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RBA governor Glenn Stevens has released <a target="_blank" href="https://www.rba.gov.au">his statement</a> explaining the decision to leave rates on hold today.
At its meeting today, the board decided to leave the cash rate unchanged at 4.25%.
"Recent information is consistent with the expectation that the world economy will grow at a below-trend pace this year, but does not suggest that a deep downturn is occurring. Several European countries will record very weak outcomes, but the US economy is continuing a moderate expansion. Growth in China has moderated as was intended, but on most indicators remains quite robust overall. Conditions around other parts of Asia softened in 2011, partly due to natural disasters, but are not showing signs of further deterioration. Some moderation in inflation has allowed policymakers in the region to ease monetary policies somewhat. Commodity prices declined for some months and are noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels.
"The acute financial pressures on banks in Europe have been alleviated considerably by the actions of policymakers, though there is more to do to put European banks and sovereigns onto a sound footing for the longer term and Europe will remain a potential source of shocks for some time yet. Financial market sentiment has continued to improve in recent weeks and capital markets are again supplying funding to corporations and well-rated banks, albeit at costs that are higher, relative to benchmark rates, than in mid 2011.
"Most information on the Australian economy continues to suggest growth close to trend overall, with differences between sectors and considerable structural change. Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year, though it has been steady over recent months. CPI inflation has declined as expected and will fall further over the next quarter or two. In underlying terms, inflation is around 2½%. Over the coming one to two years, and abstracting from the effects of the carbon price, the Bank expects inflation to be in the 2% to 3% range. This forecast embodies an expectation that productivity growth will improve somewhat as a result of the structural change occurring in the economy.
"Interest rates for borrowers have generally risen slightly since the board's previous meeting, but remain close to their medium-term average. Credit growth remains modest. Housing prices have shown some sign of stabilising recently, after having declined for most of 2011, but generally the housing market remains soft. The exchange rate has risen over recent months, even though the terms of trade have declined.
"With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy remained appropriate for the moment. Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy. The board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation."
 
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'Soft housing' mentioned in RBA statement on March rate decision

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The number of Sydney residential properties listed for sale increased by 10.5% in February, bucking a 0.1% national decline in listings, according to the latest figures compiled by SQM Research. 
Canberra listings increased by 7.5% during February, while Melbourne listings were up by 2%. 
Listings were flat in Brisbane (0.2%) and Perth listings were flat (0.3%), while declines were recorded in Adelaide, Darwin and Hobart. 
Year-on-year Hobart has the highest increase in residential stock (up 36.5%), followed by Melbourne (19.8%), Canberra (12.8%) and Adelaide (12.1%).
Managing director of SQM Research Louis Christopher says there is more evidence “that stock levels have been peaking, particularly for the cities of Perth and Brisbane, which having been recording some signs of a recovery on other measurements”. 
“Overall we are cautious and perhaps a little more cautious than at the start of the year, given the lacklustre start to the auction season and the rise in interest rates by the major banks, which we believe has dented sentiment towards real estate,” says Christopher.
<img src="/images/stories/45423.gif">
The number of residential listings in Melbourne in February, up 2% in February and up 19.8% year-on-year
 
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<img src="/images/stories/31833.gif">
The number of residential listings in Sydney in February, up 10.5% in February and up 4.2% year-on-year
 
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<img src="/images/stories/28243.gif">
The number of residential listings in Brisbane in February, up 0.2% in February, but down 2.4% year-on-year
 
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<img src="/images/stories/19144.gif">
The number of residential listings in Perth in February, up 0.3% in February, but down 7.5% year-on-year
 
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<img src="/images/stories/17183.gif">
The number of residential listings in Adelaide in February, down 4% in February, but still up 12.1% year-on-year
 
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<img src="/images/stories/4467.gif">
The number of residential listings in Hobart in February, down 2% in February, but still up 36.5% year-on-year
 
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<img src="/images/stories/1960.gif">
The number of residential listings in Canberra in February, up 7.5% in February and down 12.8% year-on-year
 
