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A modest increase in underlying inflation and the decision by the IMF to cut its global growth forecasts have increased the likelihood of the RBA cutting interest rates next month. 
Seasonally adjusted CPI rose 0.2% for the quarter – in line with economists’ estimates to be up 3% year-on-year. 
Fruit prices fell furthest during the quarter, down 13.4% due to a sharp drop in the cost of bananas, while costs also dropped for pharmaceuticals, vegetables and electronics. Domestic holiday travel, beer, telecommunications and rents all increased.
Underlying inflation increased by 0.55% (weighted mean of 0.5%, trimmed mean of 0.6%) in the December quarter to an annualised rate of 2.6%. Headline inflation for the quarter was 3.1% just outside the RBA’s inflation target range of between 2% and 3%, but below estimates of 3.3%.
RP Data’s Tim Lawless believes the inflation figure is good news for interest rates as does Channel Nine finance editor Ross Greenwood. 
“Headline inflation steady. Seasonally adjusted 0.2%. Lock in rate cut Tuesday week,” tweeted Greenwood. 
Financial commentator and TV host David Koch tweeted: “Inflation well under control so Reserve Bank should cut rates in 2 weeks.” 
However, economists are more divided on what the inflation numbers mean for interest rates. 
Rismark International and Yellow Brick Road director Christopher Joye says markets reacted to the inflation results with “big disappointment”. 
“The Aussie dollar jumped from US1.047 before the print to US1.052 after. More tellingly was the reaction of Australian government bond futures. The benchmark three-year government bond contract immediately plummeted 10 points from 96.74 to 96.64 as traders priced in higher long-term interest rates. The 30-day interbank futures contract also substantially reduced the probability of a rate cut in February, although it is still pricing in a better-than-evens chance,” he says. 
According to Joye, the February rate call is a line ball call, with the risk being “that the fourth-quarter [core inflation data] also gets revised up, and the numbers start looking a little ugly for Australia's central bank”.
Macquarie senior economist Brian Redican says the latest figures suggest inflation is “well contained” and will not surprise the RBA.
A rate cut, Redican says, will allow the RBA to “take out more insurance about the weakening global outlook; they can be more worried about those soft employment numbers”.
Rochford Capital currency director Derek Mumford says there might be a rate cut in February but it could be the end of the rate cutting cycle due to the increase in core inflation.
“That would suggest that in the short term interest rates can come down but perhaps the RBA will be less keen to cut rates sharply."
Ahead of the announcement Craig Michaels, senior economist at ANZ, said a 0.5% quarterly increase in underlying inflation would lend further support to its view “that the RBA has scope to further reduce rates, given the continued risk of European financial market dislocation, as well as a cyclical slowdown in Chinese growth and further labour market softness”.
The RBA board will also take note of the International Monetary Fund’s decision to cut its global growth forecast from 4% to 3.25% for 2012 principally due to a continued deterioration the Eurozone. This follows on from the World Bank cutting its economic growth forecasts to 2.5% in 2012 and 3.1% in 2013 – well below June 2011 forecasts of 3.6% growth for each year.
The IMF expects the eurozone to fall into a mild recession in 2012 after the crisis entered a “perilous new phase” toward the end of last year, affecting other parts of the world including the United States, emerging markets, and developing countries.
Olivier Blanchard, the IMF’s economic counsellor, says the global growth outlook is mediocre and could be worse. 
Speaking in Washington, Blanchard says “the world recovery, which was weak in the first place, is in danger of stalling”. 
“The epicentre of the danger is Europe, but the rest of the world is increasingly affected,” he says. 
Mortgage broker Loan Market says the RBA will need to reduce the official interest rate by at least 0.5 percentage points next month to pressure major banks into passing on reductions to customers.
Loan Market spokesman Paul Smith says the big banks have all indicated they might not be able to match a 25-basis-points cut to the cash rate should the central bank cut rates on February 7.
“The RBA will have to go hard with at least a 50-basis-point reduction at their next meeting and the latest official figures showing a lower-than-expected 3.1% annual inflation rate and prospects of rising unemployment support the need for a cut,” he says.
The major banks are coming under pressure from the IMF to raise their capital reserves as a buffer to a possible second GFC – a move that has been rebuffed by the Australian Bankers Association, which says it will force the banks to raise mortgage rates if implemented.
The ABA says the banks are already well capitalised and already implementing requirements under Basel III global banking reforms to hold higher levels of cash.
Holding higher levels of cash reserves would force the banks to ration credit and push up interest rates, the ABA has warned.
 
