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Hotel giant Accor plans to open 9,000 hotel rooms in the Asia-Pacific region in 2012, mostly in Australia, following its acquisition of the Mirvac hotel portfolio. 
In December Accor acquired Mirvac hotel portfolio for $327 million, comprising about 6,100 hotel rooms. 
Hotels in the portfolio include the Quay West hotels, the Quay Grand at Circular Quay in Sydney as well as the Sebel hotels in Newcastle and Mandurah in Western Australia. 
On the back of reporting an 18% rise pre-tax operating profit to €446 million ($556 million), Denis Hennequin, Accor’s chairman and CEO, says the group easily exceeded its expansion target of 35,000 new rooms in 2011 and aims to add a further 40,000 rooms this year.
“The Asia-Pacific region will represent about 45% of Accor’s pipeline of development in 2012,” he says. 
Accor manages about hotels in Australia, with brands including Sofitel, Pullman, Novotel, Mercure and Ibis. It also owns a fifth of hotel owner Tourism Asset Holdings Ltd and runs most of its assets. 
Accor has 104,000 rooms (609 hotels) in the works, and 45% are planned for Asia Pacific. 
During the year, Accor opened a record 38,700 rooms, mainly under franchise and management contracts. 
Of the total number of new rooms, 47% were located in Europe and 33% in the Asia-Pacific region, consolidating its leadership positions in these geographies. 
By the end of 2011, the group's hotel base stood at 531,700 rooms, half of which were operated under franchise and management contracts.
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lschlesinger-FZcF9M3vE6

Australia the target of Accor hotels expansion in Asia Pacific 

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The premises that house well-known Sydney eateries Otto Ristorante and Kingsleys Steak and Crabhouse on Woolloomooloo’s Finger Wharf have been acquired by global fund manager Aviva Investors Asia for $16.3 million. 
Aviva has acquired Lots 6 and 7, which houses Otto Ristorante covering 747 square metres of retail space, and Lot 8, home to Kingsleys Steak and Crabhouse, which measures 570 square metres. 
Michael Gilbert of Chesterton, who negotiated the sale alongside colleague Michael Stokes, told Property Observer Lot 5, the 540-square-metre premises of Manta restaurant, had been withdrawn from the market for the time being “while works are carried out that will increase the capacity of the restaurant and, naturally, the turnover portion of the rent”. 
<a href="https://www.propertyobserver.com.au/new-south-wales/woolloomooloo-wharf-restaurant-offerings-comes-with-%2425-million-hopes/2011072750928" target="_blank">Four strata retail lots had been listed for sale in July</a> last year with expectations of about $25 million. 
“Looking back $25 million was possibly a tad optimistic, but all sides are happy at [a yield] of 8%,” Gilbert says. 
Gilbert and Stokes sold the premises on behalf of property investment syndicate Quantum Group, which valued them at $16.5 million in 2000. 
In late 2004, the leaseholds covering the four properties were transferred at $22 million to Tower Trust Limited, which replaced JP Morgan as custodian of Quantum’s property trusts. There were 80 members of the syndicate after its $22 million acquisition. 
A consultancy report compiled by Urbis in 2004 revealed that total turnover from the four restaurants rose from $15.3 million per year in 2001 to $21.7 million per year in 2004, equating to an average turnover productivity level of $12,400 per square metre. 
In a December 2007 investor presentation the properties were valued at $28.5 million, a 30% increase on the purchase price, with a gearing level of 58%.
 
 
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Woolloomooloo premises of Otto Ristorante and Kingsleys sell to global fund manager

