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Barring a global meltdown or significant deterioration in Europe, borrowers should not expect any interest rate relief from the Reserve Bank on March 6 or at the following monetary policy meeting on April 3, according to a survey of economists.
All 23 economists surveyed by Bloomberg expect the RBA to leave the cash rate on hold at 4.25% during the next two months.
A strong majority – 16 out of 23 – expect the cash rate to fall by 0.25% in May to 4%, including all the major bank economists, while 14 out of 23 expect a further 0.25% cut in June, taking the cash rate to 3.75%.
Only three out of 27 economists surveyed by Bloomberg ahead of the February rate cut correctly tipped the RBA to leave rates on hold – the others all forecast a rate cut.
In his latest RBA note, HSBC chief economist Paul Bloxham wrote that while the bank has long though the Australian economy is in pretty good shape, “we have been less comfortable about the global outlook.
“And despite better global data recently, particularly in the US, and the recent rally in markets, we still remain somewhat sceptical. We still think global weakness and the flow on to the local economy will probably see the RBA cut a bit further.”
The median forecast is for rates to finish the year at 4%, with the survey of economist responses ranging from 3.7% to 4%.
In the recently published February minutes, the RBA indicated that global demand would play a key role in future interest rate decisions.
And in a speech to the House of Representatives Standing Committee on Friday RBA <a target="_blank" href="https://www.propertyobserver.com.au/economy/no-rate-cut-in-march-but-one-more-likely-by-june-hsbcs-paul-bloxham/2012022453537">governor Glenn Stevens said</a> that the likelihood of lenders passing on rate cuts to consumers was also factored into rate decisions.
In his address Stevens said: “We repeatedly made clear that the shifting relationship between the cash rate and other [lending] rates in the economy is a factor the Board takes into consideration in setting the cash rate”.
 
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Economists unanimously tip rates to remain on hold until May: Bloomberg

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Franchisees who quit Refund before its collapse in October and in the period up until the proposed sale to State Home Loans as well as other unsecured creditors will receive just 10¢ out of every dollar owed to them if the sale to State Home Loans goes ahead.
Those franchisees who have continued to operate while the company has been in administration (and must wait until March for commission payments dating before October 2011) have effectively been asked to pledge their allegiance to State Home Loans despite not knowing anything about the potential new owner.
A letter sent out to creditors February 23 and seen by Property Observer says the deal with State Home Loans is reliant on “as many continuing franchisees as possible to agree to operate under the franchise and to sign a deed of acknowledgement and release”.
By signing the deed franchisees acknowledge “that they will not hold State Home Loans responsible for any debts owed to franchisees or any breaches of the franchise agreement by Refund Home Loans Pty Ltd”.
Franchisees who agree to continue operating will receive all outstanding upfront and trail commissions in full.
Franchisees who terminate or who have terminated their agreement (and who do not rescind this termination and agree to sign a new franchise agreement) will lose any rights to their loan books, with all commissions earned by them in writing loans collected by the administrators and distributed first to the secured creditor, which is owed $2.4 million, and then to employees of Refund, who are owed $313,000.
Any commissions owed by unsecured franchisees will be unsecured claims.
Administrators SV Partners estimate a dividend of 10.32% will be paid to unsecured creditors and terminated franchisees.
Franchisees have been left in the dark as to whether the Refund name will remain, whether any changes to the business model or structure will be made, what support they will receive, what advertising will be undertaken and what levies will be imposed on them.
Information about how State Home Loans will run the business will only be revealed once the sales contract has been signed.
The letter sent out by SV partners also does not provide any information about the aggregator, which will take over from Choice Aggregation Services in paying out future commission payments – the lifeblood of a mortgage broker’s business.
Property Observer understands that creditors and franchisees are extremely disappointed at the proposed sale and the length of time it has taken to find a buyer.
A creditor who wishes to remain anonymous has told Property Observer the information provided by the administrators and the general circumstances surrounding the outcome have caused considerable anger among creditors.
“The administrators have twice extended the time for obtaining a result on the basis that there were, at one stage, some seven credible expressions of interest. The indicated result – in terms of the forecast return to creditors – does not match that claim.
“The extension also added considerably to the fees of the administrators.”
Little is known about State Home Loans, which only received a credit licence a little over a year ago, does not appear to have a website and is not a member of either the Mortgage and Finance Association of Australia or the Finance Brokers Association of Australia, the two main industry bodies.
Property Observer has contacted the administrators for comment but had not received a response at the time of publishing.
 
