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The decision by the RBA to leave rates on hold today will have a “benign” effect on the property market, according to Monique Sasson Wakelin, managing director of Wakelin Property Advisory. 
Her response is in strong contrast to the<a target="_blank" href="https://www.propertyobserver.com.au/economy/residential-building-to-suffer-from-rba-s-decision-to-leave-rates-unchanged-industry-bodies/2012020753282"> gloomy reaction from others in the property and mortgage industries</a>. 
Wakelin says the decision to keep rates unchanged sends a “positive message about the health of the Australian economy”. 
“The RBA is satisfied that the economy is robust by world standards and not requiring additional stimulation. The evidence of this is low and stable unemployment, inflation sitting comfortably within its desired range of 2% to 3% and the economy growing close to trend. 
“It is also clear that the RBA does not wish to stimulate a disproportionate increase in house prices, demand and finance that could ultimately lead to undesirable inflationary pressure and a yo-yo effect on prices and demand in the property sector,” she says.
 In keeping rates on hold at 4.25% Sasson Wakelin says the RBA has been “prudent in balancing up international and domestic conditions”.
“With a stable domestic economy and conditions abroad that are at least not getting worse, the RBA has adopted a wait and see approach.” 
“This stance provides the Reserve Bank more firepower to cut rates further should the eurozone debt crisis deteriorate or the nascent <country-region><place>US</place></country-region> recovery peter out over 2012. 
“On balance, we welcome the decision and believe the short- and medium-term impact of the announcement are benign,” she says.
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Effect of rate hold will be ‘benign’: Monique Sasson Wakelin

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The Reserve Bank has come under heavy fire from the building industry and mortgage brokers for not cutting rates for third successive time at its February meeting today.
The two peak residential construction bodies, Master Builders Australia (MBA) and the Housing Industry Association (HIA), expressed disappointment at the decision and warned of its impact on the building industry and home-buying appetites. 
“Master Builders was disappointed that rates were not cut given the current poor conditions in the building industry,” says Wilhelm Harnisch, chief executive of MBA, following the decision. 
“Monetary policy needs to be more supportive to underpin activity in a building industry clearly stuck in the slow lane of the economy.” 
He pointed to the MBA’s December quarter national survey, which showed the building sector was struggling having lost the “cushioning effect of government stimulus programs”. 
“Sales and forward orders have fallen away dramatically as cautious clients, overseas events and difficulties accessing finance work against any upturn,” says Harnisch. 
“Lower interest rates are needed to restore confidence in the building industry and drive a private sector recovery in the housing and commercial building markets.” 
Harnisch says the building industry “was banking on a further rate cut to help boost confidence to stabilise an increasingly uncertain market”. 
“The Reserve Bank needs to reconsider its strategy and cut rates further to assist in driving a sustainable recovery in the building industry.” 
The HIA described the RBA’s decision as a missed opportunity to “bolster business and household confidence”. 
“A rate cut today would have been appropriate for current economic conditions, but sadly that decision was not taken,” says HIA chief economist Dr Harley Dale. 
“The global and domestic economic outlook remains clouded, within which new housing activity in <country-region><place>Australia</place></country-region> faces the risk of revisiting GFC lows.” 
Dale notes the widespread expectation for a cut and an increasingly aggressive debate regarding what <country-region><place>Australia</place></country-region>’s banks would and should do with a cut prior to the announcement. 
“Against this backdrop, leaving rates unchanged has the potential to weigh down on confidence and non-resource economic activity,” he says. 
“Borrowers seeking relief from the uncertain economic climate and cost of living increases will be disappointed the Reserve Bank of <country-region><place>Australia</place></country-region> has resisted the chance to lower official interest rates,” says mortgage broker Loan Market, part of the Ray White Group. 
Loan Market spokesman Paul Smith says most consumers had been expecting the RBA to reduce the cash rate again after cuts in November and December last year. 
Smith says a recent Loan Market consumer survey found the majority of respondents had been anticipating more reductions to the cash rate. 
He says the RBA likely held off reducing rates due to considerable mixed economic signals in the market <a target="_blank" href="https://www.propertyobserver.com.au/economy/inflation-data-should-encourage-rba-to-cut-rates-again-in-february/2012012953143">such as a mid-range target inflation rate of 2.4%</a>. 
“We thought the RBA could have applied a 50 basis points cut this month but they have taken a more cautious approach and still have plenty of room to move,” he says. 
“While the fundamentals of the Australian economy remain quite strong and consumer sentiment has been improving, sections of the economy can only benefit from the stimulus provided by lower interest rates.” 
Mortgage broker network 1300 Home Loan slammed the RBA’s decision and called it a “serious mistake”. 
According to managing director John Kolenda, there were so many downside risks in the economy that what was needed was a series of rate cuts, not for the RBA to sit on its hands with a hold decision. 
“With the banks’ costs of funding rising all the time and most sectors of the economy remaining weak, we need to see some real relief passed on to home owners,” he said. 
“This hold decision is a missed opportunity which the RBA will live to regret if the situation in <place>Europe</place> continues to deteriorate while consumer confidence here remains as weak as we have seen in recent months.”
 
