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ANZ says a bump up in job advertisements in January means the RBA can hold off cutting interest rates until March.
The latest figures show total job advertisements were 0.7% higher in January 2012 than in January 2011 – the largest rise in job advertising since February 2010.
“Against this local backdrop and that of a persistently weak (but not worsening) global economy, we have forecast that the RBA will need to cut interest rates by 25 basis points in the first quarter of 2012, most probably in March,” says ANZ head of Australian Economics and Property Research Ivan Colhoun.
“Inflation is well contained and the economy can afford to grow a little faster. Beyond March, if we see further confirmation that job ads have stabilised, this will likely be important for monetary policy expectations.
“In particular, we will be less likely to see further interest rate cuts and the market will need to remove some of the aggressive easing profile built into rate curves,” he says.
The job figures had an immediate impact on interest rate betting odds, with TAB odds of a rate cut increasing from $1.20 to $1.26 – still lower than odds it offering of Australia winning the one-day series against India and Sri Lanka, currently at $1.45.
The TAB is paying $1.20 on a 0.25% rate cut but $1.45 on the Australians winning the tri-nations tournament, despite yesterday’s 65-run thumping of the Indians.
There are very long odds ($151) on the RBA pushing up the cash rate by 0.25%.
Sportingbet.com.au is paying $1.22 on a 0.25% rate cut and $3.50 on rates staying the same.
 
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lschlesinger-FZcF9M3vE6

Job ad increase could forestall February rate cut, says ANZ, as TAB odds ease

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Australia’s housing bubble will “pop” if it builds more houses, says US hedge fund manager Jeremy Grantham.
“If you have a housing bubble and you respond by building houses, it pops. It behaves from a bubble expert’s point of view.”
However, Grantham says the RBA’s interest rate cuts are forestalling a property crash.
“The UK and Australia are abhorrent bubbles, because of government policy, you draw out the agony,” he told the Australian Financial Review. According to Grantham, a property crash would be good for the economy and for those who have not bought yet.
Grantham, co-founder of Boston-based hedge fund GMO, caused a stir in April 2010 when he declared a housing bubble in Australia and said prices would tumble as interest rate rose (the Reserve Bank pushed rates up by 25 basis points to 4.25% in April 2010).
His declaration resulted in a flurry of short-selling by Australian banks.
In 2011 Grantham visited Australia and said the housing bubble was about to burst, but later adjusted this forecast to say it might only deflate slowly rather than pop.
Grantham correctly predicted Japanese real estate’s bubble in the 1980s, the bursting of the dotcom bubble and the events that led to the US housing crash in 2008.
He maintains that an overpriced housing market is not healthy for the economy and puts Australia at a risk of a Japanese-style housing scenario.
Under a Japanese scenario those looking to enter the housing market (young first-home buyers) must either continuously save or live outside of the major cities to afford a house.
“For someone that hasn’t bought and for a generally healthy economy it’s better to get rid of it and start again,” he says.
According to Grantham first-home buyers and new arrivals are better of renting than buying at the moment because house prices are being artificially “propped up.
Renting now, he says, is a cheaper and less risky proposition than buying a property.
“You are putting a terrible burden on young families, which is a miserable idea,” he says.
“Japan did it that way and they have worked it out after 20 years. Back in 1990 if you were young you were looking at loony prices for little shacks in Tokyo.”
Backing his argument, Grantham says first-home buyer numbers are at record low ratios in both Australia and the UK. 
Another US analyst, Heather Hagerty of bond fund manager Fidelity Investments, says the 3.5% fall in house prices in 2011 is “comforting” and says a “healthy correction is going on”.
“We take comfort in the fact that the household leverage isn’t growing, that the savings rate continues to be at a high level and the market appears to be reacting to the rate cuts.”
However, while Hagerty says the Australian market is shielded by the tax structure, full-recourse lending, low loan-to-value ratios, she agrees with Grantham that pent-up demand is the issue.
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US analyst Jeremy Grantham adjusts Australian housing price bubble predictions, so watch housing construction numbers now