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lschlesinger-FZcF9M3vE6

Inflation result and global woes possibly put more pressure on RBA to cut rates

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Melbourne house prices increased 1.1% over the December 2011 quarter to a median of $538,000, the best result for all capital cities and the first quarterly rise since December 2010, according to Australian Property Monitors.
The December quarter result helped lift Melbourne to the position of second best-performing housing market in 2011 (behind Sydney) and the best-performing unit market.
Andrew Wilson, senior economist at APM, says the Melbourne improvement is being driven by increased buyer activity at the top end of the market while Sydney buying activity is coming from those at the bottom end.
Wilson says this result is significant “as it shows an end to a recent trend of falling prices over the past year, with the realistic potential for a sustained turnaround in some markets”.
“Looking forward, 2012 will provide mixed outcomes for housing markets, with some capital cities set to revive while others will remain flat.”
However, Monique Sasson Wakelin, managing director of Wakelin Property Advisory, disagrees that prestige buyers are pushing up Melbourne house prices.
“I disagree that it is being driven by the top-end prices. My view is the increase has been driven by upgraders with equity. It’s that group which have tended to anticipate the decline in interest rates,” she told the Australian Financial Review.
She maintains a cautious outlook, forecasting growth of 1% to 3% over 2012.
Recent December quarter figures put out by the <a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-metro-house-prices-5.2-cheaper-than-a-year-ago-reiv/2012012253107">Real Estate Institute of Victoria </a> show a 36% increase house prices in affluent Kew and 14% gain in Prahran, but also strong gains in less affluent suburbs West Footscray (up 6.2%).
The outlook appears less rosy for Melbourne’s property investor market, with the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-nation-s-strongest-and-weakest-capital-city-rental-markets-sqm/2012012453139">latest rental vacancy figures from SQM Research</a> showing the Melbourne vacancy rate rising to 4.4% in December with more than 16,000 properties now available for rent – up from 3.4% and 12,300 vacant rental properties in November 2011.
Melbourne’s vacancy rate is more than twice that of Sydney (2%) and significantly higher than the national vacancy rate of 2.5%.
The figures also coincide with data released today by ING showing that <a target="_blank" href="/news">Victorian mortgage confidence plummeted</a> during the December 2011 quarter.
Overall, house prices were unchanged over the December quarter according to APM, while unit prices declined marginally, down by 0.5%.
Hobart (0.5%) and Adelaide (0.5%) were the two other capital city markets to record price gains over the quarter, while Sydney house prices were unchanged at $637,000.
The worst-performing housing markets over the past three months were Brisbane and Perth, both recording a decline of 1.2%.
<img src="/images/stories/apmjan251.gif">
Nationally house prices were down 3.5% over the year led by Brisbane (down 7.5%), Darwin (7%) and Perth (5.2%). The best-performing housing market for the year was Sydney, with prices down a marginal 1.3%, followed by Melbourne, where house prices were down 3.1% in 2011.
Canberra was the strongest-performing market for units in the December 2011 quarter with a 2.9% increase in prices to a median of $414,000, followed by Perth (up 2.1%) and Darwin (1.1%)
Melbourne unit prices in Melbourne fell by 0.9% during the December 2011 quarter to just under $400,000 while Sydney unit prices softened by 1.1% to just under $450,000.
Nationally, units outperformed houses during 2011, with prices falling just 1.6%
Melbourne unit prices were virtually unchanged over 2011, down just 0.2% for the calendar year.
By far the worst-performing unit market was Hobart, with prices down nearly 16% for the year.
Of the big-city markets, Brisbane registered a 5.8% drop for the year, but a slight recovery in the December quarter with a 0.4% gain.
<img src="/images/stories/apmjan252.gif">
 
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Mixed messages in Melbourne's data as house prices increase slightly