 
 
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Former Refund franchisees and creditors to get 10¢ on the dollar in proposed sale 

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A combination of too many projects and historically low demand could result in oversupply of new apartments in inner-city Brisbane suburbs like Fortitude Valley and Bowen Hills, valuation firm LandMark White has warned. 
The warning comes as the latest figures from the Real Estate Institute of Queensland for the December 2011 show that rental vacancies in inner Brisbane increased from 1.4% in the September 2011 quarter to 1.9% in the December 2011 quarter, while the overall city vacancy rate remained unchanged at 2.3%.
LandMark White anticipates that low level migration into Queensland will continue to undermine the market. 
“This will see the inner-Brisbane apartment market continue to battle through one of the toughest phases in the property cycle in the last decade,” the firm says. 
As a consequence, it says “developers will need to ensure their ability to target niche markets through well-designed, appropriately priced product and high-quality amenity in an attempt to avoid oversupply or project deferral”. 
There was a 30% increase in sales of inner-Brisbane city units off the plan in the traditionally active September quarter, with 312 transactions taking place compared with 240 in the previous quarter. However, this figure was down 27% compared with the September 2010 quarter. 
“Incentives and rebates are also prevalent in this market as developers struggle to achieve sales,” says LandMark White. 
On the positive side, the RBA is tipped to further cut rates early in 2012, which should improve affordability and raise investment yields. 
“Rentals in the inner-Brisbane apartment market have experienced strong growth over the year to September 2011, with a 6.8% increase in the median weekly rent to $470. Coupled with historically very low vacancy rates should see the inner-Brisbane residential market become more attractive to the investor market,” the report says. 
And while the report notes there have been some encouraging signs for the inner-city residential market, particularly after the last interest rate drop, it says the market needs confidence and that may be dependent upon the outcome in Europe. 
“The first three months of 2012 may set the tone for the remainder of 2012.” 
LandMark White has calculated that there are around 12,100 apartments currently in the development pipeline and around 100 projects in total. 
Of these projects, nearly half (47%) have received development approval and nearly a third (33%) are under construction. 
Nearly two-thirds of the projects under construction are located in the expanding inner-northern Brisbane market, which includes the suburbs of Fortitude Valley and Bowen Hills.
<img src="/images/stories/landmarkwhite.gif">
 Source: LandmarkWhite
Some of the highest profile developments are in these two suburbs, including <a href="https://www.propertyobserver.com.au/developments/alex-perry-development-and-others-all-the-fashion-in-fortitude-valley/2011091551568" target="_blank">Alex Perry’s designer apartment building on Ann Street</a> (131 apartments) being developed by the Chrome Property Group  and <a href="https://www.propertyobserver.com.au/developments/fortitude-valley-s-brooklyn-development-offers-a-taste-of-the-big-apple/2011100551797" target="_blank">Metro Property Development’s 14-storey Brooklyn complex on Brookes Street</a> (191 apartments) a joint project with Indian-based Pearls Australiasia. 
One of the biggest urban regeneration projects is Lend Lease’s redevelopment of the RNA showgrounds into a predominantly residential mixed-use community. The project will be completed during 13 stages and is expected to accommodate a resident population of 10,000 people and a workforce of 8,000 people.
Upon completion, it will have 2,500 apartments, a hotel, convention centre and other commercial and retail facilities including restaurants and fresh food market. Stage 1, known as “The Green”, has already commenced earthworks and will comprise 340 one- and two-bedroom apartments priced from mid $300,000.
Photo courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
 
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Inner-Brisbane apartment market risks oversupply: Report