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<img src="/images/stories/1293.gif">
The number of residential listings in Darwin in February, down 2.9% in February and down 18.6% year-on-year
 
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<img src="/images/stories/368123.gif">
The number of national residential listings in February, down 0.1% in February but still up 7.7% year-on-year
 
 
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Residential listings rise 10% in Sydney to 31,833 but stabilise nationally in February: SQM

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Residential building activity is forecast to pick up in the Northern Territory, Queensland and NSW later this year driven by “minerals-related investment”, according to 2012 economic forecasts by BIS Shrapnel. 
The report highlights the overall positive outlook for the Australian economy, but notes that “large disparities will persist, both regionally and between industries”. 
The biggest beneficiary of the mining boom will continue to be Western Australia, while Victoria is forecast to remain stuck in the slow lane of the two-speed economy, with growth slowing in 2012.
“Some of this [slowdown in Victoria] reflects the impact of the high Australian dollar on the manufacturing, finance and business services sectors, as well as the winding down after a strong period of dwelling building activity over the past couple of years,” says BIS Shrapnel senior economist Tim Hampton. 
“South Australia is doing it tough due to the high Australian dollar, but activity will be supported by a number of very large construction projects over the next few years, including the Olympic Dam expansion. 
“Tasmania will continue to struggle due to the high Australian dollar weighing on its manufacturing and tourism industries. 
“The Australian Capital Territory is likely to experience low growth as government departments rein in spending,” says Hampton. 
According to Hampton the rapid expansion of minerals-related investment is proving the most beneficial to the engineering construction industry as well as some areas of manufacturing, transport, wholesale trade, accommodation, and professional and business services. 
However, the “flip side” of the minerals boom is that record high commodity prices and the rise of the Australian dollar to near-record levels in real terms is having a detrimental effect on tourism, international education industries and many parts of the manufacturing industry. 
“Other industries are also suffering due to the high Australian dollar, including retail trade as Australian households spend more of their money offshore. Many firms in professional and business services are also under pressure because the high Australian dollar is encouraging firms to take these activities offshore,” Hampton says.
“The completion of the government’s construction stimulus package is weighing heavily on non-residential building activity throughout the country,” he says.
The report also notes the continued deleveraging of households, which begun following the onset of the GFC, and the “negative news coming out of Europe and the United States”, which has “weighed heavily on consumer and business confidence” and encouraged creditors to tighten lending standards.
“As a result, the household saving rate has increased to its highest level since the 1980s, housing credit growth has fallen to its lowest annual rate on record, and the level of business credit remains nearly 10% below its late 2008 peak.” 
BIS Shrapnel is forecasting annual average GDP growth just above 3% for the year to June 2012 and 3.5% for the year to June 2013, which should be sufficient to keep the unemployment rate around its current level just above 5% for the next six months, before it starts trending down to around 4.5% in the middle of next year.
 
 
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Resources boom to drive residential building recovery in NT, Queensland and NSW: BIS Shrapnel