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The REA Group needs to embrace print media, stop competing with majority-owner News Ltd for advertising clients and expect fiercer competition from both online and print competitors, says former senior Telstra executive and RP Data board member Ted Pretty.
In a letter published in Australian Financial Review, Pretty hit back at <a href="https://www.propertyobserver.com.au/industry-news/fairfaxs-planned-weekly-review-deal-mind-numbing-rea-boss/2012022153487" target="_blank">critical remarks made by REA Group CEO Greg Ellis</a> about the decision by Fairfax, owner of REA’s nearest online rival Domain, to buy 50% of Anthony Catalano’s estate agent industry-driven The Weekly Review.
“When Greg Ellis, CEO of online real estate ad company REA Group says Fairfax’s acquisition of The Weekly Review is frankly beyond him, he is absolutely right. Ellis is a solid guy, but we all learn the hard way that hubris can lead to mistakes,” writes Pretty.
“For real estate unlike the jobs, travel and dining verticals, there is a strong case to be made for a bundled offering of online advertising with high-quality regional/local print, particularly when the local agents own a chunk of the print.”
Petty was group managing director operations at Telstra between 1997 and 2005 and also sat on the board of RP Data Ltd for six years between 1996 and 2011.
He currently sits on the board of Dubai-based Real Estate Investment and Development Information Network, which offers online real estate information services to estate agents in Dubai.
“While it is true that the traditional classifieds are dead, the glossies are not. Property is our biggest asset class and deserves more respect,” he writes.
According to Pretty, REA’s “Achilles’ heel” is its “seemingly unwillingness to embrace its brothers at News to ensure its franchise is unassailable in the long term”.
Pretty expects REA to face challenges as “Fairfax’s Nic Cola seeks to outspend them on advertising the Domain brand… Michael Hannan’s Homehound site is expected to re-emerge with a print strategy, and OntheHouse is enjoying a return to market favour and quietly building its online reach for modest cost.”
He also says the market should also watch out for the “Ray White family’s next steps” – <a href="https://www.propertyobserver.com.au/industry-news/sam-white-quits-rea-board-to-focus-on-the-family-business/2012010952996" target="_blank">Sam White recently stepped down as a member of the REA board</a>.
 
 
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REA needs to embrace print media and watch out for competitors: Ted Pretty 

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Real estate group Colliers is urging Australians to take part in its eight-day global giving campaign, which launched yesterday in Australia and more than 60 countries around the world. 
Colliers is the founding sponsor of Everyone Gives, which asks that participants make a small donation to a charity of their choice through the <a href="https://www.everyonegives.org/">Everyone Gives</a> website and then use their social networks to invite friends, co-workers, clients and family to give. 
Real estate group PRD Nationwide tweeted that it had already pledged $112,235 and urged others to "Come on, PLEASE get involved! Spread the word".
“It’s exciting because it’s never been done before,” says John Kenny, Australasia Chief Executive of Colliers International. 
“This isn’t another one-off charity donation,” he says. “This is about enabling individuals to engage their personal connections to give more to the charities they are passionate about, and watch as the power of one donation multiplies.” 
Participants make a small donation – such as $5 – to a charity that’s important to them, tell five friends and ask those friends to each tell five more. 
“One donation becomes five, five becomes 25 and 25 can become hundreds,” Kenny says. 
Those who make donations can track their giving “tree” and that of their friends’ via on the Everyone Gives website.” 
Hundreds of charitable organisations have joined Everyone Gives in advance of the launch including United Way, the Property Industry Foundation Youngcare, Juvenile Diabetes Research Foundation and OzHarvest. 
The entirety of each donation will go directly to the charity a participant selects. If participants are passionate about a particular charity not currently listed on the Everyone Gives website, they can submit this charity by emailing <a href="mailto:info@everyonegives.org">info@everyonegives.org</a>. 
Charities can email <a href="mailto:info@everyonegives.org">info@everyonegives.org</a> to add themselves to the website. 
Those interested can pre-register on the <a href="https://www.everyonegives.org/">Everyone Gives</a> website or follow the event on <a href="https://www.facebook.com/EveryoneGives">Facebook</a>, <a href="https://www.twitter.com/EveryoneGives">Twitter</a> or <a href="https://www.tinyurl/EveryoneGives">LinkedIn</a> for updates.
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Colliers takes the lead on global giving charity drive

