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Asian investment in Australian real estate is set to expand in the mining sector with Indian government-owned mining company NMDC Limited undertaking due diligence of two Australian mining properties, one in Western Australia and the other in the Northern Territory.
NMDC is looking to acquire Atlas Mining’s 2 billion-tonne Ridley magnetite iron ore project in the Pilbara region of Western Australia (75 kilometres east of Port Hedland) and Minemakers Ltd’s Wonarah phosphate reserve, about 260 kilometres east of Tennant Creek in the Northern Territory.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/hefty-residential-rentals-in-the-booming-pilbara-matching-the-east-coast-s-wealthy-suburbs/2011120752707">Port Hedland property prices have soared</a> in the wake of the mining boom, with RP Data reporting a median sales price of $1.1 million and median rents of $2,200.
Tennant Creek house prices are up 34.4%, with a median sales price of $215,000. Hotspotting.com.au’s <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/mining-towns-could-be-2012-property-hotspots-terry-ryder/2012011153008">Terry Ryder picked Tennant Creek</a> as the best-performing Northern Territory market of 2011.
The Indian mining giant is believed to be in advanced discussions for a $200 million line-of-credit loan to fund the acquisitions and other mine development programmes, reported Indian website Zeebiz.com.
It has also been reported the NMDC is seeking to invest in Queensland coal projects.
NMDC is expected complete negotiations and due diligence processes for the two mines by March.
Indian interest in Australian mines follows increasing Asian investment in Australian mines including South Korea steelmaker Posco recently expanding its holdings in the Roy Hill iron ore mine in the Pilbara from 3.75% to 15%.
In 2010 Posco acquired a 70% stake in Anglo's Sutton Forest coalmine, on the NSW south coast, for $50 million.
Thailand coal group Banpu acquired 80% of Centennial Coal in July 2010 for $2 billion.
NMDC investment in Wonarah will help fund the building of a railway link to Tennant Creek, which could cost as much as $620 million.
Wonarah is one of the largest under-developed phosphate reserves in Australia, with an estimated resource of 1.26 billion tonnes. Wonarah's phosphate rock is one of the key inputs of the global fertiliser market.
Reports that NMDC is carrying out due diligence of the Wonarah mine follows it entering into a memorandum of understanding with Minemakers in July last year to acquire a 50% interest in the project.
<img src="/images/stories/ridley.jpg">
Last year, NMDC, which has a market capitalisation of around $20 billion, acquired a majority holding (50%) of Perth-based Australian exploration company Legacy Iron Ore for $18.9 million.
NMDC is India's largest iron ore producer and exporter, presently producing about 30 million tons of iron ore from three mines in India.
To find out more about Asian investment in Australian real estate download our free eBook: <a href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">Foreign Investment in Australian Property Markets</a>.
 
 
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lschlesinger-FZcF9M3vE6

Indian mining group set to buy two Australian mines

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Despite having unfashionable reputations due to swathes of unattractive McMansions and fibro cottages, western Sydney suburbs like Liverpool, Blacktown and Penrith are making appearances on hotspot lists primarily because of investments in infrastructure, job creation initiatives, new residential developments and more affordable properties. The most recent list of the 50 suburbs with the greatest capital growth potential featured in Smart Property Investment magazine included four western Sydney suburbs. Rental yields of between 5% and 6% are also encouraging investors to consider these outlying parts of greater Sydney.
Location: 
Western Sydney comprises 14 local government areas extending from Auburn (19 kilometres west of Sydney) all the way to the Blue Mountains (50 kilometres away). Prominent residential suburbs include Blacktown, Liverpool, Bankstown, Parramatta, Campbelltown and Penrith.
Key demographics:
Western Sydney is one of Australia’s largest urban areas and home to just over one in 11 Australians. It has a population of about 2 million people and is growing at a rate of about 36,000 people per year (1.8%), slightly higher than the average growth rate of 1.7% for the Sydney metropolitan region.  Western Sydney’s population is forecast to reach 2.9 million by 2036.
It is an extremely diverse, migrant-rich part of Australia, with half of the world’s nations represented among its residents. In the Fairfield municipality alone, more than 70 different languages are spoken, while Auburn is home to people from more than 100 nations.
It is popular with young families and has a younger population than Sydney. More a third of residents (37.3%) in western Sydney are 24 or younger.
Western Sydney spans the social spectrum and includes areas of prosperity, enterprise and innovation and some areas of disadvantage.
Infrastructure, jobs and residential developments:
The NSW government aims to improve already strong transport links between western Sydney and the Sydney CBD. In its 2011-12 budget it allocated $314 million to develop the train line between Epping and Rouse Hill, while the south-west rail link is already under construction and due for completion by 2016. It will provide train services operating to Liverpool, the Sydney CBD, and Parramatta.
Two areas within western Sydney (the north west and the south west) have been earmarked as major residential growth centres over the next 25 to 30 years with plans for 181,000 dwellings. The north-west growth centre is approximately 10,000 hectares and includes the suburbs of Baulkham Hills, Blacktown and Hawkesbury with plans for 70,000 new dwellings at Rouse Hill.
The south-west growth centre is within the boundaries of Liverpool, Camden and Campbelltown and is made up of about 17,000 hectares with capacity for about 110,000 new dwellings.
As part of its Sydney Metropolitan Plan, the NSW government is looking to increase employment in western Sydney with the development of the Western Sydney Employment Area located near the intersection of the M4 and M7 motorways. The zone is expected to eventually accommodate approximately 40,000 workers and is located close to western Sydney’s north-west and south-west growth centres.
The property numbers you need to know:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="124" valign="top">
 