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Toowoomba is one of just <a href="https://www.propertyobserver.com.au/hotspots/queensland-towns-dominate-list-of-hotspot-kings-for-three-years/2012030553676">nine locations</a> that has been listed as an investment hotspot three years running (2010-2012) by Australian Property Investor magazine in its annual Hot 100 list.
As Australia's second-largest inland city (after Canberra), Toowoomba could benefit from providing services to the Surat Basin about 160 kilometres to the north west, Australia’s largest coal seam gas (CSG) mine.
However, the town is still recovering from the devastating effects of the 2011 inland tsunami that claimed 22 local lives and caused $7 billion worth of damage to homes and infrastructure in the town and neighbouring Lockyer Valley. Residents complain that the pace of reconstruction remains slow while some home owners continue to battle with insurers to rebuild their homes.
Location and demographics
Toowoomba is located 127 kilometres west of Brisbane. It is bounded by the South Burnett region in the north, the Somerset region and the Lockyer Valley region in the east, the Southern Downs region and the Goondiwindi region in the south, and the Dalby region in the west.
It has an estimated district population of about 150,000, which is expected to reach 231,000 by 2031 and possibly as high as 250,000 under a high-growth scenario (Canberra has a current population of 358,000).
The Queensland government forecasts Highfields, 14 kilometres north of Toowoomba, along with Toowoomba south-east, Toowoomba west and Westbrook, 12 kilometres south of Toowoomba, to grow the fastest over the next four years.
According to ABS statistics, the Toowoomba municipality’s unemployment rate dropped from 3.5% to 1.6% between 2005 and 2009, and its population grew by 7%.
 Key property data
According to RP Data, Toowoomba is more affordable than nearby Chinchilla (also a mining hotspot) and significantly more affordable than hotspot king Gladstone, though returns are lower.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
Median house price
</td>
<td valign="top" width="123">
Yield
</td>
<td valign="top" width="123">
Median unit prices
</td>
<td valign="top" width="123">
Yield
</td>
</tr>
<tr>
<td valign="top" width="123">
Moranbah
</td>
<td valign="top" width="123">
$510,000
</td>
<td valign="top" width="123">
12%
</td>
<td valign="top" width="123">
SNR
</td>
<td valign="top" width="123">
SNR
</td>
</tr>
<tr>
<td valign="top" width="123">
Rockhampton
</td>
<td valign="top" width="123">
$217,500
</td>
<td valign="top" width="123">
6%
</td>
<td valign="top" width="123">
$447,500
</td>
<td valign="top" width="123">
5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Gladstone
</td>
<td valign="top" width="123">
$437,000
</td>
<td valign="top" width="123">
5%
</td>
<td valign="top" width="123">
$350,000
</td>
<td valign="top" width="123">
7%
</td>
</tr>
<tr>
<td valign="top" width="123">
Toowoomba
</td>
<td valign="top" width="123">
$275,000
</td>
<td valign="top" width="123">
5%
</td>
<td valign="top" width="123">
$233,500
</td>
<td valign="top" width="123">
5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Chinchilla
</td>
<td valign="top" width="123">
$320,000
</td>
<td valign="top" width="123">
5%
</td>
<td valign="top" width="123">
$252,500
</td>
<td valign="top" width="123">
8%
</td>
</tr>
</tbody></table>
 
