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Publisher Fairfax Media has defended its decision to buy a 50% stake in real estate print publication The Weekly Review following criticism of the investment by REA Group boss Greg Ellis.
Ellis, publisher of realestate.com.au, labelled the decision to invest in The Weekly Review “mind-numbing” in a surprise attack on his closest real estate listings rival.
But Tony Blamey, general manager of real estate at Fairfax media, says real estate print advertising remains “highly relevant”.
“A high proportion of people buy in the local area, so local advertising in print is highly ­relevant,” he told the Australian Financial Review.
Blamey says print media is still a “highly valued” component of real estate marketing.
“We see our local publications being very well supported,” he says.
Blamey also pointed out that Fairfax’s <a href="https://www.domain.com.au/" target="_blank">Domain.com.au </a> website, which <a href="https://www.propertyobserver.com.au/industry-news/realestate.com.au-miles-ahead-of-online-property-portal-rivals/2012021653422" target="_blank">ranks a distant second behind realestate.com.au</a>, had made up ground on its rival over the past year with the number of agents using the site growing by 6% to more than 6,000, despite the property market contracting over that period.
<a href="https://www.propertyobserver.com.au/industry-news/rea-hit-by-queensland-real-estate-agency-contraction/2012022153479" target="_blank">Interim results to December 31 put out by REA Group</a> last week revealed that it had suffered a 4% drop in paying real estate offices on its listings websites <a href="https://www.realestate.com.au/buy" target="_blank">realestate.com.au</a> and <a href="https://www.property.com.au/buy" target="_blank">property.com.au</a>, the second consecutive six-month period that numbers have fallen.
More than 200 real estate offices stopped advertising on realestate.com.au and property.com.au in the second half 2011 with, numbers falling from 9,536 to 9,324 over this six-month period to sit below December 2009 numbers (9,329 paying agent offices).
 
 
 
