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The number of estate agencies the NSW Office of Fair Trading has investigated for misusing trust account money has doubled in the space of a year, according to research by Property Observer.
During the September 2011 quarter a summary of compliance and enforcement results show there were eight enforcements made against estate agencies for trust account misappropriation or trust account irregularities.
During the September 2010 quarter there were only four enforcements made against estate agencies.
Between these periods, enforcements have been steadily rising, with four issued in the December 2010 quarter, five in the March 2011 quarter and seven issued in the June 2011 quarter.
Figures have not yet been published for the December 2011 quarter.
The figures coincide with a tougher trading environment for real estate agencies.
The latest ABS business entry and exit figures show that survival rates of real estate business are declining.
Only 67.8% of “rental, hiring and real estate services” businesses survived until June 2011 (out of those that were operating at the start of the financial year) compared with a survival rate of 87.8% in 2007.
There also appears to be a rise in the number of Fair Trading investigations into estate agencies over trust account misuse.
In the past seven months Fair Trading has announced investigations into three prominent real estate businesses –<a href="https://www.propertyobserver.com.au/industry-news/missing-%241-million-trust-funds-prompts-fair-trading-investigation-into-warilla-agency-dougmal-harcourts/2012020153210" target="_blank">Dougmal Harcourts </a>(Warilla), <a href="https://www.propertyobserver.com.au/industry-news/lj-hooker-surry-hills-office-relied-on-advances-to-help-cash-flow/2011111052295" target="_blank">LJ Hooker Surry Hills</a> and Belle Property Byron Bay – all relating to allegations of trust account deficiencies.
The <a href="https://www.propertyobserver.com.au/industry-news/lj-hooker-terminates-pymble-franchise-office/2011090151388" target="_blank">LJ Hooker Pymble</a> office has also been the subject to an Office of Fair Trading investigation, the outcome of which is also unknown.
By comparison, Fair Trading did not announce any such investigations for the prior 18-month period dating back to January 2010.
A spokesperson for Fair Trading told Property Observer investigations into these three businesses are ongoing.
In the case of Dougmal Harcourts, more than $1 million is unaccounted for in the agency’s trust account; while $550,000 is missing from Belle Property Byron Bay. The exact amount missing at LJ Hooker Surry Hills has not been disclosed.
Among the monies held in estate agents trust accounts are deposits on sales, residential bonds paid in cash, rents and prepaid advertising.
Monies are lodged in trust accounts in order to be protected. Agents are not allowed to use money in trust accounts for their own purposes.
Interest accrued on trust account monies is used by Fair Trading to make compensation payments to wronged consumers.
“Trust account laws are there and agents need to be aware of them,” NSW Fair Trading Deputy Commissioner Steve Griffin warns in an education video put out by the watchdog.
“They must bank money the next day or if they have bonds they must lodge them with Fair Trading within seven day,” he says.
Agents risk a maximum penalty of 10 years’ imprisonment for breaching trust account laws. The maximum fine is $55,000 as well as the risk of losing their real estate licence and their livelihood.
For 2010-11 most agents must have lodged an audit of their trust account with the director-general by no later than September 30.
Failure to lodge an audit can result in a licensee being disqualified from holding a licence and possibly prevented from renewing their licence.
Under NSW property law, agents are required to hold clients’ funds in a trust account kept at an authorised deposit-taking institution and approved by the director general. They must also notify the lender that it is a trust account required under the Property, Stock and Business Agents Act 2002.
Fair Trading says it has not noticed any increasing trend or spike in real estate office investigations.
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lschlesinger-FZcF9M3vE6