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Victorian’s mortgage comfort level has plummeted in the last three months, according to the latest ING Direct Financial Wellbeing Index. 
Over the last three months of 2011, the state’s borrowers have gone from being the most comfortable with their level of mortgage debt to being the least comfortable.
Victorian borrowers were the most confident in the September 2011 survey, leading the nation in comfort with their mortgage (5.6 out of a possible 7), household income (4.19) and personal savings (3.58). 
However, in the December 2011 survey, Victorian borrowers scored 5.3 out of seven – the lowest comfort level of all states despite having a relatively small median mortgage debt of just under $187,000. 
The index measures personal comfort level on a scale from 1 (“very uncomfortable”) to 7 (“very comfortable”).
<img src="/images/stories/comforting.gif">
Source: ING
“Victorians are falling behind financially,” says ING. “The fourth quarter of 2011 saw a significant plunge in Victoria’s household financial wellbeing as the state’s index score dropped to 101.4 down from 110.1 in the third quarter. 
“The state also recorded the nation’s lowest comfort ratings across five key indicators including comfort with long term debt, savings, ability to pay bills, income and investments. 
“In 2011 only 27% of Victorians gained ground with their personal finances – 36% fell behind (59% of low-income earners) with 77% blaming the increasing cost of household essentials. 
“One in four (25%) expect their personal finances to deteriorate further in 2012. 
“Higher taxes/levies and rising living costs are the chief financial concerns for 32% of Victorians, followed by fears of job losses (20%),” the report highlights. 
Further suggesting a gloomier outlook, a higher proportion of Victorians (40%) expect the economy to worsen in 2012 compared to a national average of 35%. 
Conversely Victorians feel more comfortable about their level of savings (up to 3.83 from 3.58), suggesting as shift towards deleveraging. 
About 41% of Victorians are making extra mortgage repayments compared with 36% of borrowers in NSW and the ACT. 
In contrast, mortgage holders in NSW and in the ACT are most comfortable about managing their mortgage repayments and other long-term debts, with the state achieved the nation’s top score for financial wellbeing of 109.1. 
NSW and ACT borrowers scored 5.9 out of 7 on the mortgage debt component of the index. Borrowers from NSW and the ACT have a median mortgage debt of $264,000. 
Only 21% of NSW households saw their financial situation deteriorate in 2011, compared with 32% nationally. 
One in three (31%) NSW households expect the economy to deteriorate in 2012, but 78% see their personal finances improving or holding steady this year. 
Including all six measures of financial wellbeing (mortgages, credit cards, savings, investments, household income and ability to pay bills), the state’s wellbeing index has improved from 108 to 109.1, and NSW and Western Australia have the joint highest overall comfort level of 4.4. 
According to ING, Western Australian borrowers are making the most effort to deleverage, with more than half (55%) making extra mortgage repayments.  The state has the smallest average mortgage debt of $159,000. 
Overall, the survey found that almost two-thirds of households (61%) are comfortable with their home loans with 41% ahead with their mortgages – though is down slightly from 46% in the third quarter. 
Although 35% of Australians expect the economy to deteriorate in 2012, only 22% of households believe their personal financial wellbeing will decline. 
The majority (75%) expect their financial position to improve or remain unchanged. 
One in four (27%) households hold less than $50,000 worth of assets, including equity in the family home (excludes superannuation savings). Over half (52%) have no investments at all outside their home and almost the same proportion (50%) have less than $17,000 in personal savings.
 
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Victorian mortgage confidence plummets: ING 

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The appeal of line-of-credit mortgages – traditionally popular among property investors – has declined to levels last seen May 1998, according to the latest ABS Housing Finance figures.
The November figures show that only 3.7% of home loans were revolving line of credit, with just 1,900 of these loans taken out over the month.
Line-of-credit loans peaked at 16.1% of all loans in June 2002, when more than 8,300 of these loans were taken up by borrowers.
The popularity of the products, which act like giant credit cards or bank overdrafts, dropped below 10% of all loans in 2006.
Their recent decline has matched Australian households increasing their savings and deleveraged their balance sheets in the response to the GFC and in the face of more economic uncertainty.
 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="214" valign="top">
 