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lschlesinger-FZcF9M3vE6

Print real estate advertising ‘highly relevant’: Fairfax

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Sydney suburbs, many of them on the outer fringes of the city, account for one in three suburbs on RP Data’s list of the top 100 locations for house price growth, with the Hunter Valley and Newcastle region also making a strong showing.
Mining towns in far north Queensland featured strongly on the top 10, led by Moranbah (1st), New Auckland (3rd), Clinton (6th) and West Gladstone (8th).
The top-ranking Sydney suburb is Arncliffe, about 11 kilometres south of the CBD, which comes in at number nine on the list.
Over the past year house prices in Arncliffe have risen 16.3% from $601,000 to $699,000.
Arncliffe is followed by 10th placed Riverstone, 48 kilometres west of Sydney in the Blacktown municipality where house prices have risen 16% from $364,000 to $422,000 over the course of 2011.
Rounding out the top 10 ranking Sydney suburbs on the list are:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="107" valign="top">
Suburb
</td>
<td width="100" valign="top">
Rank
</td>
<td width="107" valign="top">
Distance from Sydney CBD
</td>
<td width="105" valign="top">
Median price in 2010
</td>
<td width="105" valign="top">
Median price in 2011
</td>
<td width="92" valign="top">
% change
</td>
</tr>
<tr>
<td width="107" valign="top">
Arncliffe
</td>
<td width="100" valign="top">
9
</td>
<td width="107" valign="top">
11 km south
</td>
<td width="105" valign="top">
$601,080
</td>
<td width="105" valign="top">
$699,296
</td>
<td width="92" valign="top">
16.3%
</td>
</tr>
<tr>
<td width="107" valign="top">
Riverstone
</td>
<td width="100" valign="top">
10
</td>
<td width="107" valign="top">
48 kms south west
</td>
<td width="105" valign="top">
$364,377
</td>
<td width="105" valign="top">
$422,412
</td>
<td width="92" valign="top">
15.9%
</td>
</tr>
<tr>
<td width="107" valign="top">
Granville
</td>
<td width="100" valign="top">
16
</td>
<td width="107" valign="top">
22 km west
</td>
<td width="105" valign="top">
$399,000
</td>
<td width="105" valign="top">
$451,000
</td>
<td width="92" valign="top">
12.9%
</td>
</tr>
<tr>
<td width="107" valign="top">
Canley Heights
</td>
<td width="100" valign="top">
20
</td>
<td width="107" valign="top">
31 km south west
</td>
<td width="105" valign="top">
$405,000
</td>
<td width="105" valign="top">
$453,000
</td>
<td width="92" valign="top">
12%
</td>
</tr>
<tr>
<td width="107" valign="top">
Blaxland
</td>
<td width="100" valign="top">
32
</td>
<td width="107" valign="top">
60 km west
</td>
<td width="105" valign="top">
$389,230
</td>
<td width="105" valign="top">
$424,254
</td>
<td width="92" valign="top">
9%
</td>
</tr>
<tr>
<td width="107" valign="top">
Mona Vale
</td>
<td width="100" valign="top">
34
</td>
<td width="107" valign="top">
30 km north
</td>
<td width="105" valign="top">
$851,195
</td>
<td width="105" valign="top">
$926,678
</td>
<td width="92" valign="top">
8.9%
</td>
</tr>
<tr>
<td width="107" valign="top">
Greenacre
</td>
<td width="100" valign="top">
37
</td>
<td width="107" valign="top">
17 km south west
</td>
<td width="105" valign="top">
$491,000
</td>
<td width="105" valign="top">
$532,000
</td>
<td width="92" valign="top">
8.4%
</td>
</tr>
<tr>
<td width="107" valign="top">
Earlwood
</td>
<td width="100" valign="top">
39
</td>
<td width="107" valign="top">
12 km west
</td>
<td width="105" valign="top">
$754,000
</td>
<td width="105" valign="top">
$817,000
</td>
<td width="92" valign="top">
8.3%
</td>
</tr>
<tr>
<td width="107" valign="top">
Hinchinbrook
</td>
<td width="100" valign="top">
48
</td>
<td width="107" valign="top">
39 km south west
</td>
<td width="105" valign="top">
$437,000
</td>
<td width="105" valign="top">
$470,000
</td>
<td width="92" valign="top">
7.6%
</td>
</tr>
<tr>
<td width="107" valign="top">
Macquarie Fields
</td>
<td width="100" valign="top">
52
</td>
<td width="107" valign="top">
42 km south west
</td>
<td width="105" valign="top">
$304,000
</td>
<td width="105" valign="top">
$325,000
</td>
<td width="92" valign="top">
7.2%
</td>
</tr>
</tbody></table>
Source: RP Data
Outside of Sydney, NSW investors should look north towards the Hunter Valley region and the regional city of Newcastle, where a growing demand for mining accommodation is driving up house prices and rents.
The highest-ranking location in the Hunter region was Medowie, a suburb of Port Stephens in the Hunter region, which ranked 24th on the list and recorded house price growth of 10.6% in a year. During 2011 house prices in Medowie increased from $327,000 to $362,000.
Kurri Kurri placed 33rd on the list, with house price growth of 8.9% ($234,000 to $255,000). The small town, which has population of about 6,000, is home to the Kurri Kurri aluminium smelter and is surrounded by wineries.
Raymond Terrace, about 26 kilometres north of Newcastle on the Pacific Highway and administrative centre of the Port Stephens municipality, ranked 44th on the list, with the median house price rising 7.9% from $269,000 in 2010 to $290,000 in 2011.
New Lambton, less than six kilometres from the city centre, ranks 50th on the RP Data list, with house prices up 7.3% over the past 12 months to a median of $441,000.
Also on the list is the north-western Newcastle suburb of Mayfield, where house prices are up 5.1% for the year to $342,000.
Thornton, a suburb in the City of Maitland, ranked 62nd (house prices up 6.4% to $393,000) while Muswellbrook in the Upper Hunter Valley region comfortably made it into the top 100 with house prices up 5.3% for the year to a median of $292,000.
Photo by Sam Gao, courtesy of <a href="https://www.flickr.com/photos/shanna_shattan/4896204381/" target="_blank">Flickr.</a>
 