About a third (31%) of residents in Toowoomba and the Lockyer Valley rent.
Hotspotting.com.au director Terry Ryder warns against investing in locations solely reliant on the resources boom.
In this respect, Toowoomba is more than just a base for mining companies. It has a diverse economy with major industries including manufacturing, agriculture and education. Toowoomba has more than 23 private schools and a technical college, as well as being home to a campus of the University of Southern Queensland.
Ryder describes Toowoomba as a “prime example of a strong regional economy that benefits from the resources boom but doesn’t rely on it – making it a safe long-term bet for investors.
“Toowoomba has a diverse economy, a secure water supply … and an exciting future given everything that is happening in the neighbouring Surat Basin, Australia’s new resources boom province,” Ryder explains as part of his reason for selecting Toowoomba in Smart Property Investment magazine’s 2012 list of 50 locations with the most price growth potential.
Toowoomba was also one of <a href="https://www.propertyobserver.com.au/australian-capital-territory/of-15000-suburbs-21-rise-to-the-top-as-worth-a-look-for-investors/2011072750933" target="_blank">only 21 locations to be included on hotspot lists</a> of both Your Investment Property magazine and Australian Property Investor last year.
Toowoomba is the top pick of RP Data’s David Williams, who says “Toowoomba is quickly becoming a base town for [CSG] mining companies”.
Current state of the market
According to the January 2012 ANZ Australian Housing Chart book, Toowoomba was one of the better-performing regional locations in Queensland, with price growth of around 3%. This is well below that of hotspot king Gladstone, but it is higher than the overall regional Queensland market and Brisbane.
Click to enlarge
<a href="/images/stories/qldgrowth.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/qldgrowththumb.gif"></a>
Source: ANZ January 2012 Housing Chart Book
Demand for property in Toowoomba will likely be underpinned by strong population growth in the neighbouring Lockyer Valley, which is one of Australia’s fastest-growing regional areas:
Click to enlarge
<a href="/images/stories/fastregional.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/fastregionalthumb.gif"></a>
Source: ANZ January 2012 Housing Chart Book
What local estate agents say
Lynn McLean, owner of Realpoint Property owner, reports an increase in sales in January. "It's all starting to finally happen for the Surat Basin," she told the Toowoomba Chronicle. "Last week I sold five other blocks of land specifically to cater for the mining industry.”
McLean says she has “a waiting list of people looking for blocks of units and duplexes” and has been taking delegations of interstate and overseas investors on tour of the city's real estate.
She is currently marketing a two-bedroom house on Jellicoe Street (pictured below) on a 1,400-square metre-lot for $315,000 as a development opportunity suited for mine workers.
<img width="470" src="/images/stories/toow1.jpg">
“At the very western end of Jellicoe Street, so is perfectly situated for accommodation units for the mining workers,” she writes.
It is currently rented at $205 per week, reflecting a yield of 3.38%
“You could divide it into two lots, both lots would have good street frontage or you could remove the house and build five units,” she says.
A pick-up in activity has also been noted by Collier International's Dominic Ryan, after a slow 2011.
According to Ryan there has been a lot of interest of late from investors in towns near the Surat Basin. Ryan expects rents to start rising.
Another agent, Daniel Steinberg from Ray White Toowoomba is selling this four-bedroom house on Winning Street currently rented at $355 per week at an asking price of $345,000.
This equates to a yield of 5.35%.
<img width="470" src="/images/stories/toow2.jpg">
“Act now before the mining rental boom hits the west side of Toowoomba,” he writes.
Reasons to buy:
<ul>
<li>Growing reputation as gateway to Surat Basin driving up residential sales</li>
<li>More affordable than other regional locations near mining activity</li>
<li>Growing population </li>
<li>Not just reliant on mining but a thriving multi-sector regional town</li>
<li>Investors in new homes in Toowoomba can take advantage of the $10,000 building boost until April</li>
</ul>
Reasons not to buy:
<ul>
<li>Physical scars still remain from the devastating inland tsunami </li>
<li>Reports that buyers remain “spooked” about buying in flood-affected towns.</li>
</ul>
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Hotspots: Toowoomba could be headed for recovery

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The cost of funding mortgage lending will again become a hot topic this week regardless of the decision the Reserve Bank makes about the cash rate.
Banks will argue that funding costs are rising, and more out-of-cycle rate decisions are expected. 
However, research compiled by Nomura analysts Victor German, Prue Rydstrand and Anthony Hoo has found that apart from a “brief period in January when banks technically wrote unprofitable business” mortgages remain an “attractive asset class for the majors, on a medium-term view”. 
These are the numbers you need to know:
<img src="/images/stories/20percent.gif">
The estimated return banks are currently making on their mortgage lending businesses
 
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<img src="/images/stories/30percent.gif">
The estimated return banks will make on their mortgage lending businesses if funding spreads normalise towards 2011 levels
 
<hr>
 
<img src="/images/stories/1percent.gif">
 
The estimated earnings boost the major banks receive for every five-basis-point increase in their standard variable rate. On the same five-basis-point increase regional banks receive a 3% earnings uplift and a 0.25% gross profit margin benefit.
 
<hr>
<img src="/images/stories/23percent.gif">
The estimated return Westpac is making on its mortgage lending business. The bank currently has the highest interest rate of the major banks at 7.46%.
 
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<img src="/images/stories/122m.gif">
How much extra revenue the Westpac earns by pushing up rates by five basis points
 
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<img src="/images/stories/22percent.gif">
The estimated return the Commonwealth Bank is making on its mortgage lending business. The bank currently has the second-highest interest rate of the major banks at 7.41%.
 