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An expected cut in interest rates tomorrow will cause housing affordability to improve even further than its current eight-year high and should silence those housing “doomsters” forecasting big drops in house prices over the next few years, according to CommSec chief economist Craig James.
Writing in his latest Investor Signposts report, James notes that a “combination of rising household income and lower housing prices has meant that housing affordability is now at the best levels in over eight years (since 2003)”.
“Another interest rate cut this week will boost housing affordability even further. Where will that leave the doomsters? Basically with nothing to report,” he says.
The “doomsters” forecasting big drops in house prices include University of Western Sydney’s <a target="_blank" href="https://www.propertyobserver.com.au/residential/house-prices-will-be-10-lower-by-the-end-of-the-year-steve-keen/2012020253240">Steve Keen, who expects house prices to fall by between 6% and 10% in 2012</a> principally because mortgage demand is decelerating and the market has shaken off the effects of the “first home vendor’s boost”.
More dramatic predictions have been made by US self-described expert Jordan Wirsz, who forecasts a 60% drop in house prices over the next five year – claims that have been <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-doomsayer-jordan-wirsz-s-predicted-60-drop-in-aussie-house-prices-silly-analysts/2012020353244">rubbished by Australian property market analysts.</a>
James described the 3.6% drop in property prices in 2011 (as recorded by RP Data-Rismark) as a “soft landing” after growth of 5.1% in 2010 and 12.1% in 2009.
“Prices were pumped up in 2009 by super low interest rates and government incentives for first home buyers, so a correction was clearly on the cards as demand and supply moved into balance,” James says.
“And at the end of 2011 it looked like the correction was nearing completion with prices up 0.4% in November and easing just 0.2% in December.”
James also notes that despite the fall in dwelling prices, “total return on dwellings grew by 0.8% in 2011, out-performing shares with the All Ordinaries accumulation index sliding by 11.4% over the year.
“But returns varied from +4.5% in Sydney to -2.3% in Melbourne.”
Speaking on ABC’s Insiders program yesterday, Federal Treasurer Wayne Swan also highlighted improved housing affordability and said cheaper interest rates were saving borrowers about $3,000 per year.
Swan noted that the cash rate currently sits at 4.25% compared with 6.75% when the Labor government came into power.
“If you look at the last two interest rate cuts, somebody on a $300,000 mortgage is paying $3,000 a year less than they were paying when we came to government. So the fact is that the outlook out there is pretty bright.
“The fact is the economy is going along strongly but we've also seen rates come down, two rate cuts in a row, and there are good deals out there in the market,” he says.
Should the major banks not pass on the full rate cuts, they are likely to cop another verbal bashing from the Treasurer, who has dismissed banks’ cries over higher funding costs as highlighted by <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=property+observer+gail+kelly&amp;source=web&amp;cd=3&amp;ved=0CDEQFjAC&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fwestpac-cuts-jobs-as-mortgage-demand-falls-and-wont-commit-to-passing-on-rate-cuts&amp;ei=SQ4vT6SwC-60iQeJh8nTDg&amp;usg=AFQjCNHhpRxC5HtOz9KfJT2lwdChk8n13w">Westpac CEO Gail Kelly last week.</a>
Swan says banks remain “hugely profitable and their net interest margins are back to where they were prior to the global financial crisis”.
A report in today’s Sydney Morning Herald highlighted Westpac’s slowness in passing on the November and December rate cuts, with some borrowers yet to see any repayment relief.
The bank claims it is helping borrowers “get ahead” on their mortgages – borrowers have to call the bank and ask for the rate cut to be passed on.
According to opposition spokesman Joe Hockey borrowers were $700 per year better off under the 12-year reign of the Howard government than under the current Labor government.
 
 
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Rate cut would silence 'doomsters' and improve already high affordability: CommSec's Craig James

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NAB has emerged as the big mortgage winner in 2011, with the bank growing its combined owner-occupier and investment mortgage book by an impressive 12% during the 2011 calendar year, according to official APRA figures.
The bank’s growth rate was also more than <a target="_blank" href="/news">double the national housing credit growth rate of 5.4% for 2011</a> calculated by the RBA (the lowest since the central bank began compiling figures in 1977).
During the year in which NAB kicked off its “Break-up” campaign on Valentine’s Day – encouraging Commonwealth Bank, Westpac and ANZ borrowers to switch to NAB – it grew its mortgage book by $19 billion to $177 billion, comprising $126 billion in owner-occupier mortgages and $52 billion in investment loans.
Year-on-year figures for major and second-tier lenders (owner-occupier and investment loans)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="187" valign="top">
 