</td>
<td width="219" valign="top">
Line of credit mortgages as % of total housing finance
</td>
<td width="183" valign="top">
Average loan size
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2002
</td>
<td width="219" valign="top">
12.4%
</td>
<td width="183" valign="top">
$155,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2006
</td>
<td width="219" valign="top">
8.2%
</td>
<td width="183" valign="top">
$195,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2007
</td>
<td width="219" valign="top">
5.8%
</td>
<td width="183" valign="top">
$253,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2008
</td>
<td width="219" valign="top">
6.5%
</td>
<td width="183" valign="top">
$301.000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2009
</td>
<td width="219" valign="top">
5.6%
</td>
<td width="183" valign="top">
$288,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2010
</td>
<td width="219" valign="top">
5.1%
</td>
<td width="183" valign="top">
$335,000
</td>
</tr>
<tr>
<td width="214" valign="top">
November 2011
</td>
<td width="219" valign="top">
3.7%
</td>
<td width="183" valign="top">
$318,000
</td>
</tr>
</tbody></table>
Source: ABS
“It’s certainly speaks to the shift in both the market and consumer behaviour to see the reduction of revolving lines of credit in the home loan market,” says Dean Rushton, chief operating officer of mortgage broker Loan Market.
Rushton says their popularity has declined because borrowers are choosing cheaper products that offer redraw facilities or offset accounts should they need extra money. 
“These products are often free of any additional fees,” he says.
“Line-of-credit home loans for residential finance that were more in favour during the early to mid-2000s appear to be headed for the mortgage museum as a result of the GFC,” he says.
“However, the key point here is consumers want to have the one-two punch of having access to additional funds paid and the forced discipline of reducing their loan amount.”
Rushton says the key disadvantage for a revolving credit line is that interest rates were generally 10 to 20 basis points higher.
He says with offset and redraw features borrowers can access an amount up to the amortised rate of their mortgage.
“This type of transaction ensures that borrows do not fall behind on their original repayment schedule,” he says.
Line-of-credit mortgages work in the same way as an overdraft account – they provide an approved limit of borrowings that investors can use piecemeal or all at once, depending on their needs.
Interest is accrued on how much of the loan is used and unlike other mortgages it does not have a fixed loan term.
The products have been popular among investors because they allow them to tap into the equity already built up in their portfolios and use this to fund further property purchases or renovations.
Line-of-credit loans were introduced into Australia in the early 1990s but only started growing in popularity in 1999.
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Investors shun line-of-credit loans in favour of cheaper alternatives

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Chinese buyers accounted for nearly a third of foreign purchases of Queensland residential real estate during the 2010-11 financial year, with record amounts spent on Gold Coast property, according to research compiled by Colliers International. 
The Gold Coast was China’s preferred local authority during the 2010-11 year, and they spent a total of $66.9 million (40% of the total amount spent by foreigners) in the area, followed by Brisbane with $30.4 million and Logan with $4.8 million. 
Gold Coast figures for 2010-11 were 128% higher than the previous year, when Chinese buyers spent $29.3 million – the largest amount spent by Chinese buyers in a single year since Colliers began to monitor foreign investment figures.
<img src="/images/stories/foreigninvestment.gif">
Tony Holland, Colliers International Gold Coast director of project marketing, says the Gold Coast is a favoured destination for Chinese and other foreigners because of its year-round sunshine and attractive lifestyle opportunities. 
Furthermore, with two expanding international airports – Brisbane and the Gold Coast – close by, it is easily accessible both domestically and internationally. 
In December 2011, China Southern airline announced it would launch up to four direct flights a week between Coolangatta and the Chinese city hub of Guangzhou by 2015. 
“Within five years China is expected to eclipse New Zealand as the Gold Coast’s number-one tourism provider,” Holland says. 
“With continued strong tourism, the popularity of the Gold Coast with foreign buyers is encouraging and, with the current stock of new apartments now down to a 10-year low, these figures should provide developers with confidence to commence new projects over the coming 12 months,” he says. 
While overall foreign investment in the Queensland has declined since the GFC (the 2007-2008 financial year), Chinese buyers have not been deterred, spending almost $107 million in the state’s property market over the year to June 2011, a 50% increase on the $71.5 million they spent in the previous financial year.
Colliers records 203 transactions by Chinese nationals in 2010-11 financial year – with $106.8 million the largest amount spent in a single year by Chinese buyers, notes Lynda Campbell, Colliers International Gold Coast research manager. 
Although the numbers are slightly down on last year, China buyers also dominated spending by foreigners across Brisbane, with a total of $30.4 million spent over 61 transactions. The year 2010-11 was the fourth consecutive year that Chinese buyers were the most prolific foreign purchasers of Brisbane property. 
More than three-quarters (77%) of property transactions by Chinese nationals in Queensland were for investment purposes, while the remaining 23% were for owner-occupation. 
During the past 10 years, China has spent a total of $366.3 million on Queensland property.
 