More agents putting their hands in the cookie jar as businesses struggle

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Nearly half (46%) of Australians living out of the country have invested their earnings in property back home, according to the fourth annual HSBC Expat Explorer survey. 
In addition, 32% of expats living in Australia have also invested in Australian real estate despite Australia ranking 20th out of 31 on the survey’s league table of levels of disposable income. 
According to this measure of the survey, expats working in oil-rich Saudi Arabia, Russia and Qatar earn the highest levels of disposable income. 
The closest destination for Australian expats offering high levels of disposable income is Singapore, an eight-hour flight from Sydney, which ranked sixth out of 31 countries. 
Expat income: Where to save for your Australian property investment while working abroad? 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="111">
Disposable income rank
</td>
<td valign="top" width="161">
Country
</td>
</tr>
<tr>
<td valign="top" width="111">
1
</td>
<td valign="top" width="161">
Saudi Arabia
</td>
</tr>
<tr>
<td valign="top" width="111">
2
</td>
<td valign="top" width="161">
Russia
</td>
</tr>
<tr>
<td valign="top" width="111">
3
</td>
<td valign="top" width="161">
Qatar
</td>
</tr>
<tr>
<td valign="top" width="111">
4
</td>
<td valign="top" width="161">
Egypt
</td>
</tr>
<tr>
<td valign="top" width="111">
5
</td>
<td valign="top" width="161">
Bahrain
</td>
</tr>
<tr>
<td valign="top" width="111">
6
</td>
<td valign="top" width="161">
Singapore
</td>
</tr>
<tr>
<td valign="top" width="111">
6
</td>
<td valign="top" width="161">
Thailand
</td>
</tr>
<tr>
<td valign="top" width="111">
8
</td>
<td valign="top" width="161">
Vietnam
</td>
</tr>
<tr>
<td valign="top" width="111">
9
</td>
<td valign="top" width="161">
United Arab Emirates
</td>
</tr>
<tr>
<td valign="top" width="111">
9
</td>
<td valign="top" width="161">
Switzerland
</td>
</tr>
<tr>
<td valign="top" width="111">
17
</td>
<td valign="top" width="161">
US
</td>
</tr>
<tr>
<td valign="top" width="111">
20
</td>
<td valign="top" width="161">
Australia
</td>
</tr>
<tr>
<td valign="top" width="111">
20
</td>
<td valign="top" width="161">
Canada
</td>
</tr>
<tr>
<td valign="top" width="111">
24
</td>
<td valign="top" width="161">
UK
</td>
</tr>
</tbody></table>
Source: HSBC Expat Explorer survey 
The survey found that more than one third (35%) of Australian expatriates are earning more than US$201,000, compared with just 25% of expats of any nationality. 
In addition, 74% of Australian expats overseas report a higher disposable income now that they are overseas (compared with 70% overall). 
Graham Heunis, head of retail banking and wealth management for HSBC in Australia, says the Australian pursuit of “wealth through property has clearly not been lost on Aussies overseas, with expats living in Australia also competing for property in the local market here”. 
The survey found that half of Australian expatriates make their own investment decisions, with more than half of these relying on family and friends for financial advice. Less than half (48%) have a financial advisor, 44% use their bank and 39% rely on the media. 
Heunis says Australian expats appear to be “downturn defiant”. 
“Despite the global and social volatility going on in parts of the world at the moment, Australian expats appear to be financially resilient with higher disposable incomes compared to back in Australia.” 
Expats living in oil-rich Saudi Arabia are the wealthiest and have the highest levels of disposable income, according to the survey. 
Overall, nearly three-quarters (71%) of the 3,385 expats surveyed from more than 100 countries reported earning more since relocating to a new country. 
About 15% of Australian expats are actively looking or at least thinking about a move back to Australia, slightly higher than the global average of 14%. 
One-third (33%) of Australian expatriates overseas noted a deterioration in the political or wider social situation in their host country.
 
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Downturn-defiant expats putting their $201,000-plus earnings into Australian property: HSBC