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The Reserve Bank is likely to hold off on cutting the cash rate until the second quarter of 2012, according to HSBC chief economist Paul Bloxham, who believes global weaknesses will dictate the RBA’s next move. 
“While we have long thought the Australian economy is in pretty good shape, we have been less comfortable about the global outlook. 
“And despite better global data recently, particularly in the US, and the recent rally in markets, we still remain somewhat sceptical. We still think global weakness and the flow on to the local economy will probably see the RBA cut a bit further. 
“However, a March cut now seems unlikely. We expect one more 25 basis points cut in the second quarter,” Bloxham says in his latest RBA Observer update. 
Bloxham points out that interest rate market pricing has shifted aggressively in the past three weeks – from pricing 75 basis points in cuts over the next year to pricing 45 basis points in cuts. 
Although he says “nothing should be ruled out” in the current uncertain environment, the “economy is still in pretty good shape, the mining boom is continuing and the RBA’s cuts last year are providing some support”.
On the other hand Bloxham expects a clutch of factors – higher mortgage rates, a very strong Australian dollar as well as an “further upward drift in unemployment” and “benign inflation” to motivate one more rate cut.
Bloxham’s comments come as RBA governor Glenn Stevens delivered his opening statement to House of Representatives Standing Committee today where, according to CommSec economist Savanth Sebastian, he made it clear that the “higher cost of wholesale funding and resulting out of cycle rate hikes by the domestic banks was anticipated by the Reserve Bank and was a key reason why interest rates were not cut in February”.
In his address Stevens said: “We repeatedly made clear that the shifting relationship between the cash rate and other [lending] rates in the economy is a factor the Board takes into consideration in setting the cash rate”.
“That will remain the case. Recent developments do not materially affect the capacity of monetary policy to achieve its goals.”
According to Sebastian, Stevens has “delivered the clearest message yet that the Central Bank has a strong degree of confidence in the outlook for the domestic economy”.
“The tone and comments from the testimony is consistent with CommSec’s view that the cash rate will remain on hold until at least the May meeting.”
 
 
 
  
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No rate cut in March, but one more likely by June: HSBC’s Paul Bloxham

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The top end of the housing market in the major metropolitan regions will continue to struggle in 2012, according to Aussie Home Loans founder John Symond, who is seeing signs of life at the more affordable end of town.
“We have seen the property market show some signs of life in recent times because first time buyers and property investors seem to be out there in the price range of $600,000 and $650, 000,” he says in a video on Aussie's YouTube channel.
“So I think the lower price range in the metro cities is going to be active as the months go by; but certainly the higher priced properties are still going to struggle in finding buyers.”
And following on from him re-appearing as the face of Aussie advertising and once again urging borrowers to consider alternatives to the major banks, Symond urged borrowers to see beyond the current marketing spin of NAB.
Symond dismissed NAB’s pledge to offer the standard variable rate of all the major banks throughout 2012 as ‘more clever marketing then substance”.
“When you look at the lowest standard variable and the highest standard variable [of the major banks], you’re only talking a couple of basis points,” he says.
 
 
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Metro housing market sweet spot under $650,000: John Symond

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Diversified property group FKP has reported a 41% drop in sales revenue in its residential development business for the six months to December 2011, with land sales down 20% and apartment sales down 88% compared with the previous corresponding period.
Underlying profit in its residential development division fell 28% to $10.7 million.
FKP’s residential development division includes a number of high-profile projects, notably the Luxe apartment project in Woolloomooloo overlooking the Domain parklands and the residential communities of Saltwater Coast at Point Cook on the outskirts of Melbourne, Rochedale Estates in Brisbane and Peregian Springs on the Sunshine Coast.
The Luxe development, now under construction, is 62% sold with 29 out of the 77 apartment available for sale. One-bedroom apartments in the project are being sold off the plan for $648,000, two-bedroom units for $940,000 and three-bedroom units selling for about $1.3 million. The development launched late last year.
In October the first limited-edition apartment featuring 270 degree views of St Mary’s cathedral, the Sydney CBD skyline and Domain parkland was sold to a local buyer for $3 million having been marketed by Whiterock Capital Partners. 
The developer says results at Saltwater Coast had been impacted by softer market conditions and inclement weather with the lead time between enquiry and settlement increasing over the period.
“In a weak Victorian residential market, sales at Saltwater Coast in Melbourne have slowed from the exceptional levels that were achieved in 2010-11,” says FKP.
There are 1,500 lots remaining for sale at Saltwater, with FKP targeting annual lot sales of between 250 and 300 over the next five years.
“In Queensland, delays in achieving required council approvals directly impacted the number of settlements at The Rochedale Estates,” says FKP.
“However, these approvals have now been attained and increased settlements are expected in the second half of the year.
FKP says sales volumes at Peregian Springs have held up “in a difficult Sunshine Coast market”.
FKP has 4,850 lots across its portfolio currently for sale with an estimated value of  $1.7 billion.
The group plans to build 1,800 apartments over the next six years.
It reported a $43.1 million underlying profit after tax for the half-year, down 21% on the previous period because of a slowdown in residential sales coupled with longer lead times between deposit and settlement of sales for units in the retirement portfolio.
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Luxe in the ’Loo selling well for FKP,  but Victoria and Queensland drag the chain