 
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Residential building to suffer from RBA's decision to leave rates unchanged: housing industry bodies

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Some signs of improvement in global economic conditions, particularly in the US and Europe, expectations of the Australian economy to grow at trend and some signs of a stabilising housing market are some of the reasons the RBA has given for leaving the cash rate on hold today at 4.25%.
The full Monetary Policy Statement by RBA governor Glenn Stevens: 
“Information becoming available since the December meeting confirms that economic conditions in <place>Europe</place> were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend pace. That said, recent data from the <country-region><place>United States</place></country-region> suggest a continuing moderate expansion after a soft patch in mid 2011. Growth in <country-region><place>China</place></country-region> has moderated as was intended, but on most indicators remained quite robust through the second half of last year. Conditions around other parts of <place>Asia</place> have softened. Commodity prices declined for some months to be noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels. 
“The acute financial pressures on banks in <place>Europe</place> were alleviated considerably late in 2011 by the actions of policymakers. Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made. Financial market sentiment, though remaining skittish, has generally improved since early December. Share markets have risen and term funding markets have reopened, including for Australian banks, albeit at increased cost compared with the situation prevailing in mid 2011. 
“Information on the Australian economy continues to suggest growth close to trend, with differences between sectors. Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year, though it has been steady over recent months. CPI inflation has declined as expected, as the large rises in food prices resulting from the floods a year ago have been unwinding. Year-ended CPI inflation will fall further over the next quarter or two. In underlying terms, inflation is around 2½%. Over the coming one to two years, and abstracting from the effects of the carbon price, the Bank expects inflation to be in the 2% to 3% range. 
“Credit growth remains modest, though there has been a slight increase in demand for credit by businesses. Housing prices showed some sign of stabilising at the end of 2011, after having declined for most of the year. The exchange rate has risen further, even though the terms of trade have started to decline. This is largely a reflection of a decline in the euro against all currencies. Nonetheless, the Australian dollar in trade-weighted terms is somewhat higher than the bank had previously assumed. 
“At today's meeting, the board noted that interest rates for borrowers have declined to be close to their medium-term average, as a result of the actions at the board's previous two meetings. With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy was appropriate for the moment. Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy. The board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation.”
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Better global outlook, steady local economic growth and stabilising housing market help keep rates on hold: RBA  

