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Nearly one in two (46%) home owners who entered the property market less than two years ago is looking to refinance their mortgage, according to LJ Hooker Finance.
Recent home owners are more than twice as eager then the market as whole – 22% of the more than 1,000 active property participants polled by Galaxy Research on behalf of LJ Hooker Finance said they were looking to refinance their home loan in the near future.
The survey was carried out in September 2011, before the interest rate cuts of November and December and independent rate increases announced by banks this month.
Financial products comparison website RateCity.com.au recorded a 50% increase in home loan traffic in the first two weeks in February compared with the whole month of January, indicating that the appetite for refinancing might have risen even higher than levels recorded by LJ Hooker Finance in the latter half of 2011.
LJ Hooker CEO Janusz Hooker says the RBA’s decision to hold the cash rate in February should encourage consumers to review their financial situation and plan for the year ahead.
"After the 2011 interest rate cuts, home owners are closely watching the market to see what will happen next. Our research has shown that new home owners are concerned about interest rates and are very much aware that a spike in the cost of living could affect their home loan repayments,” says Hooker.
Of those planning to refinance their home loans, 20% cite interest rates as their primary concern, with a further 17% need to refinance to consolidate their debts.
The survey indicates that homeowners are concerned about the rising cost of living with almost half (42%) of those surveyed claimed they were living within their means but felt that an unexpected large bill would put pressure on their finances. "Although Australians are taking steps to ensure that they are meeting their financial commitments, new home owners are clearly feeling increased pressure to stay on top of bills and mortgage payments," says Hooker. Not all home owners are considering refinancing due to money worries.
Almost one-third (32%) of those looking to refinance were hoping to purchase a second, or investment, property, while a further 14% believe there are better home deals available.
Paul Ryan, CEO of non-bank lender Intouch Finance, says he is growing frustrated at the “spin” being put out by the major banks who continue to “cry poor” while “enjoying record profits”.
“Ultimately it’s up to the consumer to hold the banks accountable.  In the last two weeks we’ve seen an increase in rates coupled with the announcement of major job losses.  I want consumers to know that there are other options and smaller lenders who are offering cheaper rates and make service an absolute priority of their business,” says Ryan. 
Intouch Finance offers a standard variable rate of 6.7%, which is 61 basis points below that of NAB’s 7.31% standard variable rate, the lowest of the big four banks and 76 basis points lower than Westpac, which has the highest standard variable rate of the big four. 
Ryan estimates that on a $300,000 loan over 30 years, an Intouch Finance borrower would be saving $153.60 per month or $55,000 over the life of the loan compared with the Westpac customer and $122.92 per month or $44,0000 over the life of the loan compared with a NAB customer. 
“Don’t fall for the big four crying poor ” says Ryan.  “Get on the phone, get some quotes and then call your bank to find out what it’s prepared to do to keep your business.  If the answer’s nothing, then maybe it really is time to make a change.”
To find out all you need to know about refinancing your mortgage, sign up for Property Observer’s free webinar hosted by Mortgage and Finance Association of Australia chief executive Phil Naylor tomorrow at 12.30pm: <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=c30855319a&amp;e=a6b9e3b424" target="_blank">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>
{module What do you intend to do given the current interest rate fluctuations?}
 
{module Have you changed lenders in the last six years?}
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One in two new home owners looking to refinance: LJ Hooker