</td>
<td width="94" valign="top">
Loan book December 2011
</td>
<td width="113" valign="top">
Loan book December 2010
</td>
<td width="114" valign="top">
Gain over the year
</td>
<td width="107" valign="top">
% change
</td>
</tr>
<tr>
<td width="187" valign="top">
Westpac
</td>
<td width="94" valign="top">
$285 billion
</td>
<td width="113" valign="top">
$268 billion
</td>
<td width="114" valign="top">
$17 billion
</td>
<td width="107" valign="top">
6.3%
</td>
</tr>
<tr>
<td width="187" valign="top">
CBA
</td>
<td width="94" valign="top">
$263 billion
</td>
<td width="113" valign="top">
$252 billion
</td>
<td width="114" valign="top">
$11 billion
</td>
<td width="107" valign="top">
4.3%
</td>
</tr>
<tr>
<td width="187" valign="top">
NAB
</td>
<td width="94" valign="top">
$177 billion
</td>
<td width="113" valign="top">
$158 billion
</td>
<td width="114" valign="top">
$19 billion
</td>
<td width="107" valign="top">
12%
</td>
</tr>
<tr>
<td width="187" valign="top">
ANZ
</td>
<td width="94" valign="top">
$163 billion
</td>
<td width="113" valign="top">
$153 billion
</td>
<td width="114" valign="top">
$10 billion
</td>
<td width="107" valign="top">
6.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bankwest (owned by CBA)
</td>
<td width="94" valign="top">
$45 billion
</td>
<td width="113" valign="top">
$40 billion
</td>
<td width="114" valign="top">
$5 billion
</td>
<td width="107" valign="top">
12.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
ING Direct
</td>
<td width="94" valign="top">
$37 billion
</td>
<td width="113" valign="top">
$36.5 billion
</td>
<td width="114" valign="top">
$0.5 billion
</td>
<td width="107" valign="top">
1.35%
</td>
</tr>
<tr>
<td width="187" valign="top">
Suncorp
</td>
<td width="94" valign="top">
$29 billion
</td>
<td width="113" valign="top">
$28 billion
</td>
<td width="114" valign="top">
$1 billion
</td>
<td width="107" valign="top">
3.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bendigo and Adelaide
</td>
<td width="94" valign="top">
$22 billion
</td>
<td width="113" valign="top">
$19 billion
</td>
<td width="114" valign="top">
$3 billion
</td>
<td width="107" valign="top">
15.7%
</td>
</tr>
<tr>
<td width="187" valign="top">
Bank of Queensland
</td>
<td width="94" valign="top">
$21 billion
</td>
<td width="113" valign="top">
$17 billion
</td>
<td width="114" valign="top">
$4 billion
</td>
<td width="107" valign="top">
23.5%
</td>
</tr>
<tr>
<td width="187" valign="top">
HSBC
</td>
<td width="94" valign="top">
$7.3 billion
</td>
<td width="113" valign="top">
$6.8 billion
</td>
<td width="114" valign="top">
$0.5 billion
</td>
<td width="107" valign="top">
7.3%
</td>
</tr>
</tbody></table>
Source: APRA figures
When including the performance of its subsidiary Bankwest (growth of 12.5%) the Commonwealth Bank managed growth of 9.4%. As a stand-alone brand, the Commonwealth Bank managed growth of 4.3% for the year.
ANZ and Westpac (including St George and Bank of Melbourne) managed similar mortgage growth of 6.5% and 6.3%.
Using the same APRA figures but over a longer period and looking only at owner-occupier mortgages, The Weekend Australian shows the big four have grown their mortgage books by a combined $175 billion since the GFC (November 2008- December 2011), with Westpac showing the greatest growth (helped by the addition of St George’s $38 billion book) from $75 billion to $166 billion.
Federal Treasurer Wayne Swan disagrees that the major banks are increasing their market share.
“A lot of what you read from time to time in this area doesn't match up with the facts. We have powerful vested interests out there that are pushing their line all the time,” Swan said in an interview on the ABC’s Insiders program yesterday.
“Certainly the big four have a large market share, but these competition reforms are driving the capacity of the smaller lenders to get in there and to provide some vigorous competition and to give consumers a choice so that if they're unhappy with one of the big banks they can walk down the road and get a better deal,” he says.
Among the second-tier lenders, Bank Queensland was the star performer, recording mortgage growth of 23.5% over 2011, followed by Bendigo and Adelaide Bank (15.7%).
NAB has maintained the lowest standard variable interest rate of the big four banks – currently at 7.22% compared with ANZ’s 7.3%, Commonwealth Bank’s 7.31% and Westpac’s 7.36%.
It also currently has the lowest standard variable mortgage in the market through its online brand Ubank – currently at 6.14%, though only for those borrowers who are refinancing.
 