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Strong population growth, interest rates remaining at historically low level, “fierce competition between lenders” and low unemployment are some of the tailwinds that could prolong the recovery in the mortgage lending and housing market in 2012, according to Mortgage Choice CEO Michael Russell.
“Over the course of the calendar year, we’d like to see the market continue to rebound and there are reasonably strong tailwinds to suggest it just may,” Russell said following the release of “solid” interim results to December.
Mortgage Choice reported a 16.7% increase in loan approvals over the six-month period from $4.8 billion to $5.6 billion, with the mortgage broking franchise’s share of the home loan market rising from 4.1% to 4.5% over the six-month period, its highest level since 2006.
“The good news was the rebound in housing finance [over this reporting period] with December a particurlarly strong month with the highest value of commitments in two years,” says Russell.
“This auger well for housing finance market and all participants within it.”
However, he also noted a number of headwinds that could curtail the recovery, including the unpredictably created in the minds of consumers by the major banks moving rates outside of the RBA (“the new normal”), funding costs impacting lenders, the continued uncertainty in Europe, ongoing housing undersupply issues and consumers continuing to deleverage their debt and save more.
Despite the increased competition in lending Russell said attempts by the federal government to create a “fifth pillar” (through measures such as the ban on exit fees) outside of the big four banks had failed, with the smaller non-bank lenders and credit unions still struggling to penetrate the market.
The big four banks accounted for 60% of all loans approved by Mortgage Choice over the six-month period, unchanged since previous periods, with ANZ and the Commonwealth Bank accounting for 43% or more than two out of every Mortgage Choice loan approved.
Including big four bank subsidiaries Bankwest and St George, the major banks’ share of Mortgage Choice approvals stands at 76%.
Russell says non-banks and credit unions are struggling with higher funding costs than the major banks though many of them continue to offer cheaper rates then the major banks.
“It may be an issue of perceived flight to quality,” he says.
Taking a look at the bottom line, Mortgage Choice reported profits of $6.4 million for the six months to December 31, down 26% on the $8.8 million recorded in the previous six-month period to June 30 2011.
The drop in profit was attributed to higher operating expenses and lower-than-expected revenue from comparison website helpmechoose.com.au. The website made a $1 million loss for the six-month period.
Russell says the group has put in the necessary measures to remedy the results being achieved through the online venture and expects it to become profitable when full-year results are reported in mid-2012.
The group’s total loan book written by brokers in its franchise network and through aggregation arm LoanKit was up 5.6% to $43.5 billion.
Mortgage Choice grew the number of brokers in Loankit by 20% to 234 over the six-month period, with the business recording monthly settlements in excess of $100 million.
The group has 372 franchises (up from 354 a year ago), with the biggest proportion in NSW (134).
Settlements per loan consultant increased from 28 to 32.
Mortgage Choice brokers earned a collective $68 million in commission payments for originating loans, unchanged from the same six-month period in 2010.
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Economic tailwinds could prolong mortgage lending recovery: Mortgage Choice 

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The Reserve Bank has acknowledged the need for the major banks to raise interest rates outside of the official rate cycle due to the higher price they have paid recently for covered bonds.
Released after the major banks all pushed up their variable mortgage rates by between 0.06% and 0.1%, the minutes acknowledged the higher price the banks paid for funding.
The Commonwealth Bank and Westpac were forced to pay a higher price for $6.6 billion worth of covered bonds in mid-January.
The two banks were forced to pay 175 basis points and 165 basis points respectively over the benchmark swap rate.
“The Australian banks had issued sizeable amounts of covered bonds in a number of offshore markets in recent weeks at these higher spreads,” the RBA February minutes say.
“Furthermore, the cost of swapping funds raised in offshore markets into Australian dollars had increased in recent months.
“There had also been two large issues of covered bonds in the Australian market, which had repriced the local bank debt curve significantly higher.
“Over the same period, Australian banks continued to compete actively for deposits, which resulted in the reductions in most deposit rates not fully matching the recent reductions in the cash rate.
“Collectively, these developments had increased banks’ overall cost of funding relative to the cash rate and had narrowed the difference between banks’ lending rates and funding costs.”
However, the higher funding costs have been dismissed by analysts from investment bank Societé Generale.
“Our calculations suggest that almost all sources of funding of Australian banks except long-term overseas are cheaper than their post-GFC highs and have kept falling since the second half of 2011 in absolute terms,” the bank says.
ANZ has hit back at this report, telling The Australian Societé Generale makes the simple mistake of analysing absolute funding costs, rather than the funding costs relative to the official cash rate.
“We agree that absolute funding costs have been falling, but relative to the official cash rate they have increase.”
Yellow Brick Road founder Mark Bouris agrees that funding costs for new lending have risen but says the game is about “averaging and smoothing out your costs, not just passing them on to your customers”.
 