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Chinese appetite for Gold Coast property soars to record highs in 2010-11: Colliers

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TV personality and property pundit David Koch and his wife, Libby, have come under fire from the both the Sunshine Coast mayor and the Real Estate Institute of Queensland  for describing the local property market as “catastrophic”.
The Koches <a href="https://www.propertyobserver.com.au/residential/kochie-to-property-investors-avoid-catastrophic-gold-and-sunshine-coasts/2012011953058">warned property investors to avoid both the Sunshine Coast and Gold Coast</a> as part of their forecasts for the year ahead.
Sunshine Coast Regional Council mayor Bob Abbot says what the local market needs is people to “settle and live here, not investors”.
"I like to think we are about mums, dads and their kids and being a place they want to stay and live," he told the Sunshine Coast Daily.
Lloyd Edwards, chairman of the Real Estate institute of Queensland coast branch and local Ray White agent, points out that some of the big-name Sunshine Coast residents include Therese Rein, prominent lawyer and the wife of former prime minister Kevin Rudd; British billionaire Richard Branson and leading Australian playwright David Williamson.
He also says recent building approvals could indicate a turnaround.
According to Sunshine Coast Regional Council figures, building approval figures rose 25% in November, while ABS figures show an 18% improvement.
“These are hard facts, reality – not just an opinion,” he says.
November ABS building approval figures show a 6.6% overall increase for Queensland with private sector house approvals up 10.8%.
Master Builders director of housing policy Paul Bidwell described the improvement as “positive news” but highlighted that the figures are just for one month, with the level of building activity across the state “generally remaining well below last year’s levels, which is why we have welcomed the extension to the state government’s building boost grant”.
“We’re anticipating conditions in the early part of 2012 will remain fairly tough, but providing the European economy holds steady and as more work comes into the market as a result of the extended stimulus, we are confident the worst is behind us and the recovery will really take hold during 2012,” Bidwell says.
 
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Sunshine Coast mayor slams Kochie for 'catastrophic' warning to property investors