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The Reserve Bank has surprised and disappointed home loan borrowers by leaving the cash rate unchanged at 4.25%.
The Australian Dollar reacted immediately rising to above $1.08 having opened at under $1.07. It has fallen back slightly since then trading around $1.078.
A 0.25% rate cut would have reduced mortgage repayments by around $50 per month for those with a $300,000 mortgage, though lenders were not expected to pass on the full rate cut.
NAB currently has the lowest standard variable rate mortgage at 7.22%.
ANZ offers a standard variable rate of 7.30% followed by CBA (7.31%) and Westpac (7.36%).
ANZ will make an independent announcement about interest rates on Friday.
The three-day wait for ANZ mortgage holders in February and March is due to the quirks of the calendar month (the RBA meets on the first Tuesday of each calendar month to make its interest rate call) – ANZ borrowers will have to wait 10 days from April onwards.
Bendigo and Adelaide Bank has also indicated that it plans to follow ANZ and move out of step with the RBA, with chief executive Mike Hirst reiterating the point that the official cash rate no longer strongly correlates with banks’ cost of funds.
Prior to the RBA announcement the major banks indicated they were unlikely to pass on the full rate cut putting out statements about increased funding costs. 
The decision to leave rates on hold comes as the mining sector booms but others like residential construction and retail continue to struggle. 
According to the Australian Industry Group Australian Performance of Construction Index, construction activity contracting for the 20th consecutive month in January led by a slowdown in the building of apartments and commercial buildings. 
A rate cut was expected to deliver a boost to housing construction, where the pace of decline eased following the November and December rate cuts. Engineering construction with its strong ties to the resources boom remained the best performing construction sector. 
Retail sales declined 0.1% in December according to ABS figures, below consensus with Westpac expecting 0.2% gain over December.
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RBA leaves rates on hold and dollar rises

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<city><place>Sydney</place></city> registered the biggest monthly decline in property listings in January, with peak summer stock levels falling 15.9% from 34,000 to 29,000, according the latest figures compiled by SQM Research. 
All cities experienced the typically expected monthly drop in sales stock, with <city><place>Adelaide</place></city> experiencing the most marginal decline, falling by 0.3% month-on-month. 
Nationally property listings fell by 4.3% to just below 369,000, with SQM managing director Louis Christopher telling Property Observer the market volumes have most likely peaked. 
For the year to January listing are up 13.5% led by a 33.3% increase in <city><place>Melbourne</place></city> listings.
Christopher says seasonality is the biggest factor in the January decrease, though the drop was bigger than expected.
<img src="/images/stories/sqmfeb7.gif">
Source: SQM Research
“It does convince one that stock levels have peaked,” Christopher says.
“At the start of 2009, buyers quickly took out the low-hanging fruit – the same thing is happening now,” he says.
Christopher says February data will be crucial.
“If there is no pick-up in listings or a just a marginal increase, then it will indicate that something cyclical is happening.
“Then it will be clear to us there is something else is going on in the market, such as listings being absorbed by an increase in buyer activity,” he says.
Christopher says <city><place>Sydney</place></city> vendors are mos likely withdrawing their listings and preparing fresh marketing campaigns ahead of the February pick-up.
Christopher says not much should be read into the 8.3% month-on-month drop in <city><place>Melbourne</place></city> listings given how much they are up year-on-year.
According to SQM, <city><place>Hobart</place></city> recorded the largest yearly increase, climbing 40.9% since the corresponding period of the previous year (January 2011) and coming to a total of 4,558. 
<city><place>Darwin</place></city> recorded the largest yearly decrease, falling by 11.7% since the corresponding period of the previous year (January 2011) and coming to a total of 1,331. 
 
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Sydney leads national decline in stock on market in January: SQM

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The inner-western <city>Sydney</city> suburb of Marrickville, described by John McGrath in 2010 as the “new Paddington”, has been picked as one of four <city><place>Sydney</place></city> housing hotspots for 2012 by property group PRDnationwide.
''It feels like Paddington in the 1970s. Buy here and double your money in the next six years,'' McGrath famously said two years ago. The multi-cultural suburb, which has strong ties to the Greek and Vietnamese community, is 7 kilometres west of the Sydney CBD.
It ranked as the ninth most affordable suburb within 10 kilometres of the Sydney CBD, according to RP Data, which recorded 234 sales during 2011 and a median sales price of $751,000. PRDnationwide puts the median house price at $755,000.
“Located in close proximity to the suburbs of Enmore and Newtown, Marrickville has seen a solid increase in the median house price over recent times, with a five-year average growth of 7.2% per annum,” says Oded Reuveni Etzioni, PRDnationwide’s NSW research analyst, who picked this year’s list of top-performing suburbs.
“The expansion of the Marrickville Metro shopping centre, currently under council assessment, is likely to further increase the desirability of the suburb,” he says.
PRDnationwide’s other <city><place>Sydney</place></city> housing hotspots are Redfern, Naremburn and Ryde. 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="154">
 