<hr>
 
<img src="/images/stories/126m.gif">
How much extra revenue the Commonwealth Bank earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/20percent.gif">
The estimated return ANZ is making on its mortgage lending business. The bank currently has the third-highest interest rate of the major banks at 7.36%.
 
<hr>
 
<img src="/images/stories/68m.gif">
How much extra revenue the ANZ earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/18percent.gif">
The estimated return NAB is making on its mortgage lending business. The bank currently has the lowest rate of the major banks at 7.31%.
 
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<img src="/images/stories/83m.gif">
How much extra revenue NAB earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/70bps.gif">
 
The average discount the major banks are currently offering borrowers on mortgages over $500,000
 
 
Source: All numbers sourced from Nomura Equity Research
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The millions banks make from raising interest rates by 0.05% and 11 other numbers you need to know

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Demand for ongoing discount rate loans has fallen as lenders pull back on offering these special deals, according to February mortgage approval figures from Mortgage Choice. 
The percentage of ongoing discount rate loans fell from 46% to 42% of all new home loan approvals by Mortgage Choice brokers in February – the largest decrease since Mortgage Choice began reporting on this loan type in November 2010. 
An ongoing discount rate loans is one where the interest rate is discounted over the entire loan term, usually in exchange for an annual fee. 
Despite this drop, demand for this product still remains well above the 12-month average of 38%. 
Fixed-rate loan demand steadied in February, at 21% of all new home loan approvals, on par with January and the six-month average, but ahead of the 12-month average of 16%. 
Demand for basic variable loans rose to 17% of all approvals in February, from 14% in January while standard variable loan demand grew marginally to 16% from 15%. Line of credit loan popularity held steady at 3% and interest in introductory rate loans remained below 1%.
<img src="/images/stories/mcmarch5.png" width="470">
Source: Mortgage Choice 
Commenting on the February figures, Mortgage Choice spokeswoman Belinda Williamson says lenders kicked off 2012 with a “slew of loan discounts in a bid to compete for business in a subdued housing finance market”. 
“A number of these discounts were scaled back in February as lenders responded to shaky global economics and rising funding costs. 
“We were surprised to find that despite lenders raising their home loan interest rates independently of the Reserve Bank during February, and ongoing concern around the direction of interest rates, our borrower data did not show any increased interest in the repayment security offered by fixed-rate loans. 
“The fact that only one in five new loan customers opted for fixed-rate loans reflects that there is still a large volume of borrowers willing to ride the variable rate rollercoaster,” says Williamson.
 
 
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 Demand for discounted mortgages wanes as lenders pull offers: Mortgage Choice 