</td>
<td width="105" valign="top">
Population
</td>
<td width="95" valign="top">
Median house price
</td>
<td width="71" valign="top">
Gross rental yield
</td>
<td width="104" valign="top">
Median unit price/yield
</td>
<td width="31" valign="top">
Gross rental yield
</td>
<td width="86" valign="top">
Distance from Sydney
</td>
</tr>
<tr>
<td width="124" valign="top">
Blacktown
</td>
<td width="105" valign="top">
39,000
</td>
<td width="95" valign="top">
$376,000
</td>
<td width="71" valign="top">
5%
</td>
<td width="104" valign="top">
$285,000
</td>
<td width="31" valign="top">
6%
</td>
<td width="86" valign="top">
34 kms
</td>
</tr>
<tr>
<td width="124" valign="top">
Liverpool
</td>
<td width="105" valign="top">
21,000
</td>
<td width="95" valign="top">
$400,000
</td>
<td width="71" valign="top">
5%
</td>
<td width="104" valign="top">
$250,000
</td>
<td width="31" valign="top">
6%
</td>
<td width="86" valign="top">
32 kms
</td>
</tr>
<tr>
<td width="124" valign="top">
Penrith
</td>
<td width="105" valign="top">
11,300
</td>
<td width="95" valign="top">
$335,000
</td>
<td width="71" valign="top">
5%
</td>
<td width="104" valign="top">
$247,000
</td>
<td width="31" valign="top">
6%
</td>
<td width="86" valign="top">
50 kms
</td>
</tr>
<tr>
<td width="124" valign="top">
Rosemeadow
</td>
<td width="105" valign="top">
7,400
</td>
<td width="95" valign="top">
$312,000
</td>
<td width="71" valign="top">
6%
</td>
<td width="104" valign="top">
n/a
</td>
<td width="31" valign="top">
n/a
</td>
<td width="86" valign="top">
56 kms
</td>
</tr>
<tr>
<td width="124" valign="top">
Sydney
</td>
<td width="105" valign="top">
4.5 million
</td>
<td width="95" valign="top">
$550,000
</td>
<td width="71" valign="top">
4.5%
</td>
<td width="104" valign="top">
$453,000
</td>
<td width="31" valign="top">
5.2%
</td>
<td width="86" valign="top">
 
</td>
</tr>
</tbody></table>
 
Current state of the market
SQM Research director Louis Christopher describes Blacktown as having a good ratio of income to house prices with income growth rising quickly due to changes in demographics. Vacancy rates are just 1.1%. Furthermore Blacktown has good transport connections to Sydney via rail and motorways.
Similarly, the vacancy rate in Liverpool is just 1.4%, with prices of houses and units still affordable compared to Sydney and the ratio of income to house prices is good. Liverpool is on four Sydney railway lines.
Vacancy rates in Penrith are just 0.6%, the suburb has very good income-to-house price ratios and has excellent rail and motorway links to Sydney. Christopher describes Penrith as “a good safe option for investors”.
Douglas Driscoll, CEO of Starr Partners, expects the western Sydney market to get stronger with new suburbs and shopping districts appearing, businesses establishing and settling in the area, transport connections improving and large master-planned residential developments are appearing. “No other area in Sydney is seeing that amount of change so quickly,” he says.
A further indication of the strong appeal of western Sydney, the regional hub of Liverpool recorded the highest number of buyers applying for stamp duty exemptions during December 2011, ahead of the NSW government limiting concessions to those buying newly constructed houses and units. Second on the list was Blacktown, followed by Westmead, Campbelltown and Parramatta.
Reasons to consider buying/investing:
<ul>
<li>Growing population, new residential developments and businesses coming into the area</li>
<li>Popular with middle-income earners and young families</li>
<li>Multiple rail and motorway connections to Sydney CBD and being expanded.</li>
<li>More affordable houses than in Sydney</li>
<li>Rental yields of between 5% and 6% generally higher returns than available in Sydney  
</li>
</ul>
Reasons to consider not buying or investing:
<ul>
<li>Not fashionable suburbs</li>
<li>Still fairly significant commuting distances from Sydney</li>
<li>More vulnerable to declines in the economy and rises in unemployment – it maintains its reputation as Australia’s mortgage repossession belt with a higher proportion of lender repossessions in Western Sydney compared to rest of NSW</li>
<li>Crime is still an issue in some parts highlighted by a recent spate of drive-by shootings in Parramatta, Holroyd, Auburn and Bankstown areas</li>
<li>Still overrun with McMansions</li>
</ul>
What property analysts are saying about Western Sydney:
Louis Christopher: ''The western suburbs will likely outperform the rest of Sydney and Sydney out perform all capital cities [in 2012].''
''Increasingly investors are seeing that Sydney's west might offer just as much capital growth as Sydney's inner ring but at the same time they're going to get higher yields and fairly high rental growth as well,''
Douglas Driscoll: “There will continue to be infrastructure growth, new developments and rental yields of 5% to 6% in greater western Sydney. Investors will continue to head west, lured by affordable property with high returns and higher stock levels.”
Hotspotting.com.au director Terry Ryder: “The Blacktown area grew in popularity throughout 2009 and 2010, with lower-end buyers targeting it as an affordable area with good transport links, making it Sydney's most popular area for home sales. The upgrade to parking infrastructure at several train stations in the Blacktown area adds to its appeal.”
Two potential investment properties up for sale:
Homeland Real Estate Liverpool is selling <a href="https://www.realestate.com.au/property-house-nsw-liverpool-106561070">this 385-square-metre, four-bedroom townhouse on Memorial Avenue</a> close to the Liverpool CBD with an asking price of $469,000. The townhouse is currently returning weekly rent, of $485 equating to a yield of around 5.4%
<img src="/images/stories/auburnhouse.jpg">
Roy Halabi from Guardian Property Specialists is selling <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-auburn-108598416">a four-bedroom penthouse apartment across from Auburn train station</a> with distant city views (pictured below) with an asking price of $450,000. Halabi says the property has the potential to charge weekly rent of $550, equating to a yield of about 6.4%
<img src="/images/stories/westernsydney2.jpg">
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Hotspots: From fibros to McMansions, western Sydney attracting investor attention