 
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Second-tier lenders and NAB big winners in 2011 mortgage wars

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Sydney’s residential vacancy rate eased by 0.2% to 1.6% in December, the first increase in three months, according to the latest data from the Real Estate Institute of NSW, which has labeled the increase merely “seasonal”. 
Sydney’s inner suburbs (zero to 10 kilometres from the CBD) and the middle suburbs (10 to 25 kilometres from the CBD) recorded a 0.3% increase in their vacancy rates to 1.5% and 2% respectively in the results released earlier this year. 
In the outer suburbs (more than 25 kilometres from the CBD), vacancies improved by just 0.1% to an extremely tight 1.4%. 
Outside of Sydney vacancy rates deteriorated in other major metropolitan centres, with Newcastle recording a significant decline in available properties for the second consecutive month. 
In December the rental vacancy rate for Newcastle fell by 0.5% to 1.1%, further compounding the 0.3% recorded in November. 
The overall rental vacancy rate across the Hunter region fell by 0.3% to 1.1%. 
In Wollongong the vacancy rate fell by 0.1% to 2.2% while across the entire Illawarra region, the percentage of available properties declined 0.2% to 1.6%. 
Vacancy rates on the central coast rose slightly, up 0.1% to 1.6%. 
REINSW Christian Payne warns the rental situation will only become tighter in 2012. 
“The new year traditionally signals an increase in demand for rental properties across the board. 
“The already low levels of available rental properties are likely to be squeezed even further as people return to work and schools and universities resume for the academic year. 
“Unfortunately for those seeking rental accommodation, the situation will only become more difficult in the first quarter of 2012”, he says.
 
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Sydney vacancy rate eases in December, but REINSW predicts tightening in 2012

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US house prices fell by almost the same amount as Australian house prices did in 2011 mainly due to distressed sales, according to new figures by US research firm CoreLogic. 
The CoreLogic December Home Price Index shows that US house prices (including distressed sales) fell 4.7% in December 2011 compared with December 2010. 
Excluding distressed sales home prices decreased by 0.9% in 2011 in the US, giving an indication of the impact of distressed sales on home prices in 2011. 
Including distressed sales, the five states with the highest house price appreciation in 2011 were:  Montana (+4.4%), Vermont (+4%), South Dakota (+3.1%), Nebraska (+2.5%) and New York (+1.7%). 
The five worst-performing state housing markets in 2011 were Illinois (-11.3%), Nevada (-10.6%), Georgia (-8.3%), Ohio (-7.7%), and Minnesota (-7.5%). 
Figures put out by the ABS earlier this week show a 4.8% drop in capital city house prices over the course of 2011. 
However, while the CoreLogic US house price index has now fallen for the fifth straight year, Australian capital city house prices have only declined twice over the same five-year period (the other declining year being in December 2008 following the GFC), with moderate to strong gains in the other years (up 9.7% in 2006, 14% in 2007, 13.9% in 2009 and 4.6% in 2010). 
US house prices fell 4% in 2010, 3% in 2009, 17% in 2008 and 9% in 2007, CoreLogic data shows. 
According to the CoreLogic report, national home prices including distressed sales decreased 1.4% on a month-on-month basis in December, the fifth consecutive monthly decline. 
Excluding distressed sales, house prices increased 0.2%, the first month-on-month gain since July 2011. 
Commenting on the figures, CoreLogic chief economist Mark Fleming says while overall prices declined by almost 5% in 2011, non-distressed prices showed only a small decrease. 
“Until distressed sales in the market recede, we will see continued downward pressure on prices,” he says.  
 