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More borrowers are choosing fixed loans and shopping around for the best refinancing deal as inquiries from buyers in Sydney and Melbourne show signs of picking up, according to McGrath Estate Agents boss John McGrath. 
In his latest market outlook for 2012, McGrath writes that the housing market remains in a state of flux due to global worries, recent job cuts and the out-of-cycle rate increases by the banks, but notes that “buyer enquiry is considerably higher, with more people attending opens in January and February”. 
He also highlights recent mortgage lending figures from mortgage broker AFG, which reported a 40% increase in national mortgage sales in January (up 14.5% in NSW) compared with the corresponding period last year, when natural disasters significantly impacted sales.
“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,” McGrath says.
“While it’s too early to tell whether this new enquiry will translate into sales, it’s logical to think that if enquiry is up and new mortgages are up then we will see a good start to the first quarter,” he says.
McGrath also notes the growing propensity for borrowers to choose fixed-rate loans and the increase in refinancing activity.
“Many borrowers are choosing the safety of two-year fixed loan rates as low as 5.8%. AFG says 18.6% of all new loans in January were fixed, more than double that of six months ago. Borrowers are increasingly shopping around with 50,000 people reportedly refinancing last quarter,” he says.
To make an informed refinancing decision, download Property Observer’s free eBook: <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage"> 12 tips for refinancing your mortgage</a>
According to McGrath, the banks’ decision to move independently of the RBA will cause some insecurity among borrowers.
“When the RBA drops rates, it’s a sign our economy needs a boost and in the past, home owners have been able to count on mortgage relief during these periods. But with the banks citing international pressures as the major determining factor for their home loan rates, consumers may no longer have the comfort of lower repayments when our economy slows,” he warns.
He also warns that unemployment remains a concern following jobs cuts by several big companies and could hinder a housing market recovery.
“While we’re not seeing rising unemployment on any major scale at the moment, if it were to blow out significantly from here it would likely have a damaging effect on property values and rents,” he says.
For investors looking for sound investment opportunities McGrath makes the observations:
<ul>
<li>Buying residential real estate within 10km of the CBD in Sydney is an excellent choice, with outer suburban areas not doing as well as city hubs and the coastal belt</li>
</ul>
<ul>
<li>Investors seeking higher rewards might look to south-east Queensland this year. We’re already seeing more activity on the Gold Coast, with investors coming from the local area, as well as Sydney, Brisbane and Melbourne</li>
</ul>
<ul>
<li>Markets like the Gold Coast and Sunshine Coast were significantly oversold during the GFC and depending on the level of mortgage sales over the next 12 months, should have very strong upside when they begin a real recovery either this year or in 2013. 
</li>
<li>We’re seeing a significant jump in enquiry in many of our markets, particularly Bowral, Ballina, Byron Bay, Wollongong, Thirroul, Newcastle, and the Gold Coast. </li>
</ul>
 
 
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More borrowers choosing safety of fixed-rate loans as buyer activity picks up: John McGrath

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There are just nine locations in Australia that are long-running property investment hotspots, according to analysis of Australian Property Investor magazine’s Hot 100 list for last three years.
Among the nine are five Queensland locations – Coorparoo, Gladstone, Southport, Toowoomba and Townsville.
There are six regional locations – Gladstone, Newcastle, Orange, Toowoomba, Townsville and Warrnambool.
The lack of city suburbs is notable, with only three making it on the list – Blacktown in the hotspot belt of western Sydney and Coorparoo and Southport in Brisbane.
Not surprisingly, the list includes a number of towns with mining connections, including Newcastle in NSW and Gladstone and Toowoomba in Queensland.
But there are also expanding regional towns that are becoming lifestyle destinations such as Warrnambool in country Victoria and Orange in NSW, which has a growing reputation for fine food and its nearby wineries.
The most affordable housing market among this list is Toowoomba (median house price of $276,000) and the most affordable unit market is in Orange, where an apartment costs just $218,000.
<img src="/images/stories/blacktown.gif">
The 2012 median house price in the Sydney suburb of Blacktown is $368,000, while the median unit price is $282,000.
<img src="/images/stories/coorparoo1.gif">
The 2012 median house price in the Brisbane suburb of Coorparoo is $676,000, while the median unit price is $540,000.
<img src="/images/stories/gladstone1.gif">
The 2012 median house price in the Queensland town of Gladstone is $445,000, while the median unit price is $350,000.
<img src="/images/stories/newcastle.gif">
The 2012 median house price in the NSW town of Newcastle is $385,000, while the median unit price is $346,000.
<img src="/images/stories/orange1.gif">
The 2012 median house price in the NSW town of Newcastle is $315,000, while the median unit price is $218,000.
<img src="/images/stories/southport.gif">
The 2012 median house price in the Gold Coast suburb of Southport is $385,000, while the median unit price is $330,000.
<img src="/images/stories/toowo.gif">
The 2012 median house price in the Queensland town of Toowoomba is $276,000, while the median unit price is unavailable.
<img src="/images/stories/townsville.gif">
The 2012 median house price in the Queensland town of Toowoomba is $370,000, while the median unit price is $308,000.
<img src="/images/stories/warrnam.gif">
The 2012 median house price in the Victorian town of Warrnambool is $315,000, while the median unit price is $241,000.
Among the reasons for Townsville selection are “plenty of shopping centres … great cafés, restaurants, an aquatic play area on the Strand, a good art precinct at River Way, good hospitals, a university and schools”.
Southport on the Gold Coast is chosen because of its “law courts, good schools, the Gold Coast Hospital and further public transport potential with the light rail coming”.
“It also has a major shopping centre, Australia Fair, strip shopping, cafés and restaurants,” says API magazine.
 