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The Reserve Bank noted signs of stabilisation in house prices in some capital cities, but has left the door open to further rate cuts should global demand ease further, its <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/07022012" target="_blank">February monetary policy statement</a> has revealed.
“While housing prices had declined over 2011, there were signs of stabilisation in some major cities around the end of the year,” says the statement.
The central bank does name the major cities show signs of stabilisation.
However, it notes continued weak conditions in building construction and mortgage lending.
“Building construction activity remained subdued, reflecting the pull-forward from the earlier boost to grants to first home buyers, slower population growth, tight access to credit for developers and lowered expectations of capital gains. Housing credit continued to grow a little more slowly than household incomes,” says the RBA.
On the key measure of inflation, the RBA says underlying inflation is running at around 2.5%, “in the midpoint of the medium-term target range”.
“With growth expected to be close to trend and inflation consistent with the target, the board considered that this setting was appropriate for the overall macroeconomic outlook. They judged that if demand conditions were to weaken materially, the inflation outlook would provide scope for a further easing in monetary policy,” the statement concludes. 
The statement notes that the two rate cuts in November and December had been “passed through to most lending rates in the economy, which were now around average levels”. 
While noting “significant differences in conditions across sectors” it says the outlook for GDP growth remains close to trend over the next couple of years. 
“The recent inflation data had confirmed that, in underlying terms, inflation was now at the midpoint of the target range. Inflation was expected to remain consistent with the target over the forecast period. 
“Credit growth remained modest, though there had been a slight increase in demand for credit by businesses, and housing prices had showed some stabilisation around the end of 2011, after having declined for most of the year. The exchange rate had risen since early December,” says the RBA. 
The RBA also reports an improving outlook for a still “fragile” Europe. 
“While the financial situation in Europe remained fragile, the likelihood of an extremely bad outcome seemed to have diminished somewhat over the previous couple of months, partly reflecting actions by the European policymakers. 
“This, together with stronger economic data from the United States, had provided a mild boost to confidence in financial markets. Growth in China had moderated as intended, but on most indicators had remained quite robust through the second half of 2011. 
“While there were still many uncertainties, the central forecast was for growth in the global economy in 2012 to be about 0.5% below trend. Australia's major trading partners were expected to continue to grow more quickly than the world as a whole.”
 
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RBA notes ‘signs of stabilisation’ in house prices in some capital city markets 

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Mirvac has sold 55% of its first Harold Park residential precinct in Glebe in the first two months of marketing the project off the plan, according to its interim results for the six months to December 2011.
The developer sold 155 of the 296 apartments released for sale in the first two months of the marketing campaign with prices ranging from $495,000 to $1.7 million.
The developer began marketing the scheme, which will be built on the site of the Harold Park paceway, in November 2011.
Off-the-plan buyers have included media personality <a href="https://www.propertyobserver.com.au/developments/deborah-hutton-buys-two-off-the-plan-units-in-mirvac-s-glebe-harold-park-project/2011121252810" target="_blank">Deborah Hutton, who bought two apartments in December</a>.
In its Yarra’s Edge precinct in Melbourne’s Docklands Mirvac has also sold 47 out of the 82 luxury river homes, with prices ranging from $885,000 to $7 million and has exchanged contracts on 161 apartments in <a href="https://www.propertyobserver.com.au/developments/docklands-development-yarra-point-three-quarters-sold-as-mirvac-says-the-price-is-right/2011110252174" target="_blank">the 31-storey Yarra’s Point tower</a> with prices ranging from $500,000 to $2.4 million. No settlements have been recorded for the project. Also at Yarra’s Edge, boat owners have snapped up 96 out of the 149 marina berths with prices ranging from $120,000 to $225,000.
<img src="/images/stories/mirvacfeb21.gif">
In total, Mirvac exchanged pre-sale contracts of just over $1 billion in its residential projects over this period, a 20% increase over the first half of the year, and achieved 849 residential lot settlements over the six-month period.
More than half of off-the-plan buyers have come from NSW ($596 million) followed by Victorian buyers ($325 million), Queensland ($76 million) and WA ($11 million).
Managing director Nicholas Collishaw says Mirvac has commenced on the path of restring gross margin of between 18% and 20% on its residential projects and is also on target to achieve 1,800 sales in the 2012 financial year.
Collishaw says there has been strong interest in the Harold Park project, which is still two years away from completion.
He says Mirvac will continue to expand into areas of high demand for medium-density living.
The developer has registered an increase in first-home buyers (comprising a quarter of buyers) and investors (27%) with upgraders and empty-nesters comprising the majority of buyers (48.3%)
The developer says the fundamentals underpinning the housing sector are starting to improve. “Pop growth is starting to pick up, while the combination of declining property prices, rising incomes and lower borrowing costs have resulted in an improvement in housing affordability, says Mirvac.
“The changing preference of new migrants and the ageing of the population suggest the growing preference towards medium density will continue.”
The outlook is strongest for the NSW residential market, where Mirvac has the heaviest weighting (34%). Mirvac anticipates flat markets for WA and Queensland in 2012 and expects the Victorian market to decline in 2012 as it underperforms compared with other states.
Mirvac highlighted an increasing demand for apartments and semi-detached and terraced housing from migrants in its presentation.
Upon completion the 10.6-hectare Harold Park site will comprise 1,250 dwellings of one-, two- and three-bedroom apartments and terraces, with construction due to commence in May this year.
The project has received approval from the NSW state government, with the City of Sydney’s Central Sydney Planning Committee to shortly decide on the first of the development applications for the development.
Mirvac also achieved 46% pre-sales of the 231 lots released in it Pinnacle Waterside development in Rhodes in NSW.
For the six-month period, Mirvac reported a 1% rise in operating profit for the six month to December 31 of $201.5 million, compared with $201 million in the corresponding period in 2010.
 