 
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RBA acknowledges banks' higher funding costs

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Mobile phone stores were the top-performing speciality tenants in the 29 shopping centres that form part of Colonial First State’s retail trust, according to interim results for the six month to December 31.
Mobile phone stores sales increased by 22% in the 12 months to December 31 to $103.7 million compared to $85 million in 2010.
Food retailers (annual sales up 8.8% to $180 million) and food caterers (up 6% $374 million) were the other strong performers among speciality store tenants.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/mobilephone1large.jpg"><img src="/images/stories/mobilephone1.gif"></a>
In total speciality stores annual turnover increased by 3.4% in 2011 to $2.6 billion generating turnover per square metre of $9,086 compared with $8,788 in 2010.
Among the strategies CFS Retail will embrace in 2012 will be “remixing tenancies to optimise performance” and “supporting retailers by advancing online and social media strategies”.;
On a comparable growth basis (including centres that are not undergoing or have not undergone substantial redevelopment in either period of comparison), speciality tenants were second strongest-performing tenants, with turnover increasing by 2.9%, ahead of supermarkets (2.1%). 
The strongest tenant category was “other retail”, which includes cinemas, travel agents, auto accessories, lotto and other entertainment and non-retail stores, with sales growth of 3.3%. 
Department store sales slumped by 6.1% while discount stores sales fell 2.1%. 
The REIT noted a subdued retail sales growth environment with household consumption around trend.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/mobilephone2large.jpg"><img src="/images/stories/mobilephone2.jpg"></a>
Across its portfolio it achieved 99.7% occupancy. 
The shopping centre portfolio’s valuation increased to $8.05 billion from a $7.9 billion valuation for the first half of the year after 16 of its assets were re-valued during the period.
Including the four DFO centres, the portfolio is worth $8.6 billion.
Its assets include the Chadstone Mall, the biggest in Australia, which is set to undergo a $520 million refurbishment.
It also currently building Emporium Melbourne between Lonsdale Street and Little Bourke Street, which upon completion in late 2013 will introduce 43,856 square metres of new, retail floor space in the heart of Melbourne’s CBD.
Net property income for the trust increased 11% to $278.5 million over the six-month period while net profits were down 42% to $201.7 million.
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Mobile phone stores ringing the till at Colonial First State shopping centres

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REA boss Greg Ellis has taken the unusual step of commenting on what its closest rival Fairfax Media’s Domain.com.au is doing following the release of interim results yesterday.
Having reported a 32% jump in first half net profits to $41.2 million but a <a href="https://www.propertyobserver.com.au/industry-news/rea-hit-by-queensland-real-estate-agency-contraction/2012022153479">second successive drop in paying real estate agencies</a>, Ellis scoffed at Fairfax’s proposed $35 million investment in 50% of MMP Holdings, publisher of real estate listings magazine The Weekly Review.
Under the proposal, the joint venture would roll the Domain brand across the MMP group, with the aim of build a stronger internet and app presence in the real estate industry.
Asked what he thought about the deal at an analyst briefing yesterday, Ellis said: “It’s mind-numbing. It’s not what you’d expect at No.2 who’s declining to do.”
“Outsourcing your media business is a concept that is frankly beyond me.”
Fairfax media CEO of marketplaces Nic Cola hit back at Ellis and said the investment was a “good deal”, which would add to its earnings.
Fairfax’s investment in MMP Holdings is still to be approved by the ACCC.
<a href="https://www.propertyobserver.com.au/industry-news/fairfax-pays-%2435-million-for-half-of-the-weekly-review/2011122352946">The Weekly Review was set up by former Fairfax property editor and marketing manager Anthony Catalano in 2010</a>, featuring glossy articles and real estate listings and distributed to about 200,000 people from Melbourne's affluent bayside suburbs to middle Camberwell and also – via a separate edition – to the Heidelberg and Ivanhoe "green belt".
REA Group is 61% owned by Fairfax rival News Limited, which yesterday increased its weight on the board with the appointment of advertising man Hamish McLennan executive vice-president, office of the chairman at News Corporation.
 