</td>
<td valign="top" width="154">
Location
</td>
<td valign="top" width="154">
Distance from CBD
</td>
<td valign="top" width="154">
Median house price
</td>
</tr>
<tr>
<td valign="top" width="154">
Marrickville
</td>
<td valign="top" width="154">
Inner West
</td>
<td valign="top" width="154">
7 kilometres
</td>
<td valign="top" width="154">
$755,000
</td>
</tr>
<tr>
<td valign="top" width="154">
Redfern
</td>
<td valign="top" width="154">
Inner South
</td>
<td valign="top" width="154">
2 kilometres
</td>
<td valign="top" width="154">
$780,000
</td>
</tr>
<tr>
<td valign="top" width="154">
Ryde
</td>
<td valign="top" width="154">
West
</td>
<td valign="top" width="154">
12 kilometres
</td>
<td valign="top" width="154">
$843,500
</td>
</tr>
<tr>
<td valign="top" width="154">
Naremburn
</td>
<td valign="top" width="154">
<place><placename>Lower</placename><placename>North</placename><placetype>Shore</placetype></place>
</td>
<td valign="top" width="154">
6 kilometres
</td>
<td valign="top" width="154">
$1,275,000
</td>
</tr>
</tbody></table>
Source PRD Nationwide
 
“Redfern’s location on the fringe of the Sydney CBD allows residents an easy commute to shopping and cultural facilities,” says Reuveni Etzioni.
“Benefiting from urban renewal projects and a location close to main arterial road and rail infrastructure, the suburb exhibits strong long-term growth despite a drop in median price in the 12 months to September 2011,” he says.
Similarly, Ryde is strategically well placed, located on the intersections of Victoria and Lane Cove roads and close to the employment hubs of Meadowbank and <place><placename>Macquarie</placename><placetype>Park</placetype></place>.
“New development in Meadowbank will see more residential apartments being built on old industrial land and the Ryde town centre redevelopment is set to increase the amenity of area,” Reuveni Etzioni says.
Naremburn, where prices increased by 13.5% between December 2009 and 2010 but were softer in 2011, gets the nod because it is “strategically positioned to benefit from the development of the Gore Hill mixed-use business precinct, which upon completion will become a large regional employment hub”.
It will also benefit from the expansion of the <place><placename>Royal</placename><placename>North</placename><placetype>Shore</placetype></place> hospital, which will is likely to bring more medical professionals to the area.
According to Reuveni Etzioni, demand will increase in 2012 for well-located properties in the inner and middle ring of <city><place>Sydney</place></city>. 
“During times of uncertainty buyers return to the fundamentals of dwellings close to the CBD, with locations that are supported by a good public transport infrastructure,” he says. 
Units rather than houses will again be the dwelling of choice in these locations, he says, as more new developments are completed over the next 12 months. 
Other factors that motivated his selection of suburban hotspots include population growth, which drives increasing demand for properties and generally puts upward pressure on property prices; infrastructure and investment “to support current and future population increases and development of amenities”; and “employment opportunities and diversity, which includes proximity to employment nodes or potential job growth”. 
 