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Housing affordability has improved marginally in Australia over the past year, according to the Eighth Annual Demographia International Housing Affordability Survey, but still remains “severely unaffordable” due to restrictive land release policies on city fringes.
Australia's national unaffordability ratio declined from a median multiple of 6.1 (median house price compared to median household income) in 2010 to the still “severely unaffordable” ratio of 5.6 in 2011.  The analysis was done by the self-titled “anti-urban research planning group” of 325 metropolitan markets in Australia, Canada, Hong Kong, Ireland, New Zealand, the UK and the US.
According to Demographia, to ensure housing bubbles are not triggered, housing prices should not exceed three times gross annual household incomes.
“To allow this to occur, new starter housing … must be allowed to be provided on the urban fringes at 2.5 times the gross annual median household income of that urban market,” it says.
Click image to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/afford.gif"><img src="/images/affordthumb.gif"></a>
Of the 32 Australian housing markets rated by Demographia, none rate as affordable (a median multiple of 3 or less) or moderately affordable (median multiple of 3.1 to 4).
Seven rate as seriously unaffordable (4.1 to 5) with 25 rating as severely unaffordable (more than 5.1).
The report is typically controversial, <a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-affordability-in-australia-is-not-as-dire-as-you-think/2011121352823">with local housing pundits claiming its measures of affordability are inaccurate</a>.
However, Hugh Pavletich, who co-author’s the report with Wendell Cox, rejects the criticism and says the survey methodology is a measure recommended by the United Nations and World Bank Urban Indicators Programs and employed by Harvard University's joint centre for housing.
Sydney remains Australia’s most unaffordable housing market with a median multiple of 9.7. It has fallen below Vancouver and is now ranked the third most unaffordable major housing market in the world, with Melbourne ranking fourth. The list is topped by Hong Kong, with a “staggering” median multiple of 12.6.
Adelaide had a median multiple of 6.7, despite being the major market with the lowest demand in the nation. Brisbane (6) and Perth (5.7) are also well above the severely unaffordable threshold.
“Like Sydney, each of these markets has more restrictive land use regulation and has seen its housing affordability deteriorate markedly,” the report says.
“Housing affordability has improved substantially in Perth since 2006, when the median multiple was eight. However, Perth remains severely unaffordable.”
Each of Australia's major markets, with the exception of Sydney had housing affordability within the median multiple norm of 3 during the 1980s.
The five most unaffordable major housing markets (population of more than 1 million)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
Rank
</td>
<td width="205" valign="top">
City
</td>
<td width="205" valign="top">
Median multiple
</td>
</tr>
<tr>
<td width="205">
1st
</td>
<td width="205">
Hong Kong
</td>
<td width="205">
12.6
</td>
</tr>
<tr>
<td width="205">
2nd
</td>
<td width="205">
Vancouver
</td>
<td width="205">
10.6
</td>
</tr>
<tr>
<td width="205">
3rd
</td>
<td width="205">
Sydney
</td>
<td width="205">
9.2
</td>
</tr>
<tr>
<td width="205">
4th
</td>
<td width="205">
Melbourne
</td>
<td width="205">
8.4
</td>
</tr>
<tr>
<td width="205">
5th
</td>
<td width="205">
Plymouth and Devon (UK)
</td>
<td width="205">
7.4
</td>
</tr>
</tbody></table>
Source: 8th Annual Demographia International Housing Affordability Survey
The seven most affordable markets are all regional locations, apart from one, the federal capital Canberra, which has a multiple median of 4.9.
The six other markets are Mildura and Shepparton in Victoria (4.2), Launceston in Tasmania (4.5), Bunbury in Western Australia at 4.6, Toowoomba in Queensland (4.7) and Albury-Wodonga on the NSW-Victoria border with a median multiple of 4.9.
Outside the major metropolitan areas, the most expensive markets are Coff's Harbour (NSW) at 8.4, the Gold Coast (Queensland) at 7.6, the Sunshine Coast (Queensland) at 7.5 and Geelong (Victoria) at 7.1.
The US-based organisation run by Wendell Cox, blames housing affordability problems in Australia, New Zealand, the UK and Ireland on restrictive land release policies
“Australia with its abundant land supply has the most pervasive housing affordability problem In recent decades, housing affordability has deteriorated materially across Australia, Ireland, New Zealand and the United Kingdom, virtually without regard to market size or demand,” says Demographia.
“The causes of massively deteriorating housing affordability are not a mystery. They inevitably result from more restrictive land use regulations adopted by governments with insufficient attention to economic fundamentals.
“This occurs even as virtually all governments profess housing affordability as an important public objective. Where land is rationed (by more restrictive land use regulation), house prices will rise. Thus, where house prices have increased substantially, they have been preceded by more restrictive land use regulation.”
All of the affordable major markets are in the US, while three of the moderately unaffordable markets are in Canada. One of the moderately unaffordable markets is in Ireland, with the other 16 in the United States.
The most affordable major market is Detroit, with a multiple of 1.6.  Atlanta is the second most affordable, with a multiple of 1.9.
The most affordable major metropolitan markets outside the US is Dublin, with a multiple of 3.4, and Edmonton in Canada, with a multiple of 3.5.
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Sydney and Melbourne among the five least affordable cities in the world: Demographia

