year the bank deleveraged significantly, with its ratio of total deposits to loans up from 57% to 64%
Risk cost (the funds a bank needs to set aside to cover for loans that might default) dropped to 18%.
ING chief executive Don Koch says 2011 was a year where the balance sheet strengthened, underpinning plans for long-term growth in the Australian market.
“We saw very strong growth in business deposits reflecting a strong desire of SMEs to look beyond the big four.
“We also continued to diversify our funding mix, which is a key plank to facilitate future growth.
“Our customers are keen for us to expand our offerings in the Australian market and we see opportunities in a number of areas,” Koch says.
The bank has more than 1.5 million customers.
 
 
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ING Direct manages minimal mortgage growth in 2011

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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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.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[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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