 
 
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Arncliffe leads Sydney suburbs on RP Data top 100 hotspot list 

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Mortgage Choice and Smartline mortgage brokers will be able to offer their clients home loan products from Credit Union Australia (CUA) from March 1 following the lender’s decision to return to the third-party distribution market. 
CUA quit the broker space in mid-2008 in the wake of the GFC due to the increasing costs of sourcing mortgage funding. 
Before the GFC, the CUA was an active player in the broker space, writing about 30% of its mortgages via this distribution channel. 
Darrin Northey, CUA’s group general manager for distribution, says the credit union had been looking to re-engage with the broker network for some time. 
He believes the move will help ensure its home loans are even more widely available to customers and available in the same space as products from the major banks. 
“Given around one in four homebuyers seeks out a home loan via a broker, CUA’s re-entry into the network means we will be expanding the reach of our products to a greater potential audience,” he says. 
“We have been planning our re-entry into the broker network for some time and are confident that now is the right time, with the right commercial terms, for us to make that move. 
CUA was one of the few lenders to leave their standard variable rate unchanged in February after the ANZ’s rate rise sparked <a target="_blank" href="/news">most lenders to raise their rates outside of the RBA cycle</a>. 
CUA currently offers a standard variable rate of 6.72%, which is 0.59% lower than the 7.31% offered by NAB, the cheapest of the big four banks.
In its 2011 annual results, CUA revealed it had total assets under management of $9 billion, up $860 million since June last year.
 
 
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CUA to offer home loans via Mortgage Choice and Smartline brokers

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Commercial property REIT Cromwell Property Group will continue with its strategy of investing in high-yield CBD and core fringe offices after its office portfolio helped drive up earnings by 13% for the six-month period to December 31, 2011.
Cromwell reported first half operating earnings of $37.0 million compared with $32.8 million in the first half of 2011, with office property income rising 8% from $43.5 million to $47 million.
The fund has an office portfolio comprising 23 buildings worth $1.73 billion, with a weighted average lease term across the portfolio of 6.3 years and an occupancy rate of 99%.
The vast majority (85%) of the office space in the portfolio is leased to either government or listed companies.
Its highest-earning office asset is Tuggeranong Office Park in the ACT, which contributed $9.5 million income, followed by 700 Collins Street in the Melbourne CBD, which brought in $6.8 million.
Over the course of the six-month reporting period Cromwell acquired North HQ in Fortitude Valley for $186 million and also agreed to terms to re-acquire Bundall Corporate Centre, Gold Coast for $63.4 million.
The Fortitude Valley office building comprises 28,000 square metres of A-grade office space over 11 levels and is fully occupied for the next four years.
Cromwell previously sold the Bundall Centre for $107 million in October 2007 after initially acquiring it for $52.9 million in 2005.
“Since selling the property in 2007 an additional 8,000 square metre office building has been built on the site and it now supports a passing income of $7.4 million, equivalent to a yield of 11.5% on the purchase price,” says Cromwell chief executive officer Paul Weightman.
In his presentation to investors following the release of the results, Weightman says the trust will continue to invest in “high-quality office assets in predominantly CBD / core fringe markets”.
Weightman says the fund will seek assets which offer the “potential for superior returns through active asset management”.
Weightman says Cromwell will continue to build on its record of market outperformance by focusing on assets that offer the potential for superior returns through active management.
In December, Cromwell launched a $49 million equity raising for the new Cromwell Ipswich City Heart Trust (ICH) which owns the land and will fund construction of the $93 million Ipswich City Heart building in Ipswich, Queensland.
The trust is a seven-year single property syndicate that will commence distributions at 7.75% per annum paid monthly and forecast to increase to 8% per annum from July 2013 and 8.25% from July 20142. The trust’s income is underpinned by a pre-commitment from the Queensland government for a 15-year lease over 91% of the building’s net lettable area
Cromwell has also announced a move into wholesale funds management with the launch of Cromwell Real Estate Partners, which will concentrate on delivering superior risk-weighted returns to wholesale investors through opportunistic real estate investment.
“There is now growing demand from many of the more astute wholesale investors for some exposure to higher return property investments, if risk is managed by partners with a strong track record of risk management and project delivery,” Weightman says.
 