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Nearby mining activity, solid infrastructure, an airport and country living are some of the reasons the NSW country town of Orange is turning into a veritable river of residential property gold.
Orange, about 260 kilometres north west of Sydney, recorded 921 property sales over the course of 2011 worth $270 million, ranking 54th on <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’s list of the top 100 suburbs with the highest aggregate of sales in 2011</a>. Orange ranked at number 144 in 2010.
The vast majority (781) of these sales were houses, with the median price of an Orange house now standing at $296,000. The median unit price is $217,000.
House prices in Orange have been booming, with the town experiencing about 4% house price growth for the year to September 2011, according to the latest ANZ Housing report, the strongest capital growth of all NSW regional areas.
According to RP Data, houses are selling at an average discount of 6.1%, with an average time on market of 110 days. However, RP Data says house prices remained flat over 2011, having experienced strong growth over the two preceding years.
Orange has also attracted its fair share of those seeking a lifestyle change and also taking advantage of the <a href="https://www.propertyobserver.com.au/residential/no-rush-yet-for-sydneysiders-to-move-to-the-sticks-despite-%247000-government-carrot/2011101151892" target="_blank">NSW government’s regional relocation grant</a>, which provides a one-off payment of $7,000 to assist home buyers with the cost of relocating from their metropolitan home to a regional home.
About 600 Sydneysiders relocated to Orange, according to James Treloar, former Tamworth mayor and spokesman for Evocities, a campaign comprising the cities of Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga aimed at encouraging capital city residents to move to and invest in one of these regional cities.
<img src="/images/stories/orangechart.gif">
Source: ANZ
Orange is one of the regional economies that is benefiting from mining activity, according to the February property market report from valuers Herron Todd White.
According to the valuation firm, the shortage of available rental property is so severe that motel occupancies are running at a 90%  – an extremely high number for a regional town.
“Orange is experiencing a rental housing shortage, with motel occupancies running at around 90%,” HTW says.
The boom in house sales and values in Orange is being partly driven by a number of nearby mining projects under construction.
“Construction of the Cadia East Gold Mine is nearing completion and will become the largest underground mine in Australia, at a cost of approximately $1.9 billion.
“The expansion will prolong mining in the valley for the next 30 years,” says Herron Todd White.
Construction of the mine will finish around April 2012, when an estimated 1,000 contract workers will be stood down.
“This should result in more normal market conditions with a permanent mine workforce of around 750 to 800 people. What impact the mine will have remains to unclear,” says Herron Todd White.
A November report by PRDnationwide noted that the Orange municipality was one of the strongest-performing NSW rental markets, with the mining activity in the Cadis Valley “responsible for much of the growth in rental prices”. 
“While the median rent price for a three bedroom house in the region increased 15.8%, rent for two-bedroom units rose 18.8% in the 12 months to September 2011 resulting in a median weekly rent of $238,” says PRDnationwide.
 
<img src="/images/stories/orangechart2.gif">
<img src="/images/stories/orangechart3.gif">
Orange is one of the hotspot picks of <a href="https://www.propertyobserver.com.au/new-south-wales/nsw-city-of-orange-offers-opportunities-for-investors/2011121952894">Sam Saggers from Positive Real Estate</a>.
He describes Orange as one of the new “boom” mining towns and recommends investors look at properties under $300,000.
He says the market is offering both high capital return and high capital growth – “that anomaly does not align itself all that often, so you have a great opportunity for both in Orange”.
In addition to the benefit of mining activity, Orange is also one of those regional markets with good infrastructure and transport connections to major capital cities.
Raine and Horne CEO Angus Raine says baby boomers will look to buy in towns like Orange (as well as Tamworth and Port Macquarie), because they have “airports that make it easier for friends and families to visit”.
Orange is one of Raine’s “breakout” markets to watch in 2012 because of its standing as a “transport hub town”.
Orange also has one of Australia’s best wine districts, with local wines regularly winning national and international awards and is considered a regional gourmet food capital.
In addition, Orange is home to Schools of Agriculture and Health of Charles Sturt University.
Peter Fisher from the Property Shop Orange is selling a three-bedroom house in Emily Place for $279,000, listed just before Christmas.
<img src="/images/stories/orangehouse.jpg">
He describes the property (pictured above) as a “great starter home or investment”. It is currently being rented at $330 per week, equating to a yield of 6.15% at the current asking price.
It last sold for $199,000 in June 2003.
However, investors should exercise a fair amount of caution in Orange.
Orange, along with Dubbo and Broken Hill in the state's far west, were some of the regional centres hard hit by foreclosures, according to Supreme Court writ figures released in January.
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Hotspot: Mining and transport links make Orange a sweet prospect for investors