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Home loan applications are up 23% for the first three weeks of January 2012 compared with January 2011, according to RateCity.com.au.
The mortgage comparison website recorded an increase in activity over the past six months and a 41% jump in applications in December 2011 compared with July 2011.
It is unclear though how much of this increased activity is due to borrowers taking out new home loans or existing home owners refinancing their mortgages, as RateCity.com.au is unable to provide a breakdown of home loan applicant types.
RateCity.com.au has attributed the increased activity to lower property prices, two successive interest rate cuts and “aggressive discounting by lenders eager to kick-start the borrowing market”.
It has also noted a return of first-home buyers to the market following RBA data showing that first-home buyers make up one in five (20%) of all mortgages for the first time in almost two years.
Damian Smith, RateCity's CEO, said the mortgage market is finally picking up the pace.
"This year, the mortgage market looks set to recover from the past two years of slower growth," Smith says.
"While we're yet to see the strong numbers of home buyers from five years ago, lenders are likely to see business improving this year as borrowers react to lower prices and interest rates."
Almost 51,000 home loans were financed in November, according to figures from the Australian Bureau of Statistics released last week.
"This is the biggest number of home loans financed recorded by the ABS for two years," says Smith. "The dollar value of these home loans was almost $15 billion in November alone."
According to RateCity.com.au, the lowest rate on a three-year fixed-rate loan is 5.95% offered by non-bank lender HomeStar Finance, which is funded by ING; Deutsche Bank and HSBC.
The lowest standard variable rate loan is offered by non-bank lender State Custodians at 6.22%. NAB’s Ubank is offering a refinancing standard variable loan at 6.14%.
 
 
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Mortgage applications up 23% in January: RateCity

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More than half of the more than 4,000 apartments in the pipeline in Brisbane’s development hotspot of Fortitude Valley, Bowen Hills and surrounding northern fringe suburbs are yet to be sold, according to the latest figures from research group Oliver Hume.
During the months of September, October and November 2011, 146 apartments were sold in this precinct, the highest volume of sales in Brisbane.
About 2.3 years of supply remaining at current sales rates.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/fortvalley.gif"><img src="/images/stories/fortvalleythumb.gif"></a>
According to Oliver Hume, the variety of stock on offer contributed to the high level of sales.
The Vecchio Property Group’s The Rivé apartments at Breakfast Creek was the most successful project for the quarter, accounting for more than a third (56) of this total.
Of the 29 projects being marketed in the northern fringes area, 14 have sold more than 50% of their available residential stock while just seven have sold 75% of their stock.
Projects spearheaded by noted property developer David Devine have performed strongly to date.
The Chelsea, a New York-style project being developed by Devine’s Metro Property Group, is 98% sold, with 191 out of the 195 apartments snapped up. The development consists of two towers of 12 levels each with one-bedroom apartments priced at $295,000.
The Hamilton Harbour project on the Brisbane River being developed by Devine Limited and Leighton Properties has sold 98% of the 257 apartments in Harbour One and 85% of the 212 apartments in Harbour Two.
One-, two- and three-bedroom apartments have been priced from $422,000 and rise to $2.25 million.
Laing O’Rourke’s $250 million McLachlan  &amp; Anne (M&amp;A) project under construction at McLachlan, Connor and Ann streets in Fortitude Valley is 72% sold, with 163 out of the of the 234 one- and two-bedroom apartments now sold.
Other apartment projects in Fortitude Valley appear less successful.
At the end of November all 131 apartments in the Alex Perry Residential 11-storey designer block were still available for purchase.
According to a spokesperson for the project, five apartments had been sold in January, and the project is “performing well”.
Another Fortitude Valley project, Belise, was unsold up until the end of November, according to research by Oliver Hume.
Construction of the 199 apartments at the St Paul’s Terrace is due to commence in the second quarter of next year.
In September last year a spokesperson for this development told Property Observer about 50 had been sold off the plan since launching in October 2010.
Photograph by Michael Zimmer
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More than half of Fortitude Valley's new stock yet to find buyers