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Office portfolio helps Cromwell deliver 13% increase in earnings

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Australia’s big four banks are more profitable and more liquid then they were a year ago, according to the latest banking figures from prudential regulator APRA.
Between September 2010 and September 2011 the combined profit margins of NAB, Commonwealth Bank, Westpac and ANZ have improved from 31% to 35%, the figures show. The major banks' lending books combined are now worth $1.11 trillion, and they added $72 billion worth of new loans in the 12 months to September 2011.
Over the same period the major banks’ ratio of net loans to deposits has fallen from 120% to 115.6% as the bank sector deleverages and improves its cash holdings in line with new global banking requirements. 
Key numbers as of September 2011:
<img src="/images/stories/1point11t.jpg">
The combined mortgage lending books of the major four banks
 
<hr>
 
<img src="/images/stories/1point27t.jpg">
The combined mortgage books of all 56 Australian banks
 
<hr>
 
<img src="/images/stories/87per.jpg">
Major banks’ share of Australian home lending as of September 2011
 
<hr>
 
<img src="/images/stories/72b.jpg">
 
The total new mortgage lending of the major banks over the 12 months to September 2011
<img src="/images/stories/82b.jpg">
The total mortgage lending of all banks over the 12 months to September 2011
 
<hr>
 
<img src="/images/stories/88per.jpg">
Major banks’ share of new home lending over the 12 months to September 2011
 
<hr>
 
<img src="/images/stories/8point4per.jpg">
Growth in mortgage books of major banks over this period
 
<hr>
 
<img src="/images/stories/59point1.jpg">
Home loans as a percentage of all lending down by the banking sector
 
 
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Eight signs major banks are becoming more profitable

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The Richmond headquarters of Australian fashion label Country Road has been listed for sale with a price tag of about $30 million.
The two- and three-storey office complex known as “Building 3” is located at 658 Church Street within the Richmond Corporate Park and was once the former Richmond Power Station, constructed in 1891.
<img src="/images/stories/countryroad2.jpg">
The building is being sold by the Australian Property Growth Fund (APGF), which values it at $29.75 million. Members of the board of APGF include managing director Geoffrey McMahon, a 22-year property industry veteran and non-executive chairman Neil Summerson, current chairman of the Bank of Queensland and former managing partner of Ernst &amp; Young (Queensland).
It was acquired by APFG in 2003 for $23.2 million and is the only asset in its Property Syndicate No. 4.
<img src="/images/stories/countryroad3.jpg">
In the mid-1990s it was extensively refurbished by Metier 3 Architects specifically for Country Road and now features an office space arranged over three interconnected buildings with lofted ceilings, floor-to-ceiling windows and creative open plan fit-outs.
It measures 8,205 square metres (70% of which is tenanted by Country Road until 2014) and sits on more than one hectare (10,276 square metres) of land on an elevated site adjacent to the Monash Freeway and overlooking the Yarra River.
 It includes 228 car spaces allocated between the basement and on-grade areas.
The building currently returns net rent of around $2.71 million per annum.
<img src="/images/stories/countryroad4.jpg">
Recent sales in the corporate car park include lot 2, measuring around 13,500 square metres, which sold for $42 million in April last year and lot 1, measuring 7,064 square metres, which sold to a private investor/developer consortium headed by Bill Boerkamp for $16.75 million in November 2009.
The fully tenanted building is being marketed by Colliers International directors Peter Bremner and Rob Joyes in conjunction with agents Andrew Dawkins and Walter Occhiuto, of Dawkins Occhiuto.
In addition to Country Road, the other tenants are advertising agency Clemenger Harvie Edge and marketing group Mood Media, while other companies based in the office park include the Just Group, Mattel, Pacific Brands and Hardie Grant.
<img src="/images/stories/countryroad5.jpg">
Bremner says the office building represented an outstanding opportunity for high net worth private investors, syndicators, fund managers or future owner-occupiers.
“This property offers the chance for low-risk investment, with the building being 100% leased to long-standing established tenants,” he says.
Andrew Dawkins says the “solid fundamentals of the Richmond market” should appeal to buyers.
“Richmond has a tight vacancy rate of less than 5% and is home to many companies involved in the fashion, marketing, advertising and publishing industries,” he says.
The property is for sale by expressions of interest closing Thursday March 15, 2012 at 4pm.
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Property fund seeking $30 million for Melbourne Country Road headquarters 