 
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Mirvac’s off-the-plan sales jump 20%  in second half of 2011

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The transportation and shopping hub of Chatswood on the Sydney lower north shore registered 450 house and unit sales worth a combined $382 million in 2011, with its ranking on the <a href="https://www.propertyobserver.com.au/residential/mosman-heads-top-100-list-with-kew-paddington-and-castle-hill-climbing-the-ranks-and-hope-island-and-vaucluse-tumbling/2012021453376" target="_blank">RP Data Top 100 list of house and unit aggregate sales</a> soaring from 34th to 17th in the space of a year.
The year was dominated by unit sales, with 308 apartments sold during the year at a median price of $605,000. Off-the-plan sales, including the sell-out of Mirvac’s 42-storey Era tower, were not included.
There were 142 house sales over the year at almost double the unit median at $1.2 million.
RP Data research shows that <a target="_blank" href="/news">Chatswood</a> unit prices increased by 4.2% with a yield of 4.4% over the past year while house prices managed growth of 0.6%.
Chatswood has a predominantly Asian population and is well known for its Asian eateries and vibrant shopping culture centred along Victoria Avenue. Shopping centres include the Westfield Chatswood and Chatswood Chase Sydney.
It continues to attract Asian buyers and investors, both locally and offshore, according to local estate agents.
McGrath agent Jon Dundas-Smith notched up three big sales in Chatswood to Chinese buyers last year, telling the Sydney Morning Herald a lot of money was coming in from China.
The area has also benefited from the parents of Asian students picking up properties and putting them in their children’s names – the downside is they have to be sold when they leave the country.
The suburb is also the focus of a commercial property revival, with demand for office space picking up as Chatswood’s status as a sought-after fringe business location rises.
According to the most recent Property Council of Australia Office Report the vacancy rate in Chatswood offices decreased from 17% to 10.7% over the six-month period to December 2011.
Investment group FKP is currently developing a new alfresco restaurant, café and shopping hub as part of its refurbishment of 15-storey office building.
The Avenues will be developed outside 465 Victoria Avenue in the western precinct of Chatswood bordering Railway Street, Brown Street and Victoria Avenue and is due for completion in mid-2012.
According to property managers RUN Property, Chatswood experienced above inflation growth in rents from January 2011 to January 2012, with weekly rents increasing from $570 a week to $600 over this period.
<img src="/images/stories/chatswood1.jpg">
Daryl Katz from Shead Property Chatswood is currently selling a 65-square-metre two-bedroom renovated apartment (pictured above) on Hampden Road  in neighbouring Artarmon with offers sought in excess of $460,000.
It last sold in December 2005 for $352,500.
The property is currently rented at $450 per week, representing a yield of just over 5% at the listing price.
Katz describes the property as an “outstanding entry point for first-time investors, or to complement an existing investment portfolio”.
<img src="/images/stories/chatswood2.jpg">
Saesar Liu from Great Fortune Investment Chippendale is selling a one-bedroom apartment on Help Street that includes use of a cross-shaped swimming pool (pictured above), complete with palm trees. The apartment is up for sale in the mid- $400,000s.
It last sold in July 2006 for $305,000
It is currently rented at $450 per week. At a sales price of $450,000, this equates to an estimated yield of 5.2%.
Main photograph by Christopher Chan
 
 
 
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Hotspots: Brisk unit sales and commercial property revival in Chatswood  

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Property developer Lend Lease’s retail portfolio increased in value by 6% over the six-month period to December 2011.
Over the six-month period, the portfolio increased in value from $4.84 billion to $5.13 billion.
The portfolio comprises 701,000 square metres of retail space.
Major purchases made this year include the Cairns Central Shopping Centre.
Lend Lease’s Australian Prime Property Fund acquired the far north Queensland shopping centre in its entirety after paying $261 million to buy the 50% share held by joint owner Westfield.
The largest asset it manages in the portfolio is the 112,000-square-metre Erina Fair on the New South Wales central coast.
 