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RP Data’s Tim Lawless has given qualified support to the findings of US-based research group Demographia that Australian housing is among the most unaffordable in the world.
According to Demographia’s <a href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110" target="_blank">eighth annual International Housing Affordability Survey</a>, Australian cities are among the most unaffordable in the world, led by Sydney with a median multiple (the ratio of median house price to median income) of 9.2 and Melbourne with a median multiple of 8.4. It places the blame on restrictive land use policies that encourage speculators and investors in dense urban areas.
Lawless says Demographia might exaggerate the affordability figures “slightly” but there is no doubt Australian cities are expensive places to buy homes.
“There are some flaws in the Demographia methodology – they use median house prices, whereas a better guide would be median dwelling prices, as around 35% of dwellings in Australia are units. Also it does not include regional dwelling prices and is focused on capital cities,” he says.
If you include these figures, Lawless says, “median prices will come down much further”.
These methodology issues aside Lawless backs the survey and says it reflects the fact that “we are in a market place that does have affordability challenges and even though we have seen price declines, we have not seen a dramatic improvement in the affordability level”.
According to Lawless, affordability is already changing consumer behaviour.
“There isn't any argument that in areas like Sydney for example, affordability is a real issue and we are seeing more and more people look towards the unit market as opposed to the detached housing in an effort to combat affordability,” he says in an interview on ABC radio.
Demographia founder and report author Wendell Cox says Australian house prices are two to three times higher than what they should be and says land use regulation and a focus on developing housing close to the major cities is to blame.
“There is nothing unique at all in Australia for prices to be so unaffordable… Basic economics tells us that when you create a shortage of anything, be it land or cars, you are going to drive the prices up.
“[Housing affordability problems in Australia] have to do with land use regulation, this philosophy of urban consolidation which has drawn strict borders around virtually all [Australian] capital cities so that it is virtually impossible to build much on the fringe of the city.”
Cox says regulations governing land development fuels property speculation and says such policies ultimately led to the bursting of the property bubble in the US.
“Australia has a housing bubble, of that there is no question. Australian housing is incredibly over-valued by any sort of international standard.
“Whether it bursts or not is beyond my ability to predict.”
Cox says investors are not drawn to markets that don’t have constraints.
“There aren’t any speculators in Dallas-Fort Worth or Atlanta. Why? Because you can develop land there.”
“It’s just unbelievable that sections of land in the suburbs of Sydney are going for $200,000 and $300,000 – we’re selling houses for that in a lot of urban areas in the US and Canada.”
Cox says there is plenty of room for expansion around Sydney, Melbourne, Adelaide, Perth and Brisbane.
Lawless agrees that land restrictions are driving prices up, but says there are other factors which have contributed to Australian house prices being far higher than in the US.
“Demographically we are unique… 50% of our population is across three cities. We have tight urban densities in those cities and we have very little opportunities for employment outside the capital cities.”
 
 
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Demographia figures 'flawed' but Australian cities unaffordable: RP Data's Tim Lawless

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Sydney and Melbourne are significantly more affordable than US-based research organisation Demographia claims, according to Property Observer calculations based on the latest available official ABS data.
In its eighth annual global housing affordability report, Demographia ranks Sydney as the third most unaffordable city in the world with house prices 9.2 times higher than the median household income and Melbourne sixth most unaffordable with a median multiple of 8.4.
However, the most recent ABS estimates of median household income and median house prices (respectively, the Household Wealth and Wealth Distribution report for 2009-10 released in October 2011 and the September quarter House Price Index released in November 2011) suggests quite different results.
Using the ABS figures, Sydney has a median multiple of 7.4, which means it drops down the list of most unaffordable locations from third (according to Demographia behind Hong Kong and Vancouver) to equal 10th with the UK’s Plymouth and Devon region.
Using the same ABS data, Melbourne’s median multiple falling from 8.4 to 6.5, with its ranking falling from six to joint 24th most unaffordable city alongside Telford and Shropshire in the UK.
<table style="width: 450px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="96" valign="top">
 
</td>
<td width="266" colspan="3" valign="top">
ABS figures
</td>
<td width="254" colspan="3" valign="top">
Demographia figures
</td>
</tr>
<tr>
<td width="96" valign="top">
 