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The proportion of people that feel satisfied when they refinance their mortgage has picked up recently but is still tracking well below satisfaction levels before the GFC, according to research compiled by the Mortgage and Finance Association of Australia (MFAA).
In September 2011, two months before the RBA introduced the first of its two rate cuts in November and December, research by MFAA shows that just under two-thirds (65%) of those who refinanced their mortgage were satisfied with the outcome.
This was up on the 53% satisfaction rating in May 2011 but well below the high of just under 80% who said they were satisfied in November 2008 – a period when the RBA was cutting rates by as much as 1% a month as the financial crisis deepened.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/naylor.gif"><img src="/images/stories/naylorthumb.gif"></a>
The proportion of people that feel satisfied when they refinance their mortgage has picked up recently but is still tracking well below satisfaction levels before the GFC, according to research compiled by the Mortgage and Finance Association of Australia (MFAA).
In September 2011, two months before the RBA introduced the first of its two rate cuts in November and December, research by MFAA shows that just under two-thirds (65%) of those who refinanced their mortgage were satisfied with the outcome.
This was up on the 53% satisfaction rating in May 2011 but well below the high of just under 80% who said they were satisfied in November 2008 – a period when the RBA was cutting rates by as much as 1% a month as the financial crisis deepened. 
However, since then the percentage of borrowers satisfied with their refinancing decision has fallen steadily.
MFAA chief executive Phil Naylor says if one looks beyond the timeline of the chart to 2004, the percentage of borrowers satisfied was close to 90%.
According to Naylor, one of the reasons for this decline would be that there were more lenders on the market between 2004 and 2007.
“Non-bank lenders were still in the market and there were genuine choices as were you could go to refinance,” he says.
Naylor says the golden rule of refinancing is “you must be better off”.
For more expert tips on refinancing your mortgage download Property Observer’s free ebook: <a href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage" target="_blank">12 tips for refinancing your mortgage</a>.
 
 
 
 
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More borrowers refinancing, but they’re not happy about it: MFAA

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Housing affordability improved by 2.2% over the December 2011 quarter, rising to just below levels last seen in December 2009, according to the latest HIA-Commonwealth Bank Housing Affordability Index. 
The overall index rose from 57.2 to 58.5, the fourth consecutive quarter (since March 2011) that housing affordability has improved. 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/hiafeb27.gif"><img src="/images/stories/hiafeb27thumb.gif"></a>
The improvement in housing affordability was led by a 7.9% gain in Brisbane, followed by Canberra (6.1%), Melbourne (4.6%), Perth (4.1%), Sydney (3.5%) and Hobart (3.1%).
Adelaide was the only capital city to buck the trend, with housing affordability declining by 3.6% over the quarter.
Sydney continues to have the highest required monthly loan repayments ($3,635) among capital cities, while in the non-metro regions, WA repayments are the highest ($2,843).
The two RBA rate cuts in November and December were the primary reason affordability improved, with average interest rates falling from 7.05% to 6.8% and monthly mortgage repayments dropping from $3,007 to $2,955 despite the median dwelling price rising from $470,600 to $473,000.
Outside of the capital cities, affordability improved in New South Wales (up by 0.5%), Victoria (up by 7.8%), and Tasmania (up by 0.3%).
Non-metro affordability declined in Queensland (down by 0.1%), South Australia (down by 2%), and Western Australia (down by 5.5%).
“A decrease in mortgage lending rates and continued earnings growth more than offset a modest increase in the median dwelling price to further improve housing affordability in the December 2011 quarter,” says HIA’s senior economist Andrew Harvey.
“As expected, the interest rate cuts in November and December of last year saw housing affordability continue to trend in the right direction. When the recent improvements in affordability are considered alongside the easier access to skilled trades as home building activity has eased, it increasingly looks like a good time to buy a new home for those financially able to do so,” he says.
In the most recent quarter average weekly ordinary time earnings posted growth of 0.5% and mortgage lending rates were down by 0.25%.
Meanwhile, home prices rose by 0.5% in the December quarter although they were down by 1.8% over the year.
 