 
 
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Lend Lease retail portfolio value up 6% in a year

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Investor interest is likely to be high for the latest group of 7-Eleven service stations, which will go to auction on March 22.
Ten service stations will go under the hammer in NSW ranging in size from just 955 square metres for a West Pennant Hills service station to South Windsor property measuring 4.7 hectares (by the far the biggest to be sold to date), in the Hawkesbury municipality.
Initial annual rentals for the 10 service stations range from $160,000 to $320,000 with a guaranteed 4% annual rent increase.
The stores are part of the 250 retail sites acquired by 7-Eleven following its $61.1 million acquisition from Mobil Retail in May 2010. Each includes a service station, convenience store and customer parking
The South Windsor property is located close to the Bligh Park shopping centre and on the major access path to the Windsor town centre and Penrith. 
The 4,465-square-metre Bankstown service station has the highest annual rental of $320,000. It is located close to the main commercial and retail centre approximately 16 kilometres from the Sydney CBD.
The full list of NSW services stations is:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="319"> </td>
<td valign="top" width="151">
Size
</td>
<td valign="top" width="146">
Annual rental
</td>
</tr>
<tr>
<td valign="top" width="319">
South Windsor, 735 George Street 
</td>
<td valign="top" width="151">
47,370 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Roseville, Cnr Pacific Highway &amp; Boundary Street
</td>
<td valign="top" width="151">
2,598 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Bankstown, 180 Stacey Street
</td>
<td valign="top" width="151">
4,465 sqms
</td>
<td valign="top" width="146">
$320,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Greenacre, 301-313 Hume Highway
</td>
<td valign="top" width="151">
8,268 sqms
</td>
<td valign="top" width="146">
$300,000
</td>
</tr>
<tr>
<td valign="top" width="319">
West Pennant Hills, 552 Pennant Hills Road
</td>
<td valign="top" width="151">
955 sqms
</td>
<td valign="top" width="146">
$160,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Parramatta, 81 Victoria Road
</td>
<td valign="top" width="151">
2,802 sqms
</td>
<td valign="top" width="146">
$170,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Dapto, 125 Princess Highway
</td>
<td valign="top" width="151">
2,335 sqms
</td>
<td valign="top" width="146">
$200,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Newport, 307-311 Barrenjoey Road
</td>
<td valign="top" width="151">
1,435 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Burwood, Cnr Shaftsbury Road &amp; Parramatta Road
</td>
<td valign="top" width="151">
4,549 sqms
</td>
<td valign="top" width="146">
$170,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Minchinbury, 815 Great Western Highway
</td>
<td valign="top" width="151">
2,419 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
</tbody></table>
All properties come with new 15-year leases, with three further renewal options of five years each and 4% annual fixed rent increases. The tenant pays all outgoings except land tax.
The 4,549-square metre Burwood service station sits on the most valuable land – estimated at $4 million – and has the highest estimated 2011 land tax bill of $64,000.
The 2,335-square-metre Dapto property is valued at $400,000 and has an estimated land tax bill of just $164.
The properties are being marketed by John Macree from Jones Lang LaSalle, who led the 2011 NSW campaign, <a href="https://www.propertyobserver.com.au/retail/high-yields-for-7-elevens-continue-to-attract-investors/2011120752720">which culminated in 10 sales of 7-Elevens at auction</a>.
Macree could not provide a price guide, but says the 2010 sales results “may be useful as a guide”.
“Buyer appetite for these passive investments secured by long-term leases remains strong,” he says.
Last year commercial property investors snapped up more than $90 million worth of refurbished 7-Eleven service stations across NSW and Victoria with prices ranging from $1.6 million for a 1,900-square-metre service station in Bayswater East in Melbourne to up to $4.6 million for a 2,824-square-metre site in Turramurra.
A further six Queensland 7-Elevens are to be sold by Jones Lang LaSalle’s Ben McGrath.
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NSW 7-Eleven service stations expected to garner strong investor interest