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Victorian borrowers appear to be growing increasingly unhappy with their mortgage lenders, with borrowers in the state accounting for more than a quarter (28%) of all refinancing activity in Australia during the final three months of 2011, according to the latest data from ABS. 
In total over 14,100 Victorian borrowers refinanced their mortgages over this three-month period (totalling $3.6 billion), compared with 13,000 in the corresponding quarter in 2010 and 10,500 in last quarter of 2009. 
The surge in Victorian refinancing activity comes as part of a national increase in refinancing activity over this period, which soared to a record high of $12.6 billion (50,000 borrowers) in the final quarter of 2011, a 14% increase on $11.1 billion refinanced in the December quarter of 2010. 
There were also sharp increases in refinancing activity in NSW (up $4.3 billion from $3.7 billion) and Western Australia ($1.6 billion from $1.3 billion). 
A poll carried out by Property Observer found that 81% of borrowers will investigate the option of refinancing with a different lender following the recent interest rate increases made independently of the RBA. 
More than half (56%) of those polled said they’d changed lenders in the last six years.
Owner-occupier refinancing
 
<img src="/images/stories/refinance.gif">
Refinancing activity remained flat or fell in all the other states. 
On a seasonally adjusted basis refinancing rose by 2.3% in December 2011 after a fall of 0.9% in November 2011. 
The increase in refinancing activity comes as mortgage lending to owner-occupiers increased by just 0.7% in December 2011 with overall mortgage growth at its lowest level since statistics were recorded 35 years ago.
To learn more about refinancing, <a target="_blank" href="/news">sign up for our free webinar</a>. The webinar will take place on Wednesday, February 22 at 12.30pm.
 
{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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Disgruntled Victorian borrowers lead national surge in mortgage refinancing: ABS

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The Perth vacancy rate tightened from 2.8% in December 2011 to 2.3% in January with median house rents rising from $400 to $420, according to preliminary data from the Real Estate Institute of Western Australia (REIWA). 
Median rents for Perth units remain unchanged at $380 per week. 
Despite this tightening, REIWA president David Airey says any talk of a rental crisis in Perth is exaggerated. 
“The percentage of metropolitan rental properties available for lease was unchanged over the three-month period as a whole but did fluctuate a little for each calendar month. 
“We did see the vacancy rate in December lift a bit to 2.8%, but this has subsequently fallen to 2.3% for the month of January. 
Airey says it is possible the vacancy rate might tighten further during this quarter, “but the situation is nothing like the March quarter of 2007, which saw the vacancy rate plummet to just 0.8%. 
“The more notable feature is an 18% fall in the number of properties available for lease from 2,800 at the end of December to 2,300 in mid-February,” he says. 
Across the state, the vacancy rate for the three months to January stands at 2.5%, unchanged from the revised December 2011 quarterly rate, according to preliminary data.
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Perth vacancies tighten to 2.3% but no rental crisis looming: REIWA

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Online bank ING Direct will raise rates on its variable mortgages by 0.1% on Friday. 
Rates on its Mortgage Simplifier (the bank’s standard variable loan) will rise to 6.72% on Friday 17 January. 
The Australian arm of the Dutch-based bank is the fifth biggest lender in Australia, with a $38 billion mortgage book. 
Westpac brands St George, Bank of Melbourne and BankSA have also announced that they will raise interest rates on variable mortgages. 
St George and BankSA will lift rates by 0.12% to 7.42% on Friday (a greater increase than Westpac), while Bank of Melbourne has lifted its rates by 0.1% to 7.4% effective immediately. 
 
6.72%
The standard variable bank rate that CUA is currently charging its customers (rates have been left unchanged) and the rate that ING Direct will charge variable rate customers from Friday 17 January following a 0.1% increase.
6.90%
The standard variable bank rate that the Greater Building Society will charge new customers from February 15 after raising rates by 0.1%. The rate rise for existing customers kicks in on February 22
6.94%
The standard variable bank rate that Heritage Bank is currently charging its customers.
7.20%
The standard variable bank rate that BankWest is currently charging its customers.
7.22%
The standard variable bank rate that ING Direct is currently charging its customers
7.24%
The standard variable bank rate that HSBC is currently charging its customers.
7.31%
The standard variable rate that NAB will charge its customers from February 20 after lifting rates by 0.09%.
7.33%
The standard variable bank rate that Suncorp is currently charging its customers.
7.36%
The new standard variable bank rate ANZ will charge its customers from February 17 after lifting rates by 0.06%.
7.36%
The standard variable bank rate Bank of Queensland will charge its customers until at least the next RBA meeting on March 6, the bank has pledged.
7.40%
The standard variable bank rate that Bank of Melbourne is currently charging its customers after raising rates on February 15 by 0.1%
7.41%
The new standard variable bank rate the Commonwealth Bank will charge its customers from February 20 after lifting rates by 0.1%.
7.42%
The standard variable bank rate that St.George and BankSA will charge its customers from February 20 after raising rates by 0.12%
7.45%
The new standard variable bank rate Bendigo and Adelaide Bank will charge its customers from February 21 after lifting rates by 0.15%.
7.46%
The new standard variable bank rate Westpac will charge its customers from February 20 after lifting rates by 0.1%.
*All rates as announced on February 15.
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ING Direct and Westpac subsidiaries St George, Bank of Melbourne and BankSA push up variable rates 