 
December HPI for the Country’s Largest CBSAs by Population: 
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="272">
 
</td>
<td valign="bottom" colspan="2" width="227">
December 2011 12-Month HPI
</td>
</tr>
<tr>
<td valign="top" width="272">
CBSA
</td>
<td valign="bottom" colspan="2" width="227">
 Change by CBSA
</td>
</tr>
<tr>
<td valign="top" width="272">
 
</td>
<td valign="top" width="113">
Single Family 
</td>
<td valign="top" width="113">
Single Family  Excluding Distressed
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Chicago-Joliet-Naperville, IL
</td>
<td valign="top" nowrap width="113">
-11.8%
</td>
<td valign="top" nowrap width="113">
-2.9%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Atlanta-Sandy Springs-Marietta, GA
</td>
<td valign="top" nowrap width="113">
-9.0%
</td>
<td valign="top" nowrap width="113">
-3.3%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Los Angeles-Long Beach-Glendale, CA
</td>
<td valign="top" nowrap width="113">
-6.2%
</td>
<td valign="top" nowrap width="113">
0.3%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Riverside-San Bernardino-Ontario, CA
</td>
<td valign="top" nowrap width="113">
-5.9%
</td>
<td valign="top" nowrap width="113">
-4.2%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Houston-Sugar Land-Baytown, TX
</td>
<td valign="top" nowrap width="113">
-3.2%
</td>
<td valign="top" nowrap width="113">
2.7%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Phoenix-Mesa-Glendale, AZ
</td>
<td valign="top" nowrap width="113">
-2.6%
</td>
<td valign="top" nowrap width="113">
-4.5%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Philadelphia, PA
</td>
<td valign="top" nowrap width="113">
-1.5%
</td>
<td valign="top" nowrap width="113">
-0.7%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Washington-Arlington-Alexandria, DC-VA-MD-WV
</td>
<td valign="top" nowrap width="113">
0.2%
</td>
<td valign="top" nowrap width="113">
2.4%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
Dallas-Plano-Irving, TX
</td>
<td valign="top" nowrap width="113">
0.3%
</td>
<td valign="top" nowrap width="113">
2.7%
</td>
</tr>
<tr>
<td valign="top" nowrap width="272">
New York-White Plains-Wayne, NY-NJ
</td>
<td valign="top" nowrap width="113">
0.4%
</td>
<td valign="top" nowrap width="113">
1.4%
</td>
</tr>
</tbody></table>
Source: CoreLogic
 
 
 
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US matches Australia with 4.7% drop in house prices in 2011

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Low inflation figures have given the Reserve Bank scope to cut interest rates when it meets on Tuesday but it might adopt a wait-and-see approach, says HSBC economist Paul Bloxham. 
Bloxham says it’s a close call because while HSBC expects to rate cuts in the first half of the year, “the issue is timing”. 
“Global financial conditions have stabilised recently, which may give the RBA more time to see the impact of earlier cuts. Also, many of the structural upside risks to medium-term inflation persist, such as weak productivity growth, so the RBA may want more evidence of easing unit labour costs before moving again. 
“So, while we think the RBA will need to cut further, cuts this month are not a done deal. What is clearer to us though is that the 100 basis points priced in by markets over the next year seems overdone, given the structural inflation issues Australia still faces,” he writes in his latest RBA Observer report. 
Putting forward the case for a February rate cut, Bloxham says inflation numbers for the fourth quarter were “low enough to give the RBA an open door to cut rates”. 
“The trimmed mean was in the middle of the band quarter-on-quarter and year-on-year, and at the bottom of the band in the second half of 2011,” writes Bloxham. 
“Base effects are likely to bring year-on-year inflation down further in the first quarter of 2012,” he adds. 
Bloxham also notes the slowdown in the economy, which has taken further pressure of inflation. 
“Employment is contracting, falling in December, and the unemployment rate is 5.2%, up from 4.9% in early 2011. Job advertisements have edged downward; a further reading for January is published on Monday, and anecdotal reports suggest it will weaken. 
“Growth is expected to ease in the first half of 2012 as Australia’s trading partners slow down and the looser labour market weakens household spending. 
“At the same time, financial conditions are tighter than they were late last year. The cost of bank funding has risen, due to the European financial crisis, putting downward pressure on bank net interest margins and upward pressure on effective interest rates. 
“The exchange rate has also been at very high levels in recent weeks, further dampening activity in parts of the economy. The fiscal setting is also tight. The government’s political imperative to achieve a budget surplus by 2012-13 is seeing public demand subtracting from the economy. 
“This leaves the RBA to respond to the easing labour market. These arguments are why we think the RBA will cut rates on Tuesday.”
 