</td>
<td width="91" valign="top">
Median house-hold income
</td>
<td width="91" valign="top">
Median house price
</td>
<td width="84" valign="top">
Median multiple
</td>
<td width="82" valign="top">
Median house-hold income
</td>
<td width="93" valign="top">
Median house price
</td>
<td width="80" valign="top">
Median multiple
</td>
</tr>
<tr>
<td width="96" valign="top">
Sydney
</td>
<td width="91" valign="top">
$77,500
</td>
<td width="91" valign="top">
$575,000
</td>
<td width="84" valign="top">
7.4
</td>
<td width="82" valign="top">
$69,400
</td>
<td width="93" valign="top">
$637,600
</td>
<td width="80" valign="top">
9.2
</td>
</tr>
<tr>
<td width="96" valign="top">
Melbourne
</td>
<td width="91" valign="top">
$74,000
</td>
<td width="91" valign="top">
$484,000
</td>
<td width="84" valign="top">
6.5
</td>
<td width="82" valign="top">
$67,700
</td>
<td width="93" valign="top">
$567,000
</td>
<td width="80" valign="top">
8.4
</td>
</tr>
<tr>
<td width="96" valign="top">
Brisbane
</td>
<td width="91" valign="top">
$79,700
</td>
<td width="91" valign="top">
$450,000
</td>
<td width="84" valign="top">
5.6
</td>
<td width="82" valign="top">
$71,500
</td>
<td width="93" valign="top">
$427,500
</td>
<td width="80" valign="top">
6.0
</td>
</tr>
<tr>
<td width="96" valign="top">
Adelaide
</td>
<td width="91" valign="top">
$65,500
</td>
<td width="91" valign="top">
$402,000
</td>
<td width="84" valign="top">
6.2
</td>
<td width="82" valign="top">
$57,300
</td>
<td width="93" valign="top">
$385,000
</td>
<td width="80" valign="top">
6.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Perth
</td>
<td width="91" valign="top">
$76,300
</td>
<td width="91" valign="top">
$500,000
</td>
<td width="84" valign="top">
6.6
</td>
<td width="82" valign="top">
$78,900
</td>
<td width="93" valign="top">
$450,000
</td>
<td width="80" valign="top">
5.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Darwin
</td>
<td width="91" valign="top">
$95,500
</td>
<td width="91" valign="top">
$510,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$82,500
</td>
<td width="93" valign="top">
$507,250
</td>
<td width="80" valign="top">
6.1
</td>
</tr>
<tr>
<td width="96" valign="top">
Hobart
</td>
<td width="91" valign="top">
$58,240
</td>
<td width="91" valign="top">
$339,000
</td>
<td width="84" valign="top">
5.8
</td>
<td width="82" valign="top">
$58,900
</td>
<td width="93" valign="top">
$345,000
</td>
<td width="80" valign="top">
5.9
</td>
</tr>
<tr>
<td width="96" valign="top">
Canberra
</td>
<td width="91" valign="top">
$104,400
</td>
<td width="91" valign="top">
$538,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$105,100
</td>
<td width="93" valign="top">
$513,000
</td>
<td width="80" valign="top">
4.9
</td>
</tr>
</tbody></table>
Source: ABS data, Demographia
Not all cities become more affordable using the ABS figures – Perth’s median multiple goes from 5.7 to 6.6 because the official ABS figures put the median Perth house price at $500,000 while Demographia says it is $450,000.
<img src="/images/stories/medianmultiplechart.jpg" width="470">
Wendell Cox, co-founder of Demographia, tells Property Observer median household income data differences arise because it uses a different Australian Bureau of Statistics (ABS) database while house prices come from real estate industry sources.
“Our median household income estimates start with a base of the ABS 2006 census data for the corresponding capital cities (statistical divisions) as well as the other areas reported upon. These figures are then adjusted based upon the change in earnings per person (using ABS data),” Cox says.
“There are differences between the income data from the census and the Household Wealth and Wealth Distribution report data. For example, the 2005-6 report had a median household income for Sydney approximately 9% higher than the median household income as reported by the 2006 census,” he says.
“Our first choice for estimating median household income data is census data, where it is available (such as Australia, Canada, New Zealand and the United States) because of its virtual universality (more than 7 million households nationwide). The 2009-10 Household Wealth and Wealth Distribution data is from a national sample of 18,000 households (2,245 in Sydney).
“We do not question the Household Wealth and Wealth Distribution report, but consider the census data more appropriate for the comparisons in the Survey. We anticipate updated median household income data from the 2011 census and plan on using that as a base next year.
“The median house prices for the capital cities are from the Real Estate Institute (REIA and state affiliates),” he says.
Demographia as its Australian research sources the following: AMP Banking (Australia), ABS, Australian Property Monitors, Housing Industry Association, Real Estate Institute of Australia and its state institutes, RBA, Residential Property Council (Division of the Property Council of Australia) RP Data (realestate.com.au), and the Urban Development Institute of Australia.
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Sydney and Melbourne more affordable than Demographia suggests