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The decision by the major banks and some of the smaller banks to raise interest rates independently of the RBA is encouraging borrowers to consider refinancing with a non-bank lender, says One Big Switch founder Lachlan Harris.
Harris tells Property Observer there had been a “really, really strong reaction” to the rate rises, with borrowers “genuinely interested in smaller banks and non-bank lenders”.
“A few months ago it was all about the major banks, now the reaction is they want alternative lenders,” he says.
An ongoing poll by Property Observer has found that nearly 83% of borrowers are interested in the option of refinancing their mortgage with a different lender.
One Big Switch is currently in discussion with several other non-bank lenders, which are keen to join the campaign. One Big Switch encourages mortgage holders to consider refinancing.
To date Resimac, FirstMac, Mortgage Ezy, Mortgage Point and IMB Building Society have all participated in the program. About 1,600 out of the 40,000 borrowers who signed up have refinanced through one of these lenders. Harris says the campaign will not be relaunched but those who signed up and who have not refinanced will be given the opportunity of participating in new lender offers. “We are constantly in discussion with lenders interested in providing group discounts,” he says.
“We are always on the lookout for any lender who will offer a discount.”
Lachlan says the non-bank sector can match offers from the major banks.
“I genuinely believe Australia has a vibrant non-bank lending sector…it’s an incredible part of the market,” he says.
To learn more about refinancing, sign up for the free Property Observer refinancing webinar tomorrow at 12.30.
{module What do you intend to do given the current interest rate fluctuations?}
 
{module Have you changed lenders in the last six years?}
 
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Rate rises encourage borrowers to consider non-bank lenders: One Big Switch’s Lachlan Harris

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New Melbourne median residential lots sizes have fallen fell below 400 square metres for the first time, according to December 2011 quarterly research by Oliver Hume.
The median lot size in the first stage of eight new residential communities’ projects launched during the quarter dropped below 400 square metres to a median of 396 square metres.
Lots less than 400 square metres now comprise 32% of the retail supply compared to around 10% in 2008.
In its recent 2012 interim results, <a target="_blank" href="https://www.propertyobserver.com.au/residential/higher-price-for-less-land-stockland/2012020953317">Stockland reported that it was charging a higher price for smaller property lots in its residential developments.</a>
The eight new communities will comprise more than 10,900 lots when fully developed. There were three new projects each in Casey and Melton, and two in Wyndham.
The eight new projects lifted the total number of projects launched this calendar year to 34, a combined fully developed yield of 24,400 lots, the highest on record both in terms of projects and lots.
The median land price across the eight new projects was $193,000 or $188,000 including incentives. 
The most affordable lot released during the quarter was offered for $138,400 in Melton.
During the December quarter, land prices in Melbourne’s growth areas declined by $3,000 or about 1.4% to $215,000 – the fourth consecutive quarter that prices have declined.
Over the past 12 months, land prices are down 4.8% or $10,000 from their peak of $225,750.
According to Oliver Hume there are currently 3,200 lots available for sale, a five-year high and equal to for five months of supply at current sales rates.
The emergence of smaller lot product is well documented and highlighted in the following graphic:
<img src="/images/stories/oliverhume.gif">
Land supply is now edging close to the industry benchmark of around six months, which was last experienced in the September quarter of 2006.
Casey, Whittlesea and Wyndham dominate supply, with 21%, 20% and 19% market shares respectively.
Mitchell (Beveridge-Wallan), the most recent addition to the six initial metropolitan local government growth areas, is the smallest market, with just under 7% of retail supply.
“Despite recent downward movements during the quarter in the official cash rate, projects sales rates continue their downward spiral – to their lowest levels since 2006,” the report says.
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Melbourne median new lot size falls below 400 square metres: Oliver Hume

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Bendigo &amp; Adelaide Bank has blamed rising funding costs for a 67% slump in net profits for the six months to the end of December 2011.
The bank, which will start charging variable rate borrowers an extra 0.15% in interest from tomorrow – the highest increase of all lenders to date – posted interim profits of $57.9 million, down from $173.9 million in the previous corresponding period.
Bendigo &amp; Adelaide Bank managing director Mike Hirst says the “cost of all funding channels have increased markedly over the past six months, including retail term deposits, senior unsecured and secured debt markets”.
Click to enlarge
<a href="/images/stories/bendigoadelaidec.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/bendigoadelaidethumb.gif"></a>
The net interest margin declined two basis points compared with the previous corresponding period, and fell six basis points when compared to the half year ending June 30, 2011.
“The contraction in margin, coupled with slowing credit growth and market sentiment moving investors away from higher margin wealth and equities products, has resulted in flat earnings,” Hirst says.
Over the past six months the bank has grown its mortgage book by 7.6% compared with the industry average of 7.3%.
Its total loan book stands at $46.8 billion, with 65% of this residential lending. First-home owners make up just under one in 10 mortgage holders.
During the year, the bank acquired the Bank of Cyprus (Australia), which has a loan book of $1.4 billion and 14 branches, eight of which are in Victoria.
Hirst says the economic outlook for the remaining six months of the financial year is difficult, with significant market volatility and revenue challenges facing all banks. Funding costs, changing asset mix and demand for credit are all currently problematic.
"While the future impact of these factors is difficult to predict, there is much about our business that should provide comfort to our investors," Hirst says.
"We continue to generate customer satisfaction and brand advocacy measures that are materially higher than the major banks and we are committed to ensuring we have the capacity to meet the needs of our customers.”
 