 
 
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February rate cut likely but not certain: HSBC

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Westpac says expectations of lower mortgage growth and the need to remove duplicate back-office roles as part of phase two of its post-St George merger are the reasons for its decision to axe about 560 jobs.
Peter Hanlon, Westpac financial services executive, says the job cuts will mostly be in mortgage processing and head office roles.
“We don’t see in the near to medium term a pick-up in housing or business credit growth,” he said following the announcement.
Hanlon estimates about one-third of those axed will be transferred to other roles, with up to 400 staff made redundant.
The move to cut jobs has been slammed by the Finance Sector Union, which has urged the government to intervene and stop the cuts. 
“Westpac can afford to keep every single one of these workers in their jobs and continue to make a multi-billion-dollar profit,” says FSU secretary Leon Carter.
In an interview on ABC radio today, Westpac CEO Gail Kelly refused to rule out further job cuts and would also not say how much of an expected February rate cut the bank would pass on to borrowers.
Her comments on higher funding costs suggest borrowers should brace themselves for the banking not matching any RBA move.
“These are complex matters and we won’t foreshadow and decision ahead of the time,” Kelly said, adding that the linkage between interest rate decisions and the cash rate had weakened.
However, she said the actions of the European Central Bank (ECB) in December that injected significant liquidity into the banking system had taken “the cataclysmic risk of the eurozone collapsing off the table”.
“[The actions of the ECB] have underpinned the banking system and the eurozone overall,” Kelly said.
However, she said hopes voiced a year ago that funding costs would be on the decline and returning to more normal levels had not happened,
“The troubles in the Eurozone means they have remained elevated. If anything they are higher now then they were at any times during the entirety of GFC and its more expensive to raise deposits,” she said.
Kelly said the bank had to safeguard net interest margins on its loans or else face the risk of potentially reducing the level of credit provided and “potentially landing up in a credit crunch”.
“We’re into a very much more slowing growth world – you only have to look at Europe to see that we are into several more years of much slower growth.
“This changed world brings with it higher levels of funding costs and changing consumer patterns and as banks we do need to adjust.”
She also defended the jobs cuts and said they were part of plans to simplify banking systems.
“This is the largest announcement we are likely to make this year …you can expect us to have a lower number of employees at the end of the year than we had at the beginning,” she said.
Kelly pointed out the bank was adding new roles at the same time as sacking staff, adding about 200 staff to its Bank of Melbourne operations, 50 new roles in financial advice, 50 new roles in institutional banking and has recently recruited 83 graduates.
The Property Council of Australian office report forecasts 7,000 financial services jobs to go in 2012.
ANZ axed about 130 positions earlier this month while the Royal Bank of Scotland plans to cut 170 jobs in Australia.
 
 
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Westpac cuts jobs as mortgage demand falls and won’t commit to passing on rate cuts