 
 
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Marrickville ranks alongside Redfern, Naremburn and Ryde as PRDnationwide’s 2012 housing hotspots

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AMP Capital plans to reopen to investors the $760 million Wholesale Australian Property Fund, one of the many property and mortgage funds that have remained frozen following the GFC.
The fund manager took over as responsible entity of the retail property fund in November last year from previous manager AXA Australia.
AXA Australia froze the fund in November 2008.
AMP Capital has agreed to a planned asset sales program to increase liquidity in the fund.
Its most valuable asset is the Casula Mall Shopping Centre in the outer south west of <city><place>Sydney</place></city>, valued at $112 million, and the Bond Store One parking garage in The Rocks, valued at $72 million.
AMP Capital head of property funds management Chris Judd says the fund has delivered an average return of 9.25% over 27 years.
“We are excited we are in a position to re-open the fund,” he says.
“Property fundamentals remain steady and as we have seen before, direct property as an asset class performs well during uncertain economic times.”
“The fund will retain a strong income focus and low risk orientation. It will continue to invest in quality direct property assets and, as always diversification remains a key component.”
“We expect the fund will continue as an open ended fund with the aim of delivering reliable income and long term capital growth to investors,” he says.
The fund has a portfolio of 17 retail, commercial and industrial properties in Australian and <country-region><place>New Zealand</place></country-region>.
The fund delivered shareholders a total return of 7.5% for the year to October 2011.
 
 
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AMP to reopen unlisted retail property fund for first time since GFC

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<img src="/images/stories/qiii.jpg">
Singaporean investors have spent more than $11 million buying apartments off the plan in Fraser’s new residential project in Perth. 
The development known as QIII is part of Frasers’ Queens Riverside Hotel + Residences development, which will offer 408 luxury apartments in three buildings and a 236-room all-suites hotel operated under the Frasers Hospitality brand. 
<img src="/images/stories/qiii2.jpg">
Frasers ran a series of seminars in Singapore in November promoting the project to local buyers and attracted “exceptional interest” as well as sales of $11.1 million, according to CEO Guy Pahor. 
The 26-storey apartment building will feature 265 apartments, of which 125 have been sold. 
Many of the Singaporean buyers purchased with the intention of upgrading from their existing Perth property as the time draws closer to completion of QIII.
Apartments are selling for about $730,000, with $1.4 million the top price achieved to date. It was for a three-bedroom apartment on the 21st floor. 
<img src="/images/stories/qiii3.jpg">
QIII will be the second stage of the development, which is being built for Frasers by Diploma Construction. 
The first stage, the $107.5 million construction of Fraser Suites Perth plus common basements and podium for the Queens Riverside precinct, is now underway.
For more on Asian investors in Australian real estate, download our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">Foreign Investment in Australia's Property Markets.</a>
For more on buying off the plan, donwload our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-10-tips-for-investing-off-the-plan">10 Tips for Investing Off the Plan</a>.
 
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Investors buying off the plan in Perth's QIII

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Gerald Foley, managing director of National Mortgage Brokers, has backed Aussie Home Loans and Mortgage Choice’s requirement that their brokers be members of an industry body of their choosing. 
John Symond’s Aussie Home Loans and Mortgage Choice, the two most well-known mortgage broking brands, are currently awaiting a ruling from the ACCC about whether they can continue to <a target="_blank" href="/news">make membership of the Mortgage and Finance Association of Australia (MFAA) mandatory</a> rather than let brokers choose the MFAA or rival industry body the Finance Brokers Association of Australia (FBAA).
The FBAA claims such mandatory requirements are anti-competitive. 
“The current debate in the market seems to be confused around whether a retail aggregator, such as Mortgage Choice or Aussie, has the right to require their members to be members of an association,” Foley says. 
“To me it seems a reasonable position for a branded business to insist that all its members are following the same set of rules.” 
National Mortgage Brokers, which has about 300 brokers, is a member of both the MFAA and the FBAA, and Foley says it sees value in being a member of an industry association. 
“As far as our brokers are concerned, we encourage all our brokers to also be a member of one of the associations, however it is not mandatory. As most lenders, at least at this stage, still require association membership then most brokers have no option but to join,” he says. 
“I think as we all get more comfortable with licensing more lenders will start to relax their association membership requirements and rely on the aggregator and licence holder’s ability to manage their networks.” 
 