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Housing affordability at near two-year high, led by Brisbane gains: HIA

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Carrying out home renovation remains the main reason that borrowers refinance their mortgages, according to research by the Mortgage and Finance Association of Australia (MFAA).
While the percentage of borrowers who refinance to renovate has fallen from 20.9% in July 2010 to 17.1%, it is still edges the 16% who say they refinance for a more compelling deal or a better interest rate.
The other explicit reasons why people renovate are to consolidate debts (12.1%), buy a house or car (8.7%) or purchase an investment property (7.7%).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/renovating.gif"><img src="/images/stories/renovatingthumb.gif"></a>
Readers considering undertaking a renovation should sign up for the free Property Observer webinar on Wednesday, February 29 at 12.30pm: Renovating for Profit, with tips and tricks for getting the most out of your renovation and what costly mistakes to avoid.
To ensure you make an informed decision before refinancing your mortgage <a href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage">download Property Observer’s free eBook: 12 tips for refinancing your mortgage – how to find the best home loan in 2012</a>.
 
 
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Renovation the main reason mortgage holders refinance: MFAA

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Moranbah ranked as the number-one suburb for capital growth over 2011, with house prices rising 29% from a median of $474,000 in 2010 to $612,000, according to RP Data.
Property investors continue to pour funds into the small northern Queensland town close to coal mining activity in the Isaac region with yields still on offer of up to 16%.
Sales activity has soared over the first two months of the year, with 44 houses sold in <a target="_blank" href="/news">Moranbah </a>over January and February, according to realestate.com.au figures.
This is more than double the 21 houses sold in the first two months of 2011.
Top Five suburbs for capital growth over 2011
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="103">
Rank
</td>
<td valign="top" width="103">
State
</td>
<td valign="top" width="103">
Suburb
</td>
<td valign="top" width="103">
Median value in 2010
</td>
<td valign="top" width="103">
Median value in 2011
</td>
<td valign="top" width="103">
% change
</td>
</tr>
<tr>
<td valign="top" width="103">
1
</td>
<td valign="top" width="103">
QLD
</td>
<td valign="top" width="103">
Moranbah
</td>
<td valign="top" width="103">
$474,089
</td>
<td valign="top" width="103">
$611,752
</td>
<td valign="top" width="103">
29%
</td>
</tr>
<tr>
<td valign="top" width="103">
2
</td>
<td valign="top" width="103">
NSW
</td>
<td valign="top" width="103">
Moss Vale
</td>
<td valign="top" width="103">
$297,060
</td>
<td valign="top" width="103">
$364,407
</td>
<td valign="top" width="103">
22.7%
</td>
</tr>
<tr>
<td valign="top" width="103">
3
</td>
<td valign="top" width="103">
QLD
</td>
<td valign="top" width="103">
New Auckland
</td>
<td valign="top" width="103">
$378,833
</td>
<td valign="top" width="103">
$459,150
</td>
<td valign="top" width="103">
21.2%
</td>
</tr>
<tr>
<td valign="top" width="103">
4
</td>
<td valign="top" width="103">
ACT
</td>
<td valign="top" width="103">
Red Hill
</td>
<td valign="top" width="103">
$940,873
</td>
<td valign="top" width="103">
$1,129,919
</td>
<td valign="top" width="103">
20.1%
</td>
</tr>
<tr>
<td valign="top" width="103">
5
</td>
<td valign="top" width="103">
QLD
</td>
<td valign="top" width="103">
Clinton
</td>
<td valign="top" width="103">
$385,118
</td>
<td valign="top" width="103">
$452,865
</td>
<td valign="top" width="103">
19.7%
</td>
</tr>
</tbody></table>
Source: RP Data