 
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Queensland towns dominate list of hotspot kings for three years

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The Housing Industry Association says it is looking forward to meeting with new Federal Housing Minister Brendan O’Connor to “discuss the many pressing policy areas that need to be addressed to revitalise the residential housing industry”. 
“Housing is a staple of life that drives both economic and social outcomes. Yet Australia is facing both a housing shortage and affordability challenge, which needs urgent attention.” says Graham Wolfe, chief executive of the HIA. 
O’Connor was named the new Minister for Housing and Homelessness as well as Small Business Minister as part of the cabinet reshuffle announced by Prime Minister Julia Gillard following her defeat of former foreign minister Kevin Rudd in the Labor Party leadership vote. 
The HIA welcomed O’Connor’s appointment as well as the combining of the two portfolios.
“The Australian housing industry is made up of around 85% small business,” says Wolfe. 
“By combining these two portfolios, Minister O’Connor has the unique opportunity to promote much needed policy initiatives and programs across small business and residential building. 
“It is also important that the housing portfolio has remained in cabinet, and it is likewise pleasing to see that small business has now been elevated to this level.” 
“The housing industry puts around 400,000 Australians into new homes every year and creates thousands of new jobs.” 
Lobby group Australians for Affordable Housing (AAH) also welcomed O’Connor’s appointment. 
It also applauded the move to retain the role of housing minister as a cabinet position. 
“This is recognition that housing is central to the wellbeing of every single Australian household and should be a concern for the highest levels of government,” says AAH campaign manager Sarah Toohey. 
“Housing is the biggest cost-of-living issue in Australia, and with one in 10 households in housing stress it is clear that our current housing system is failing too many people. 
“We need a national housing plan, to deliver affordable housing, right across the system, from public and community housing to home ownership. Retaining a single housing minister in cabinet is an excellent first step towards making sure the housing system works for everyone. 
“People in Minister O’Connor’s own electorate of Gorton, know too well the problem of housing affordability. Figures released by AAH late in 2011 show that the Local Government areas of Melton, Hume and Brimbank (which are either in or surround the seat of Gorton) are all in the top five areas of housing stress in Victoria,” says Toohey.
 
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Industry groups ask new Federal Housing Minister Brendan O’Connor for nationwide housing plan

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NSW house repossession orders declined by 6% in the final quarter of 2011 compared with the corresponding period in 2010, according to writs of possession notices issued by the NSW Supreme Court.
There were 614 writs of possession notices issued in final quarter of 2011 compared with 649 in the final quarter of 2010 and 703 in the final quarter of 2009.
There was also a similar decline (5%) in the number of writs issues in the second half of the 2011 compared with the first half of the year, with 1,467 writs issued, up from 1,378.
In the final month of the year, there were 150 writs issued, with the Liverpool’s Casula the worst offender with three writs issued.
In total there were 2,845 writs of possession notices issued over 2011. The worst month was May, when 301 writs were issued by the NSW Supreme Court.
In May, Bankstown in Sydney’s outer west and Young, 272 kilometres of south west of Sydney, had the highest number of writs issued, with five apiece.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/repos.gif"><img src="/images/stories/reposthumb.gif"></a>
In 2010 there were 2,564 writs issued, a 33% decline on 3,816 issued in 2009.
 
 
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NSW house repossession orders down 6% in final quarter of 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.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[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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