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Fairfax’s planned Weekly Review deal ‘mind numbing’: REA boss

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The US Masters Residential Property Fund, which invests in residential property in New Jersey across the Hudson River from Manhattan, bought a further eight properties in January, taking its total portfolio to 101 properties worth US$20 million ($18.6 million).
The fund bought six properties in its usual local of Jersey City, but also ventured 10 kilometres south to acquire two properties in Bayonne, a city with a population of 63,000 and large Italian, Irish and Polish communities.
In Bayonne, the fund paid $204,000 for a two-family detached property on 28th Street featuring one four-bedroom apartment and one three-bedroom apartment and $139,000 for a two-family attached property featuring two three-bedroom apartments on 47th Street, both with estimated annual net yields of 8%.
Dixon Advisory managing director and manager of the US fund Alan Dixon tells Property Observer Bayonne is a town the team has really liked from day one.
“Whilst it is still very well connected by mass transit, it is less of a Manhattan commuter town and more of a community of its own.  Most Bayonne residents are very loyal to the town and more likely to have family history there, or have met/married/partnered with someone from Bayonne. Additionally Bayonne has a very strong presence of public servants such as policeman and fireman who reside in the area and make great tenants,” he says.
“The median household income of $53,387 is above the national average of $46,326.  The housing stock in Bayonne is perfect for what we are trying to do.
“In addition to apartment blocks, there is a significant amount of two-family and three-family homes that have fallen that have fallen substantially in price since the peak in 2006, but have remained very popular with renters who want the feel of living in a home rather than a large apartment block,” he says.
Dixon says the housing stock in Bayonne looks very similar to the properties in Jersey City, but Bayonne has a more open feel and is perhaps a little less hectic than Jersey City.
“There are more parks and open spaces and the industrial feel of the city is continuing to transform over time,” he says.
In addition to the two properties the fund has closed in Bayonne and announced to the market, there are another 11 properties under contract that it will be closing during coming months.
“We have commenced a process to increase the areas we are actively reviewing properties within Hudson County.  In particular, we are seeing promising signs in North Bergen, Union City, West New York and Weehawken.  At this stage, however, the large bulk of successful purchases have been in Jersey City and now in Bayonne,” he says.
The remaining six properties purchased in Jersey City in January ranged in price from $143,000 to $243,000 with yields from 8.4% to 10.1%.
The fund also received conditional acceptances on a further eight properties over January.
In January <a href="https://www.propertyobserver.com.au/overseas/dixon-advisory-attracts-815-more-aussies-to-take-a-punt-on-us-housing-investment/2011112952603" target="_blank">33 investors took part in the third and final stage of Dixon Advisory’s second capital raising offer</a> to buy shares in the fund. In total $1.27 million was invested in the third stage taking the total equity raised to $31.14 million from 929 investors.
In its first capital raising round ahead of its float on the small cap NSX, the fund raised just under $70 million from 1,500 investors.
The fund’s share is currently trading at $1.55 having listed at $1.70.
It has a market capitalisation of $96 million.
 
 
 
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Dixon Advisory’s US portfolio up to 101 properties as it moves further into New Jersey suburbs