 
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Mandatory mortgage broker association membership reasonable: National Mortgage Brokers

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The only thing that prevented Australian house prices from crashing during the 2008 GFC was the first-home owners’ boost, says Deakin University’s Philip Soos, who believes the sector is now operating like a Ponzi scheme.
Soos, a researcher in Deakin University’s School of International and Political Studies, believes the Australia’s residential property market has resembled the Ponzi stage of financing for the last 11 years.
The Ponzi finance stage is the third and final stage of US sub-prime mortgage theorist and economist Hyman Minsky’s “state capitalist economies cyclically generated crises”.
In the first hedge finance stage “income flows from an asset is sufficient to pay down both principal and interest on the debt financing asset purchases. Prices are based upon fundamentals”.
In the second speculative finance stage “income flows cover only interest, not principal, requiring debt to be continually rolled over. Asset owners may experience financial stress, but it is not widespread, and fundamentals are in kept largely in check”.
During the Ponzi finance stage “income flows cover neither principal nor interest charges. Owners are completely reliant on escalating sale prices (capital gains) to make a profit and meet the cost of the debt. Prices are completely delinked from fundamentals at this stage, resulting in the dreaded bubble.”
“The market would have collapsed during the GFC in 2008 were it not for another first-home owners’ boost re-inflating asset prices to a new, higher peak,” Soos says in an article for academic commentary site <a target="_blank" href="https://theconversation.edu.au/housing-bubble-trouble-separating-facts-from-fiction-5007?utm_medium=email&amp;utm_campaign=Latest+from+The+Conversation+for+January+27+2012&amp;utm_content=Latest+from+The+Conversation+for+January+27+2012+CID_3a05cc55871c06651a4fc3437c781d5a&amp;utm_source=campaign_monitor&amp;utm_term=Housing+bubble+trouble+separating+facts+from+fiction">The Conversation</a>.
“Two types of return tempt house buyers: owning a property valued by the market at a higher price than it was purchased for (capital gain), and increases in the rental income (yield). Property owners hope that they will make a substantial capital gain when they sell, and that rental income can overtake costs over the long run.
“Data from the ATO tells an interesting story. On aggregate, net real rental income has resulted in continuing losses starting at $966 million in 2000, and peaking at $8.8 billion in 2008. Rental income has not exceeded interest costs since 2000, let alone met the costs of maintenance, rates, agent fees and property tax.
“No rational investor knowingly purchases an asset that yields a negative return. Investors are sacrificing cash flow to build assets and realise eventual capital gain,” he says.
According to Soos, the tipping point for the mark will come when “the household sector is so overloaded with debt there exist no more ‘greater fools’ willing to commit to a lifetime of debt serfdom to purchase property”.
“With few buyers and many sellers, prices stagnate then rapidly fall as assets are unloaded en masse onto the market. With demand falling in the housing sector, coupled to an inevitable increase in unemployment, a vicious deflationary spiral occurs. Economy activity grinds to a halt.”
Soos says other arguments put forward by housing bubble deniers don’t stack up including the argument that “restrictive government regulations (RGR) limit the supply of land and timely dwelling construction through zoning controls, development, planning and building laws, driving up housing prices”. Soos says the major difficulty with this argument is that government regulations can only affect rent prices and thus the market-efficient price for land.  “If rent and land prices diverge, however, this argument falls flat – as is the present case. Housing prices have experienced a far greater run-up than rents since 1996. Further, markets would have already priced the supply-side distortions into the cost of housing long before the bubble began. There is no change in RGR that could explain the increase in housing prices from 1996, skyrocketing in 2001,” he says.
He also says low inflation and low interest rates that began in the late 1990s cannot fully explain the jump in house prices. “Even as far back as 2004, the RBA noted that the decrease in inflation and interest rates could only explain a doubling of household debt relative to incomes, and probably less. Household debt has more than quadrupled over this period,” he says. “If this argument were credible, the 1960s should have prompted an even greater household debt ratio as rates were the lowest on record throughout this decade. This did not occur.”
 
 
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Australian housing a Ponzi scheme and the housing price bubble will burst: Academic

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

Joel Robinson

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

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

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

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

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

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

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