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Despite a modest recovery in the final quarter of 2011, the median house price in metropolitan Melbourne is down $30,000 compared with a year ago, according to the Real Estate Institute of Victoria.
The institute puts the median house price at $550,000, a minor increase of 1.9% from the revised September quarter median of $540,000, but 5.2% down on a median of $580,000 a year ago. 
The price decline equates to Melbourne metropolitan houses losing about $80 a day in value over the past year.
One of the best-performing suburbs of the quarter and the year was Prahran, with house prices up 14% for the quarter to $997,500 and 10.8% for the year. A year ago a house in Prahran cost $900,000, and the median in December 2011 is $997,500.
Affluent Kew recorded quarterly price growth of 36% with the median house price increasing from $1.18 million to $1.6 million (with about 60 Kew houses sold over the quarter, according to realestate.com.au) but does not feature on the <a target="_blank" href="https://www.propertyobserver.com.au/residential/top-10-suburbs-with-the-highest-annual-growth-in-2011in-victoria-reiv/2012012253105">list of the best-performing suburbs of the year</a>, indicating some record sales over the final quarter skewed the results.
The far-outer Melbourne suburb of Mornington (an hour’s drive from the CBD) recorded 10.9% increase in house prices over the quarter, with house prices increasing $50,000 to $510,000. Quarterly house price increases of around 10% or more were also recorded for Kensington (12.4% up to $725,000) and Port Melbourne (up 9.7% to $911,000).
Balwyn North (7.9%), Blackburn (7.4%), Wantirna South (6.9%), West Footscray (6.2%) and Mount Waverley (4.8%) all recorded strong growth over the quarter.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
 
</td>
<td>
Suburb
</td>
<td>
Dec 2011 median
</td>
<td>
Sept 2011 median
</td>
<td>
Quarterly change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
<a target="_blank" href="/news">Kew</a>
</td>
<td>
$1,600,000
</td>
<td>
$1,175,000
</td>
<td>
36.2%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
<a target="_blank" href="/news">Prahran</a>
</td>
<td>
$997,500
</td>
<td>
$875,000
</td>
<td>
14.0%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
<a target="_blank" href="/news">Kensington</a>
</td>
<td>
$725,000
</td>
<td>
$645,000
</td>
<td>
12.4%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
<a target="_blank" href="/news">Mornington</a>
</td>
<td>
$510,000
</td>
<td>
$460,000
</td>
<td>
10.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
<a target="_blank" href="/news">Port Melbourne</a>
</td>
<td>
$911,000
</td>
<td>
$830,250
</td>
<td>
9.7%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
<a target="_blank" href="/news">Balwyn North</a>
</td>
<td>
$1,154,500
</td>
<td>
$1,070,000
</td>
<td>
7.9%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
<a target="_blank" href="/news">Blackburn</a>
</td>
<td>
$768,000
</td>
<td>
$715,000
</td>
<td>
7.4%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
<a target="_blank" href="/news">Wantirna South</a>
</td>
<td>
$556,000
</td>
<td>
$520,000
</td>
<td>
6.9%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
<a target="_blank" href="/news">West Footscray</a>
</td>
<td>
$515,000
</td>
<td>
$485,000
</td>
<td>
6.2%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
<a target="_blank" href="/news">Mount Waverley</a>
</td>
<td>
$740,000
</td>
<td>
$706,000
</td>
<td>
4.8%
</td>
</tr>
</tbody></table>
Unit prices are down 4.2% for the year, with the median unit price falling from $475,000 to $450,000. Over the December 2011 quarter, units managed growth of 1.1%.
The strongest demand for units was recorded in North Melbourne, Armadale and West Footscray. 
Regional houses have delivered investors a better return over the past year, falling by just 0.8%. The median regional house price now stands at $312,500 compared with $315,000 a year ago. 
Of the three main regional centres, demand was highest in Bendigo, where the median house price increased by 6.3% to $294,000. In Ballarat the increase was 3.6% to $290,000 and in Geelong there was a drop of 2.3% to $380,000. 
“The REIV does not predict any significant change in the market during the March quarter as it is generally the quarter with the least activity, however we are starting to see signs that the market may have bottomed in 2011, and, if there are improvements in economic conditions, we may see an improvement in transaction activity from the second quarter of this year,” says REIV chief executive Enzo Raimondo. 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="88" valign="top">
 
</td>
<td width="176" valign="top">
Melbourne house prices
</td>
<td width="176" valign="top">
Melbourne unit prices
</td>
<td width="176" valign="top">
Melbourne regional houses
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 11
</td>
<td width="176">
$550,000
</td>
<td width="176">
$455,000
</td>
<td width="176">
$312,500
</td>
</tr>
<tr>
<td width="88" valign="top">
Sep 11
</td>
<td width="176">
$540,000
</td>
<td width="176">
$450,000
</td>
<td width="176">
$310,000
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 10
</td>
<td width="176">
$580,000
</td>
<td width="176">
$475,000
</td>
<td width="176">
$315,000
</td>
</tr>
</tbody></table>
Source: REIV 
Commenting on the December quarter results, Raimondo says that demand in the local residential market improved marginally from the previous quarter, as did housing affordability, due to the two interest rate cuts; however, transaction numbers were significantly lower than for the same time the previous year. 
“REIV data confirmed that, overall, the median house price has not changed over the last six months; the key factors driving the current market are a combination of lower consumer confidence, a slowing state economy and an increase in supply,” he says. 
“Feedback from REIV members during the December quarter was that buyers are not as willing to buy and sellers are not as anxious to sell as they hold out for an improvement in conditions. 
“As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions.”
 