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Two days after pushing up interest rates independently of the RBA, the Commonwealth Bank has reported a 19% increase in net profit for the half-year ended December 31, 2011 to $3.6 billion.
Predictably, following its raise rise announcement on Monday, the bank reported on “margin pressure from higher wholesale funding and competition, with a 10-basis-point drop in net interest margins to 2.15%”.
CEO Ian Narev highlighted these increased funding costs in two slides in his presentation:
<img src="/images/stories/cbafeb151.gif">
<img src="/images/stories/cbafeb152.gif">
Commenting on the result, Narev said the bank continued to meet the needs of its 13 million customers as well as “maintain the standard of living” of 800,000 Australians who directly own shares or have money invested in the bank’s super funds and other investment vehicles.
“With the outlook for the global economy remaining unpredictable, the group plans to retain its existing conservative business settings. We welcome some positive signs of economic recovery but recognise that in times of uncertainty, banks must remain cautious.
“The fundamentals of the Australian economy remain strong and we have great confidence in the prospects for this economy.  However, in the absence of sustained recovery in offshore economies, particularly Europe, businesses and consumers will remain cautious, and the current trend of weak credit growth, asset allocation towards cash, and volatile markets will continue in Australia. Until we see clear signs of that sustained recovery, average funding costs will continue to rise,” he says.
Narev says the bank has no plans to send jobs offshore and no plans for a major redundancy program.
 
 
 
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CBA announces interim profits of $3.6 billion but highlights drop in loan profit margins

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Successful negotiations of a fresh lease agreement would allow Dexus to achieve its target of leasing more than 80% of its 1 Bligh Street, Sydney office building by June 2012, the property group has revealed in interim results.
Dexus says 1 Bligh Street is currently 68% leased by area, with law firm Clayton Utz and the Commonwealth Government the major tenants.
Dexus says it is currently in exclusive negotiations for a further four floors of the <a target="_blank" href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875">six-green-star premium office building</a>, which would take occupancy in the building to 82%.
In November it was reported that business information provider <a target="_blank" href="https://www.propertyobserver.com.au/office/bloomberg-considering-move-to-sydney-s-1-bligh-street/2011112452537">Bloomberg was considering</a> moving into the flagship office tower.
The property group announced net profit attributable to stapled security holders after tax of $145.7 million for the six months ended December 31, 2011
Dexus chief executive Victor Hoog Antink says the results are in line with guidance and underpinned by like-for-like net operating income growth of 2.4%.
“Our focus on leasing has seen us already secure more than 99% of 2012 financial year rental revenue,” he says.
Dexus secured lease renewals over 19,572 square metres in the half-year period, 91% of which were leases expiring in future periods. During the period 6,712 square metres of new leases were signed.
In October, <a href="https://www.propertyobserver.com.au/office/dexus-will-take-four-years-to-lease-1-bligh-street-merrill-lynch-analyst/2011101951988" target="_blank">Merrill Lynch analyst Simon Garing forecast</a> it would take at least four years to fully lease 1 Bligh Street.
The building at 1 Bligh Street has won numerous architectural, design and sustainability awards since being completed earlier this year.
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Dexus yet to meet leasing target at 1 Bligh Street 