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The regional Victorian cities of Mildura and Shepparton rank as the most affordable Australian housing markets out of 32 major and minor housing markets as rated by US-based research group Demographia.
Canberra is the most affordable capital city market due to high civil servant wages. Sydney, with a median house price of $637,600 and median wages of just $69,400, is the least affordable.
The full list is:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="103" valign="top">
National rank
</td>
<td width="141" valign="top">
Market
</td>
<td width="65" valign="top">
Median multiple
</td>
<td width="103" valign="top">
Median price
</td>
<td width="103" valign="top">
Median household income
</td>
</tr>
<tr>
<td width="103" valign="top">
1
</td>
<td width="141" valign="top">
Mildura
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$207,000
</td>
<td width="103" valign="top">
$49,300
</td>
</tr>
<tr>
<td width="103" valign="top">
2
</td>
<td width="141" valign="top">
Shepparton
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$236,000
</td>
<td width="103" valign="top">
$55,600
</td>
</tr>
<tr>
<td width="103" valign="top">
3
</td>
<td width="141" valign="top">
Launceston
</td>
<td width="65" valign="top">
4.5
</td>
<td width="103" valign="top">
$272,300
</td>
<td width="103" valign="top">
$60,900
</td>
</tr>
<tr>
<td width="103" valign="top">
4
</td>
<td width="141" valign="top">
Bunbury
</td>
<td width="65" valign="top">
4.6
</td>
<td width="103" valign="top">
$362,500
</td>
<td width="103" valign="top">
$78,600
</td>
</tr>
<tr>
<td width="103" valign="top">
5
</td>
<td width="141" valign="top">
Toowoomba
</td>
<td width="65" valign="top">
4.7
</td>
<td width="103" valign="top">
$275,000
</td>
<td width="103" valign="top">
$58,400
</td>
</tr>
<tr>
<td width="103" valign="top">
6
</td>
<td width="141" valign="top">
Albury-Wodonga
</td>
<td width="65" valign="top">
4.8
</td>
<td width="103" valign="top">
$274,000
</td>
<td width="103" valign="top">
$57,200
</td>
</tr>
<tr>
<td width="103" valign="top">
7
</td>
<td width="141" valign="top">
Canberra
</td>
<td width="65" valign="top">
4.9
</td>
<td width="103" valign="top">
$513,000
</td>
<td width="103" valign="top">
$105,100
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Rockingham
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$312,000
</td>
<td width="103" valign="top">
$61,600
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Townsville
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$358,000
</td>
<td width="103" valign="top">
$70,500
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Cairns
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$350,500
</td>
<td width="103" valign="top">
$67,400
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Devonport-Burnie
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$257,00
</td>
<td width="103" valign="top">
$49,200
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Wagga Wagga
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$56,300
</td>
</tr>
<tr>
<td width="103" valign="top">
13
</td>
<td width="141" valign="top">
Tamworth
</td>
<td width="65" valign="top">
5.3
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$48,600
</td>
</tr>
<tr>
<td width="103" valign="top">
14
</td>
<td width="141" valign="top">
Bendigo
</td>
<td width="65" valign="top">
5.4
</td>
<td width="103" valign="top">
$277,500
</td>
<td width="103" valign="top">
$51,700
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Ballarat
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$285,000
</td>
<td width="103" valign="top">
$52,200
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Alice Springs
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$440,000
</td>
<td width="103" valign="top">
$79,600
</td>
</tr>
<tr>
<td width="103" valign="top">
17
</td>
<td width="141" valign="top">
Mackay
</td>
<td width="65" valign="top">
5.6
</td>
<td width="103" valign="top">
$410,000
</td>
<td width="103" valign="top">
$73,700
</td>
</tr>
<tr>
<td width="103" valign="top">
18
</td>
<td width="141" valign="top">
Perth
</td>
<td width="65" valign="top">
5.7
</td>
<td width="103" valign="top">
$450,000
</td>
<td width="103" valign="top">
$78,900
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Mandurah
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$367,300
</td>
<td width="103" valign="top">
$62,700
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Hobart
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$345,000
</td>
<td width="103" valign="top">
$58,900
</td>
</tr>
<tr>
<td width="103" valign="top">
21
</td>
<td width="141" valign="top">
Brisbane
</td>
<td width="65" valign="top">
6.0
</td>
<td width="103" valign="top">
$427,500
</td>
<td width="103" valign="top">
$71,500
</td>
</tr>
<tr>
<td width="103" valign="top">
22
</td>
<td width="141" valign="top">
Darwin
</td>
<td width="65" valign="top">
6.1
</td>
<td width="103" valign="top">
$507,250
</td>
<td width="103" valign="top">
$82,500
</td>
</tr>
<tr>
<td width="103" valign="top">
23
</td>
<td width="141" valign="top">
Bundaberg
</td>
<td width="65" valign="top">
6.2
</td>
<td width="103" valign="top">
$270,000
</td>
<td width="103" valign="top">
$43,600
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Newcastle-Maitland
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$365,000
</td>
<td width="103" valign="top">
$54,300
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Adelaide
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$385,000
</td>
<td width="103" valign="top">
$57,300
</td>
</tr>
<tr>
<td width="103" valign="top">
26
</td>
<td width="141" valign="top">
Wollongong
</td>
<td width="65" valign="top">
6.9
</td>
<td width="103" valign="top">
$403,000
</td>
<td width="103" valign="top">
$58,200
</td>
</tr>
<tr>
<td width="103" valign="top">
27
</td>
<td width="141" valign="top">
Geelong
</td>
<td width="65" valign="top">
7.1
</td>
<td width="103" valign="top">
$390,000
</td>
<td width="103" valign="top">
$55,300
</td>
</tr>
<tr>
<td width="103" valign="top">
28
</td>
<td width="141" valign="top">
Sunshine Coast
</td>
<td width="65" valign="top">
7.5
</td>
<td width="103" valign="top">
$430,000
</td>
<td width="103" valign="top">
$57,000
</td>
</tr>
<tr>
<td width="103" valign="top">
29
</td>
<td width="141" valign="top">
Gold Coast
</td>
<td width="65" valign="top">
7.6
</td>
<td width="103" valign="top">
$470,000
</td>
<td width="103" valign="top">
$61,900
</td>
</tr>
<tr>
<td width="103" valign="top">
30
</td>
<td width="141" valign="top">
Coff’s Harbour
</td>
<td width="65" valign="top">
8.3
</td>
<td width="103" valign="top">
$354,000
</td>
<td width="103" valign="top">
$42,500
</td>
</tr>
<tr>
<td width="103" valign="top">
31
</td>
<td width="141" valign="top">
Melbourne
</td>
<td width="65" valign="top">
8.4
</td>
<td width="103" valign="top">
$567,000
</td>
<td width="103" valign="top">
$67,700
</td>
</tr>
<tr>
<td width="103" valign="top">
32
</td>
<td width="141" valign="top">
Sydney
</td>
<td width="65" valign="top">
9.2
</td>
<td width="103" valign="top">
$637,600
</td>
<td width="103" valign="top">
$69,400
</td>
</tr>
</tbody></table>
 Source: Demographia’s 8th Annual International Housing Affordability Survey
</body></html>