 
</body></html>

Melbourne metro house prices 5.2% cheaper than a year ago: REIV

<html><body>
Administrators of Refund Home Loans have reportedly issued two draft contracts for the sale of the business, with a third contract expected to be drafted soon.
A letter from Refund Home Loans administrator SV Partners has been sent to franchisees advising them of the draft contracts, said industry website Australian Brokernews.
SV Partners is currently awaiting response on any amendments required to the contracts and has told creditors it is in their best interests for the negotiations to run their full course.
"Whilst the terms of all three offers are different, we believe that all three offers will provide creditors and franchisees with a better result than if the company is wound up and a sale does not occur," the letter says.
Refund Home Loans, which was started by Wayne Ormond, was placed in administration in October last year and <a href="https://www.propertyobserver.com.au/showcase/wayne-ormond-s-refund-home-loans-owes-creditors-millions-as-relations-with-franchisees-turn-sour/2011111652384" target="_blank">owes 119 creditors a combined $9.7 million.</a>
Creditors include Refund Home Loans franchisees, law firm DLA Piper, mortgage broking training provider Intellitrain and WA-based Ourimbah Holdings Pty Ltd.
A sale before Christmas had been targeted.
Before its collapse Refund was valued by Deloitte at between $40 million and $50 million, but the company struggled to obtain additional lines of funding after expanding into real estate services and financial planning and was forced into administration by its lender.
Ormond said in December that while he had managed to raise $1.5 million from two investors before the collapse, he could not raise enough money after the share market collapsed and the business environment turned sour.
</body></html>

Three offers on the table to buy Refund Home Loans

<html><body>
The ACCC is investigating whether it is in the best interest of consumers for some mortgage broking groups and lenders to make it compulsory for their brokers to be members of industry body the Mortgage and Finance Association of Australia (MFAA).
Two of the industry’s biggest franchise groups, Aussie Home Loans and Mortgage Choice, require their brokers to be members of the MFAA rather than accept membership of rival industry body, the Finance Brokers Association of Australia (FBAA).
Membership of the MFAA is not a requirement of the National Consumer Credit Protection Act, the legislation introduced in 2010 that requires brokers to be licensed and sets out standards for conduct and compliance.
In 2008, before the introduction of compulsory licensing, the ACCC granted permission to Mortgage Choice, Aussie and others to enforce the requirement (known as third-line notifications) that their brokers be members of the MFAA.
However, it is now seeking industry comment and has written to about 70 industry participants including brokers, aggregators, banks and ASIC as part of its review of this decision.
In the letter written by the ACCC to industry stakeholders it says it could revoke these notifications at any time "if it determines that the conduct to which the notification relates no longer delivers a net benefit".
The FBAA claims to be an industry body run by brokers for brokers and says on its website that “all but one elected executive positions are held by practising finance brokers in their own right”.
It says enforcement of compulsory MFAA membership is anti-competitive.
“[These practices] restrict consumers’ ability to have the right of choice as to which broker they use and what lenders that broker is able to access,” said FBAA president Peter White in the organisation’s ­submission to the ACCC on the matter.
The MFAA has strong lender representation and has been accused in the past of having a strong leaning towards the major banks, counting the Commonwealth Bank and NAB as its “platinum industry partners”.
Mortgage Choice has said previously that it would defend its decision requiring compulsory membership. 
“While we appreciate MFAA membership is not a conditional requirement of NCCP, Mortgage Choice is committed to the MFAA and strongly believes in the need for an independent industry association,” the franchise group said last year.
A spokesperson told Property Observer today it was "waiting to hear from the ACCC regarding their decision".
 
</body></html>

ACCC reviewing compulsory mortgage broker industry body membership

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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