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Claims by self-promotional US real estate analyst Jordan Wirsz that Australian house prices could fall by up to 60% over the next five years have been torn to shreds by Australian property market analysts.
Wirsz is bearish about global property but <a target="_blank" href="https://www.propertyobserver.com.au/residential/incredible-prediction-of-australian-property-bloodbath-excites-twitter/2012012053102">particurlarly bearish about Australian real estate</a> because of “artificially low interest rates, high loan-to-value lending practices, overinflated property prices, unrealistic vendor expectations and Australia's large number of second mortgages”.
"There have been corrections but they don’t hold up to the scale of what is coming,” he says.
Fairfax columnist and property market analyst Mark Armstrong says if what Wirsz is predicting is true in a few years’ time  a $1 million house in Sydney, currently let for about $700 per week, will be worth just $400,000.
“While this happens the Reserve Bank of Australia that currently has the cash rate set at 4.25%, a full 4% above the US, will sit back and watch.
“Further, the government with a public debt of about 20% of GDP compared to the US's almost 95% will watch as the single largest asset of most Australians goes down the gurgler. I think not,” says Armstrong.
Armstrong also points to the current conservative lending practices and robust supervision demanded by the IMF and Australian banks low exposure to non-conforming high-risk loans and the fact that the vast majority of loans are full recourse (as opposed to many in the US, where borrowers can just drop their keys in the letter box) as further evidence that such dramatic falls are entirely unlikely.
“Very broad-based comments like these fail to recognise the complex nature and differences between property markets, demographics and economic factors from country to country.
Hotspotting.com.au director Terry Ryder describes Wirsz alongside another US property bear Harry Dent as one of a number of US punters “seeking profile at the expense of Australian home owners”.
“Jordan who?, I hear you ask,” writes Ryder.
“Dent forecast a 50% drop. Wirsz (allegedly a self-made millionaire) went further, predicting a 60% decline. But he went further still – land values would fall 80% to 90%, Ryder says.
“Just pause a moment and contemplate what he is suggesting. A fall of 90% means a decline to almost no value at all. If a block of city suburban land is worth $200,000, a decline of 90% means it would be worth just $20,000. Given that planning charges per allotment are generally much higher than $20,000, this is just silly stuff.
“That didn’t prevent headlines in Australia such as ‘Bloodbath to hit real estate’,” says Ryder.
He has also been caught up in a stoush with well-known TV commentator and author Margaret Lomas on Sky Business.
Property Observer has not yet seen the debate, but believes it was heated.
Lomas tells Property Observer she kept challenging Wirsz on the facts and where he sources his information from and his only response was, “on the internet…”.
Writing following the debate, Wirsz writes “Well, that was fun debating on live national television with a clueless investor promoting her own agenda (funny cause that's what she accused me of!) time will tell who is right... :)”
“Pity he didn’t research me,” says Lomas. “He would have found out that far from being a ‘clueless investor’ as he puts it, I have been in this business longer than he has been alive, own 38 of my own properties, run a national company and have a long list of qualifications and credentials, many economics-based.”
Wirsz claims to have achieved over $500 million in sales and advised Fortune 500 CEOs about real estate investments.
He describes his life so far on his Facebook page as “a storybook tale of rags to riches, overcoming the ever-so-common challenging childhood, and working hard to attain his massive successes”.
Other descriptions appear plucked straight from Charles Dickens.
He describes himself <a target="_blank" href="https://www.prweb.com/releases/Jordan_Wirsz/Dallas/prweb3988434.htm">on PRWeb</a> (a press release distribution website) as “having come from a broken home and spending much of his childhood alone, even calling 4-1-1- up to 25 times a day just to hear another human's voice, has decided to take his challenges and turn them into a passion for feeding the world his secrets to his extraordinary success.”
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US doomsayer Jordan Wirsz's predicted 60% drop in Aussie house prices 'silly': Analysts

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AFG mortgage brokers arranged 4,736 home loans worth a combined $1.8 billion in January 2012, a 40% increase on January 2011, when brokers wrote 3,583 worth $1.3 billion. 
The aggregator says the January result marked a return to more normal trading levels after January 2011 was affected by the Queensland floods and other natural disasters. 
Not surprisingly, one of the biggest jumps in mortgage sales was recorded in Queensland, where brokers wrote 80.6% more mortgages in January 2012 than January 2011. 
The top performer was South Australian, where sales increased by 84.5% compared to a year ago. 
There were also significant uplifts in WA (+ 37.4%), Victoria (+25%) and NSW (+14.5%). 
In January WA also took over from NSW as the most popular state for first-home buyers, with almost one in five new mortgages (19.1%) in WA arranged for first-home buyers compared with 14% in NSW. 
NSW retained its position as the most popular state for property investors, with 40.2% of loans arranged for investment purposes, compared to 36.8% in Victoria, 34.9% in Queensland, 32.6% in Western Australia and 32.0% in South Australia. 
Major banks recovered some of the market share they lost in December, writing 79% of all mortgages in January, compared with 76% in December.  A year ago major banks wrote 81% of all AFG mortgages. 
Mark Hewitt, general manager of sales and operations, says: ‘While markets across the country have recovered from last year’s natural disasters, right now we have a strong sense that borrowers are playing wait and see on rates. 
“Will the RBA cut rates, and if so, how much of this will be passed on by lenders? 
“It seems that we are moving to a new paradigm where there is less and less linkage between the cash rate and mortgage rates. An RBA cash rate cut will not automatically translate into improved consumer confidence." 
The AFG Mortgage Index also shows that nearly one in five new borrowers (18.6%) opted for a fixed-rate home loan. This figure is close to the high water mark of 20.4% for fixed-rate products recorded last October.
 
 
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Mortgage sales up 40% in January year-on-year: AFG

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

Joel Robinson

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

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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