 
 
 
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Bendigo & Adelaide Bank profits fall 67% amid higher funding costs

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The directors and part-owners of Burpengary-based real estate agency Lovers of Property are to face court after allegedly paying a salesman just $100 for five months’ work.
It is alleged the salesman was entitled to have been paid wages and annual entitlements of $12,440 for the five months of work he performed. The alleged underpayment has not been rectified.
<img style="float: left; margin: 5px;" src="/images/stories/fraser.jpg">
Company directors and part-owners William Nicholas Fraser and Diana Sylvia Cartwright (pictured at left), both of Morayfield, will face court for alleged sham contracting in a matter being prosecuted by the Fair Work Ombudsman.
A directions hearing is scheduled for Thursday, February 23.
Also facing court will be ICS Real Estate Pty Ltd, a national company involved in contracting sales and marketing workers on behalf of real estate agencies. Lovers of Property allegedly used the services of ICS Real Estate in 2010 to engage a salesman who was in his late 50s and who had no prior experience in the real estate industry.
Click to enlarge
<a href="/images/stories/propertylovers.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/propertyloversthumb.jpg" style="border-style: initial; border-color: initial;"></a>

The Fair Work Ombudsman alleges ICS Real Estate, Fraser and Cartwright were involved in three breaches of workplace laws committed by Lovers of Property, which trades as the Burpengary-based agency Property Lovers.
The maximum potential penalty per breach is $33,000 each for the companies and $6600 each for Fraser and Cartwright.
Lovers of Property allegedly classified the salesman as an independent contractor and paid him on a commission-only basis.
The salesman allegedly performed five months work for just $100, which he received in recognition of his assistance in concluding a sale.
However the Fair Work Ombudsman will allege the salesman’s correct classification was as an employee.
“It is alleged the salesman’s assigned tasks included letterbox drops, door knocking, answering phone calls and offering free property appraisals and that his usual rostered hours were  8.30 am to 5 pm, Monday to Saturday,” says the Fair Work Ombudsman.
“It is alleged the salesman was not required to obtain an Australian Business Number or register his own business and that he believed he was an employee.
“The salesman was allegedly also told he could not work for any other company.
“The salesman was allegedly required to provide his own work laptop, mobile phone and a car of a make and model approved by Lovers of Property as projecting an acceptable image and standard of professionalism.
“It is alleged that after the salesman left work early one day to attend a job interview with another agency and then resigned after securing the job, Fraser told him: ‘That’s fine, I was going to fire you anyway for leaving work without approval’.”
Fair Work inspectors discovered the alleged breaches when they investigated a complaint the salesman lodged after he resigned.
Click to enlarge
<a href="/images/stories/ics.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/icsthumb.jpg" style="border-style: initial; border-color: initial;"></a>
 
Fair Work Ombudsman Nicholas Wilson says a decision to prosecute was made because of the significant amount involved and the seriousness of the alleged breaches.
“Where we suspect sham contracting is occurring, we look behind the often carefully drafted legal documents to determine what the correct classification for workers is under workplace laws,” Wilson says.
The Fair Work Ombudsman is also seeking a court order for Lovers of Property to rectify the alleged underpayment of the salesman.
Among the material posted on the Lovers of Property website includes the offer that “the total cost to sell any home anywhere in QLD from $3,999.00 inc GST”.
It also promises: “We don't just provide cheap commissions we will give you a real estate experience you will remember for the rest of your life.”
 
 
 
 
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Fair Work claims estate agency paid Queensland salesman $100 for five months’ work

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.

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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."

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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.

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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."

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Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

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

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

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

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

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

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