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Westfield Sydney on Pitt Street Mall in the Sydney CBD achieved the highest specialty sales productivity in Westfield’s global portfolio, according to the group’s 2011 annual results.
The flagship store achieved speciality annual sales of more than $16,000 per square metre, with the next best performer being the Chermside Mall in Brisbane, which achieved speciality sales of $13,700 per square metre. The Chermside Mall is also Westfield’s biggest mall with 146,000 square metres of space.
Westfield Sydney, which has 257 stores and a gross lettable area of 78,000 square metres, is valued at just under $1 billion (up $944 million from $942 million) in the annual report while the adjacent Sydney Central Plaza, also on Pitt Street, is valued at $299 million, up from $287 million.
Westfield Bondi Junction in Sydney’s eastern suburbs, which achieved retail sales of $973 million or $12,400 per square metre, remains the most valuable in the Australian portfolio valued at $1.05 billion
Bondi Junction rents sit at about $1,200 per square metre.
The annual report does not provide annual sales figures for Westfield Sydney but co-CEO Steven Lowy says David Jones in Westfield Sydney and Myer in Sydney Central Plaza achieved sales of $1.1 billion for the year.
He describes the store as an “immediate success” that was “changing the face of retailing in the Sydney CBD with its combination of global and local high street retailers and high-quality dining”.
Lowy says rents at Westfield Sydney averaged $1,500 per square metre, the highest for a project of this scale and higher than in Westfield London and <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">Westfield Stratford </a>– its newest stores in the UK.
As a standalone store Sydney Central Plaza achieved annual sales of $357 million, with speciality annual sales of $16,000 per square metre.
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Westfield Sydney ‘changing the face of retailing’, but Bondi Junction the most valuable: Steven Lowy

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Shopping centre group Westfield Group has reported net profits of $1.53 billion on the back of strong speciality store sales, a record volume of leasing activity and growth in property income.
The 2011 result to December 31, 2011 was driven by net property income increasing 7% during the year to $2.06 billion, a 100% increase in the group’s property management income to $114 million and a 92% increase in project income.
Net profits were up 37% on 2010 profits of $1.12 billion. 
Property income in local currency terms was up 8% in Australian and New Zealand stores, up 1% in the United States and up 36% in the United Kingdom.
In Australia, comparable specialty retail sales for the 12 months were up 1.5% and up 1.9% in New Zealand, with the strongest performance in both Australia and New Zealand being in the December quarter – up 2% and 4.8% respectively on the September 2011 quarter.
Australian retail outlets account for nearly half of the 24,000 outlets in the group’s 118 outlets, according to the 2011 annual results.
Co-chief executive Steven Lowy says there was good demand for space, particurlarly in the December quarter, the strongest for the group in two years, with 3,000 leasing deals signed.
The Australian / New Zealand portfolio was more than 99.5% leased at December 31, 2011, with the United States portfolio at 93.1% and the United Kingdom at 99%.
Across all regions, Westfield shopping centres are 97.5% leased.
Lowy says there was “solid growth” in average rents by 3.5%.
In the United States, comparable specialty retail sales for the 12 months to December 2011 were up 7.1%, with sales in the December quarter up 9.8%.
At Westfield London, sales for the year were over £960 million, up 10.8% year on year.
“Particularly pleasing was the record volume of leasing activity during the year, with over 5,100 leases agreed covering over 960,000 square metres of retail space. This highlights the retailer demand for our high quality portfolio globally,” write co-CEOs Peter and Steven Lowy. 
Peter and Steven Lowy say the result was at the upper end of Westfield’s earnings forecast range after absorbing a 12% appreciation in the Australian dollar to the US dollar and an 8% appreciation to the UK pound over the year.
Currently, the group has $2.4 billion worth of projects under construction, with Westfield’s share being $1.3 billion. This includes <a href="https://www.propertyobserver.com.au/retail/westfield-stratford-city-what-the-million-saw/2011110852259" target="_blank">Stratford City</a>, in east London, which opened during the year and is <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">the largest urban shopping centre in Europe</a> and adjacent to the London 2012 Olympic venue.
The centre has had 13.6 million shopping visits in its first 14 weeks from opening to December 31, 2011.
During the year, Westfield commenced work on $760 million worth of new projects, including Fountain Gate in Australia and UTC in San Diego.
 
 
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Westfield profits up 37%, with solid rental growth

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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[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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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.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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