Mildura and Shepparton most affordable regional areas in Australia: Demographia

<html><body>
A Chinese developer is looking to acquire a nine-story Sydney office block as Asian funds continue to pour into prime CBD assets.
The unnamed developer is currently carrying out due diligence on for 333 Kent Street, owned by AMB Holdings. 
The building, which measures nearly 9,000 square metres and is fully leased by Central Queensland University until 2017, last traded for $41.5 million in August 2010. 
In recent survey carried out by the US-based Association of Foreign Investors in Real Estate (AFIRE), Sydney ranked as the seventh most attractive city for offshore investors to buy commercial real estate.
The building is being marketed by Mark Wizel from CBRE, who has sold a number of development sites to Chinese groups, including 557 St Kilda Road in Melbourne, which was acquired by Setia Australia for $25 million. 
Over the past two years, Wizel has noticed a strong preference among Chinese buyers for development assets over passive investments, with the recent drop in the Australian dollar encouraging more offshore interest.
Wizel says Chinese developers have spent more than $180 million on development sites and plan to build about 3,500 apartments on these sites, the Australian Financial Review reported.
In addition, Chinese institutions are also seeking out more passive properties. Wizel expects them to start buying up office, retail and industrial assets and possibly apartment blocks in Sydney and Melbourne. 
Among these is Chinese conglomerate HNA Group, which has paid $117.7 million to acquire 1 York St from an unlisted fund run by Colonial First State Global Asset Management.
The purchase of the 22-storey B-grade office building is the first Australian investment for HNA Group, which plans to make further investments in Australia due to it have a stable economy, strong tenancy covenants and strong capital growth. 
DTZ acted on behalf of HNA while Colliers International represented Colonial.
For more on Asian investors in Australian property, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets" style="color: #000000; font-size: 15px;" target="_blank">Foreign Investment in Australian Property Markets</a>
 
</body></html>

Chinese developer set to buy Sydney office block as more Asian funds eye CBD properties