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The key regional industrial NSW markets of the Illawarra and Newcastle are set for a tough year in 2012, according to the latest Herron Todd White property market report.
Local Herron Todd White agents say steel producer <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/bluescope-steel-closure-will-severely-hurt-illawarra-market-michael-yardney/2011082551290">BlueScope’s decision to close its No. 6 blast Furnace in Port Kembla in August last year</a> (and axe 800 local jobs) will continue to impact on demand for industrial space in the Illawarra.
“While the closure will not have a direct impact on the level of supply, with the facilities likely to remain in BlueScope’s hands, the impact upon the support business will no doubt see a reduction in demand for industrial space within the Illawarra,” the report says.
“With letting-up periods already a concern, any further reduction in demand may result in rental downgrades over the coming 12 months.
“Coupled with the shutdown of the Port Kembla furnace, investors remain uncertain about the overall outlook for the broader economy and the direction of the Illawarra commercial market.”
According to Herron Todd White, commercial investors who require yields greater than 9% have been priced out of the market by owner-occupiers, “who are willing to pay a premium to secure long-term stability”.
And with commercial lending rates forecast to rise, Herron Todd White does not expect an increase in investor activity during 2012.
“However, it’s not all bad news for the Illawarra; quality properties and properties with strong lease covenants, while scarcely traded, remain in demand and will continue to secure higher capital values over 2012”.
North of Sydney, Herron Todd White reports that 2012 has brought uncertainty for the Newcastle and Hunter industrial property markets.
“Having one eye firmly fixed on well publicised global economic troubles, investors are well aware of the continued reliance on the coal trade in Newcastle to prop up the local industrial market,” says Herron Todd White.
However, plans by Nathan Tinkler’s Hunter Ports to create a new rail link to its $2.5 billion coal and remove about 90% of coal trains from residential areas is expected to resolve some of the oversupply issues in and around Newcastle.
Hunter Ports is currently acquiring industrial land adjacent to the Hunter River for the new railway corridor.
“The oversupply has seen land values fall consistently since 2008. However, in 2012 we expect to see this fall in value flatten out, as land is slowly taken up, with no major releases in the pipeline,” says Herron Todd White.
“The slow rate of take-up has been exacerbated by commercial lenders’ inability to lend speculatively on property without pre-commitments in place.
“The general weakening of industrial property values in Newcastle is illustrated by the sale of a fully tenanted complex in the established industrial locality of Cardiff.
“The property has recently exchanged for $4.3 million. The same property previously sold in April 2007 for $5.2 million, indicating a fall in value of 17% and a yield softening of 2.93% since the previous sale.”
Not all areas are performing poorly.
Herron Todd White reports that Beresfield and Thornton continue to remain the most solid areas locally due to the New England Highway and their location midway between Newcastle and Maitland.
“These areas are situated at the intersection of the F3 freeway to Sydney and the New England Highway which provides access to the greater Hunter Valley including mines in Muswellbrook and Singleton.
“Beresfield remains the number one position for distribution companies in the area due to the ease of access to the above mentioned highways.”
 