Hotspotting.com.au director Terry Ryder says there will be further price growth in Moranbah, but believes that the best time to buy was 18 months ago before the growth in prices and rents gathered pace.
“There appears to be long-term sustainable demand from overseas markets for Queensland coal, so towns like Moranbah have a future.
“Investors need to be aware of the risks, however. Mining towns are highly vulnerable to economic cycles and sit at the high-risk end of the investment spectrum. Mining companies are increasingly opting to fly-in-fly-out (FIFO) workforces.
“BHP is seeking to run its new mine near Moranbah on a 100% FIFO workforce, so that does not generate accommodation in the town,” says Ryder.
RP Data’s Cameron Kusher also warns that investors must tread carefully when it comes to mining towns like Moranbah
"'We've seen locations where capital prices collapse as soon as the mine is shut down," he told the Sun-Herald earlier this month.
Local agents though continue to report record listings, high yields and strong investor demand for properties.
Sharyn Mackay from Vision Real Estate is seeking $1.25 million – a Moranbah record – for this five-bedroom house (below) on Longman Drive. According to principal Vikki Oldfield, the property would rent for more than $3,000 per week – a yield in excess of 12%.  It last sold in August 2010 for $710,000.
<img src="/images/stories/mora1.jpg" width="470">
This four-bedroom house (below), marketed by Emma Elliott from Ray White Mackay Beaches and Moranbah with swimming pool on Gilbert Court close is currently under offer of $920,000 according to RP Data and renting at $2,800 per week. At this sales price, this equates to a yield of 15.8%. It last sold for just $121,000 in 2002.
<img width="470" src="/images/stories/mora2.jpg">
Another local real estate agent, Craig Aitcheson from LJ Hooker Moranbah, described the market as the “craziest” he'd ever seen and believers there is still room for further price growth.
“I just can't see it slowing down with all the activity that's happening,” he told the Mackay Daily Mercury.
Aitcheson says 95% of inquiries are coming from investors.
The Moranbah region has undergone rapid population growth in recent times, with the population expanding from just over 7,000 according to the 2006 census to over 10,500 in 2009 according to the Isaac Region Council.
The supply of homes has received a small boost in recent months with the launch of a new residential community known as the Bushlark Grove. The project will provide 160 new homes for around 400 people over the next six months at a cost of $20?million, targeted at the more affordable end of the market.
"Bushlark Grove will provide more affordable housing through the improved supply of residential land and a greater range of housing types to cater for the needs of the Moranbah community," says Urban Land Development Authority director of residential development Peter Smith.
However, the creation of new residential communities around Moranbah appears limited.
Following the recently released Mackay Isaac Whitsunday Regional Plan 2012-2031, aimed at easing the housing squeeze and dependence on fly-in, fly-out workers, Queensland Local Government Minister Paul Lucas says Moranbah's urban footprint could not be expanded because it is surrounded by mining leases.
In December, Moranbah’s status as a coal exporting hub was enhanced with the opening of the new $1.1 billion rail link Goonyella to Abbot Point rail link north of the town.
The rail link will increase the capacity of coal exports by a further 50 million tonnes each year.
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Hotspots: High yields and price growth in Moranbah, but best time to buy may have passed

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

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

Larry Schlesinger

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