<html><body>
The majority of people still believe wind farms can reduce the land values of nearby properties despite no evidence that this is true, two new reports on the renewable energy source have found.
About 53% of the 1,000 people surveyed in November by renewable energy company Pacific Hydro believe wind farms negatively impact on nearby property prices, and 30% totally disagreed with this assertion.
However, a report on community acceptance of rural wind farms by the CSIRO’s Science into Society Group found that to date the building of wind farms has not “necessarily lead to negative impacts on neighbouring property prices”. 
The CSIRO report notes an assessment of 78 property sales around the Crookwell wind farm between 1990 and 2006, which found no reductions in property values as well as a 2009 assessment by the NSW Valuer-General of 45 property transactions near six wind farms, which found there was no reduction in sale price for properties in townships with views of the wind farm.
Forty of the 45 properties did not sell at reduced prices, and there was no evidence that the decline in prices for the remaining five properties was caused by the wind farms.
Negative media stories could play a role in the perception that wind farms have a negative impact on property prices. 
Analysis of 49 articles about wind farms carried out by CSIRO found more reasons for opposing wind farms were reported in the media than reasons to support them.
Among the benefits noted by rural landowners who have allowed wind farms to be built on their properties include using the extra rental income to remain on the farm  after retirement.
They also said wind farms helped “conserve biodiversity, and prevent subdividing of land; communities benefit from a local wind farm through increased local business, community funds and local government revenue”.
One landowner said having a wind farm on their property could provide “a drought-proofing income stream for my property... Few farmers in this region could survive without off-farm income”.
Another said wind farms helped fund land protection.
“[With] a bit of money to put turbines on my property – that won’t devalue my property – we’ll be able to run less animals and put less pressure on the land and look after it a whole lot better, get the biodiversity happening as it should – that’s a good outcome for me,” a survey participant said.
Detractors said while wind farm might not reduce the actual value of a particular property, it could limit the market of potential buyers, such as those seeking to subdivide.
The report also produced evidence that wind farms could attract tourism, but at the same time found they can conflict with other tourism features.
It cites the Victorian Civil and Administrative ruling approving the Cape Bridgewater wind farm that the wind farm would add a “positive element to the landscape interest, and could become a significant tourist attraction in the South Gippsland area”.
One respondent to the survey said: “[The wind farm] has increased tourism; it’s put them on the map a bit. You know, they sell T-shirts and bumper stickers of our wind farm.”
But another respondent said the wind farm defeated the purpose of having a B&amp;B in a picturesque rural landscape.
Other complaints were that wind farms blocked up country roads during construction and that they changed the landscape.
The Pacific Hydro survey found strong overall support for wind farm developments, with 83% of respondents supporting their construction and only 14% opposed. Support is strongest South Australia (90%), the state that relies on wind-generated energy for 17% of its power, the highest across Australia.
More than two-thirds (69%) of respondents to the survey nationwide support the building of wind farms over gas-fired power plants (25%) and new coal power plants (6%).
Commenting on the results, Lane Crockett, general manager for Pacific Hydro Australia, says there has been “significant debate and media coverage on the effects of wind farms on health, wildlife and amenity”.
“However, this recent poll shows that there continues to be overwhelming support for wind farms, and the recent negative messaging and constant attacks by some in the community does not appear to be altering public opinion too much”
“It is clear from these results that people in regional Australia are drawing their own conclusions on wind energy and they are that they understand the benefits and want to see more of it.
“The results of this poll should serve as a clear message to politicians and policy developers in all three states that most people like wind power.”
<img src="/images/stories/electricity.gif">
Construction is currently underway to build the 500-turbine Silverton wind farm project near Broken Hill, which will generate 1,000 megawatts of power, making it the largest wind farm in the Southern Hemisphere.
There are currently 52 wind farms operating across Australia generating about 1.5% of the country’s total electricity generation.
</body></html>

Most Australians erroneously believe wind farms will hurt property prices

<html><body>
The Reserve Bank is likely to cut interest rates a further three times this year, Yellow Brick Road executive chairman Mark Bouris has forecast.
Three rate cuts of 25 basis points each would take the cash rate to 3.5%, with the RBA’s monetary policy committee next scheduled to meet on February 7.
The last time the cash rate was at or below 3.5% was in February 2009, when the RBA cut the rate by 100 basis points from 4.25% to 3.25% to stimulate recovery following the GFC.
Most economists, including Westpac chief economist Bill Evans, <a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030">are forecasting two more rate cuts this year</a>.
But Bouris believes both global economic troubles and local factors will force the RBA’s hand further.
“I don’t like to spread negative sentiment, but a number of factors have been presenting themselves that suggest we’re in for a rough ride and that the RBA will have to look at cutting official interest rates in the first six months of the year,” he writes in the Sunday Telegraph.
“I am picking as many as three rates by the RBA before Christmas.”
On the global front, Bouris points to last week’s warning by the World Bank that the sovereign debt crisis in Europe could tip the world economy into a second GFC.
In the local banking sector, he notes predictions by investment bank UBS that 7,000 banking jobs will go due to the slowest growth in lending in Australia since WW II.
ANZ has already announced that it will lay off 900 staff, and today Toyota says it will cut 350 jobs from its Altona plant.
The other local data Bouris says is pointing to three rate cuts are a 2.6% drop in job ads in December, with 29,000 jobs lost (though the unemployment rate has held steady at 5.2%), stagnant housing finance up just 0.2% between October and November and little movement in property prices of late.
“Yet while we’re starting to see many indicators of a flat economy, flat housing, low credit growth, a drop in job advertisements, we also have reasonably high inflation, which suggests an overheating economy.
“The Reserve Bank’s web site says inflation is now at 3.5% well above the Reserve’s own guidelines of keeping it at 2% to 3%... the result of what they call the two-speed economy.”
This, he says, creates a “conundrum” for the RBA.
Bouris says the RBA would usually raise the cash rate to cool inflation, but says it now has a “broader mandate than simply controlling inflation”.
“The RBA’s three mandated roles are stability of the currency; maintenance of full employment; and the economy prosperity and welfare of the people of Australia.
“I don’t believe that with the current global and domestic weaknesses the cash rate can be kept at settings that control inflation while hurting the general welfare of the people,” he says.
</body></html>

Mark Bouris tips three rate cuts in 2012

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;

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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."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

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

Larry Schlesinger

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