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Challenging year ahead for Illawarra and Newcastle industrial markets, but some bright spots: HTW

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Australian banks must resist the temptation of lowering credit standards or seeking out unfamiliar market to grow their lending books, APRA chairman John Laker has warned.
Delivering a speech to the Senate Standing Committee on Economics in Canberra this week, Laker says the challenge for banks is “coming to terms with ‘life in the slow lane’”.
“The Australian economy is expected to grow at around its trend pace over the next couple of years.
“However, if the current cautious approach of households and businesses towards taking on additional debt persists, authorised deposit-taking institutions are very likely to be denied the strong balance sheet growth that supported a sustained period of profit increases before the crisis.
“In these circumstances, boards and management may be tempted to chase unrealistic expectations for returns on equity by assuming more risk — through lowering credit standards or seeking new and unfamiliar markets where they may have little comparative advantage — or by aggressive cost-cutting that may weaken risk management capacities.
“These temptations must be resisted in favour of more measured strategic ambitions,” he says.
Laker’s comments come as the major banks highlighted rising wholesale funding costs and lower margins on mortgages.
In his speech, Laker highlighted three factors – the improvement in the US economy; a soft landing for the Chinese economy; and strong growth and the actions of the European Central Bank– that have lifted sentiment and improved conditions in global bank funding markets and allowed all the larger Australian banks to step up bond issuance.
 
 
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Banks must not take risks to achieve growth: APRA chairman

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Administrators of collapsed mortgage broker Refund Home Loans are expected to sign a contract in the next few days to sell the business to State Home Loans.

A letter sent to franchisees by the administrator and seen by Broker News states that an offer has been received from State Home Loans.

Under the conditions of the sale, as many franchisees "as possible" are required to continue to operate under the existing franchise agreement, but the new owner is not liable to for any debts to owed to franchisees including lender commissions or any breaches of franchise agreements by Refund prior to the sale.

As part of the agreement, the franchisees’ loan book will be transferred from Choice Aggregation Services to an unnamed aggregator.

ASIC information shows State Home Loans received a credit licence in January 2011. 

Refund Home Loans collapsed in October last year.
 
 
 
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Refund Home Loans to sell to State Home Loans

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Luci Ellis, head of the financial stability department at the RBA, says home mortgage markets with prudent lending standards do not generally pose risks to financial stability. 
Speaking at the Australian Mortgage Conference 2012 in Sydney today, she told delegates it was not unusual for housing prices to fall, especially if they had been booming previously, or if the economy has turned down. 
“But for that to translate into a big upswing in mortgage defaults, the economy generally has to have weakened first,” she said. 
While Ellis says there is no reason why Australia should follow the same path as the United States, where the collapse in housing prices was accompanied by a rise in mortgage defaults, she says Australian mortgage lenders need to refrain from easing lending standards the way they did in the United States. 
“And so far, you have been refraining. It is a key difference between the two countries, and it motivates the title of my talk today: [Prudent Mortgage Lending Standards Help Ensure Financial Stability],” she says. 
In her talk Ellis sought to clear the misconception that all of lending in the US is non-recourse explaining that the “law in in most US states allows lenders to sue for any remaining shortfall from the proceeds of sale of foreclosed homes”. 
“Instead of imagining a ‘ruthless defaulter’ who walks away from their financial obligations, we need to focus more on capacity to pay and how it can decline. 
“The reality is that things can happen to people that make it difficult to repay their loans – their relationships break down, or they lose their jobs, or a member of the family becomes too ill to work or even dies. 
“We economists and credit risk modellers speak euphemistically of idiosyncratic shocks, but this is what we mean. Financial stability policymakers cannot legislate away these individual setbacks, but we can be alert to circumstances that could make them more common or more damaging,” she said. 
Ellis says policy makers and lenders “need to be alert to falling housing prices, but we also need to keep them in perspective”. 
“There still needs to be an underlying problem with the borrower’s ability to repay before they default. 
Ellis says the RBA does not think it is sensible to “rely on simple rules like a ratio of loan amount to income”, acknowledging that “many Australian lenders sensibly take borrowers’ other obligations and expenses into account when determining how much debt can be serviced, and thus how much they will lend”. 
“Both lenders and policymakers need to think about more than just the explicit loan terms. 
“We must consider the variability of those terms, and of the circumstances of the borrower,” she says. 
“For example, does the borrower have an unusually volatile income or employment history? And have both the borrower and lender allowed enough of a margin to cope with interest rate changes? 
“We must also consider who has the option to vary those loan terms. Australian borrowers’ tendency to repay ahead of schedule is a good example of this. And we must consider whether and how the lender can verify that the information they base their decisions on is true.”
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RBA warns prudent mortgage lending vital in housing downturn

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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