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REA Group has reported a 4% drop in paying real estate offices on its listings websites <a href="https://www.realestate.com.au/buy">realestate.com.au</a> and <a href="https://www.property.com.au/buy">property.com.au</a>, the second consecutive six-month period that numbers have fallen.
The company shed more than 200 real estate offices 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).
Paying agent office numbers are down more than 300 from 9,688 recorded for the corresponding six-month period in 2010.
REA Group attributed this slight decrease “mainly due to the contraction in Queensland agency numbers”.
The Real Estate Institute of Queensland started including property listings from its own members from September 2011 on its own website, reiq.com. On its launch the REIQ said about 80% of real estate agencies across Queensland were accredited with the institute.
REA paying agent numbers
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="308">
Six month period to end of:
</td>
<td valign="top" width="308">
Paying agent numbers
</td>
</tr>
<tr>
<td valign="top" width="308">
December 2011
</td>
<td valign="top" width="308">
9,324
</td>
</tr>
<tr>
<td valign="top" width="308">
June 2011
</td>
<td valign="top" width="308">
9,536
</td>
</tr>
<tr>
<td valign="top" width="308">
December  2010
</td>
<td valign="top" width="308">
9,688
</td>
</tr>
<tr>
<td valign="top" width="308">
June 2010
</td>
<td valign="top" width="308">
9,612
</td>
</tr>
<tr>
<td valign="top" width="308">
December 2009
</td>
<td valign="top" width="308">
9,329
</td>
</tr>
</tbody></table>
 
A graph released with its full-year results to the end of July 2011 showed that paying agent numbers had started to plateau from around June 2008 after steep growth in the preceding seven years.
<img src="/images/stories/rea.gif">
Unique web browser numbers per month contracted by 3% from 7.1 million to 6.9 million for the six-month period year-on-year. In June 2010, REA Group had 6.56 million unique monthly browsers.
Residential agent revenues earned by realestate.com.au and its affiliates increased by 11% to $74 million for half-year to December 31, according to interim results posted by publisher of the site REA Group.
Income earned from residential listings remains the bread and butter of the REA business, accounting for 62% of the $119.8 million earned over the six-month period, an increase of 16% on the $103 million earned in the corresponding period in 2010.
However, it still remains far ahead of its nearest competitor, Domain.com.au, which has 3.7 million unique browsers, and other rivals on all key metrics.
According to February Google Ad Planner figures <a href="https://www.propertyobserver.com.au/industry-news/realestate.com.au-miles-ahead-of-online-property-portal-rivals/2012021653422">Realestate.com.au had 3.8 million unique visitors and 300 million page views for January</a>. This was followed by Domain, Real Estate View and Home Hound at the top of the list.
According to Nielsen Online Ratings released in October last year, realestate.com.au ranked 12th in a list of top online brands – there were no other real estate listings websites in the top 15.
Aside from realestate.com.au, the REA Group also publishes listings and rentals on property.com.au and provides property information via homeguru.com.au and ozhomevalue.com.au.
REA Media, its display media advertising segment which sells ads across all its websites, achieved revenue of $32.7 million up 33% compared to the same period in 2010.
Its commercial listing website, realcommercial.com.au earned $12.7 million, accounting for 11% of revenue while
Overall, the website posted a 17% rise in earnings to $58.4 million. 
According to February Google Ad Planner figures <a href="https://www.propertyobserver.com.au/industry-news/realestate.com.au-miles-ahead-of-online-property-portal-rivals/2012021653422">Realestate.com.au had 3.8 million unique visitors and 300 million page views for January</a>. This was followed by Domain, Real Estate View and Home Hound at the top of the list.
According to Nielsen Online Ratings released in October last year, realestate.com.au ranked 12th in a list of top online brands – there were no other real estate listings websites in the top 15.
Aside from realestate.com.au, the REA Group also publishes listings and rentals on property.com.au and provides property information via homeguru.com.au and ozhomevalue.com.au.
REA Media, its display media advertising segment which sells ads across all its websites, achieved revenue of $32.7 million up 33% compared to the same period in 2010.
Its commercial listing website, realcommercial.com.au earned $12.7 million, accounting for 11% of revenue while
Overall, the website posted a 17% rise in earnings to $58.4 million.
REA Group also announced the appointment of advertising man Hamish McLennan as a non-executive director and board member. He is the former chairman and CEO of advertising agency Young &amp; Rubicam and was recently named executive vice president, office of the chairman at News Corporation, with responsibility for enhancing News Corporation’s global brand partnerships across traditional and digital media platforms.
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REA hit by Queensland estate agency contraction 

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

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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.

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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.

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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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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."

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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.

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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.

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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.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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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.

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“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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