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?There is little chance of a housing market crash this year, says HSBC chief economist Paul Bloxham as part of his macro-economic outlook for 2012. 

Bloxham says there are three main reasons why prices won’t plummet: the majority of households can service their debt; the undersupply of housing is growing at a greater rate <a href="https://www.propertyobserver.com.au/demographics/australia-s-population-up-1.4-in-2010-11-as-migration-slows/2012011953093" target="_blank">than the decline in population growth</a>; and there is strong demand for housing close to major urban areas. 
Bloxham expects these three broad factors to underpin the housing sector and remains “unconcerned about the possibility of a large decline in housing prices this year”. 
Expanding on the first of these factors, Bloxham says that while aggregate household debt is high in Australia, “it is well-allocated to households that can afford to service it”.
<img src="/images/stories/bloxham1.gif">
“Around three-quarters of household debt in Australia is held by the top two income quintiles. These households also typically have significant equity built up in their properties and assets. 
“Indeed, a significant proportion of this debt is held against a second property, to take advantage of the mortgage deductibility on investment properties. 
“Around one-fifth of Australian households have a second dwelling,” he says, adding that the tax system favours these investment properties. 
“Around one-quarter of all household credit is for the purpose of holding an investment property. Indeed, when making international comparisons of household debt levels, this is a critical point to keep in mind.”
<img src="/images/stories/bloxham2.gif">
He also notes that the debt-to-income rate has been broadly steady for the past five years, and has been declining modestly over the past year.
“Despite the decline in housing prices last year, non-performing housing loans also remained a very small share of total loans and significantly lower than in other developed countries.”
On the second point of housing supply, Bloxham says construction of housing is still “well below the cumulative demand that exists”.
“Most industry estimates suggest a shortage of around 100,000 homes, which is over two-thirds of one year’s production. While population growth has slowed to be in line with growth in the number of dwellings, construction has yet to catch up with the demand overhang.”
<img src="/images/stories/bloxham3.gif">
Lastly, he says there are significant constraints in the supply of additional dwellings close to the urban centres, and thus within a reasonable distance to employment in the urban centres.
“For these ‘high-quality’ dwellings there is strong demand and limited supply. Supply is constrained by zoning regulations, a lack of willingness of local governments to allow further urban infill in the major cities, and the lack of quality transport infrastructure.
“Despite its artificial nature, this is still a constraint. Unless this constraint is lifted – which seems unlikely to occur rapidly – the supply of dwellings close to urban centres will remain low relative to demand, supporting prices,” he says.
Bloxham says the main risk to the housing market is a sharper increase in unemployment, which he says is the “typical trigger of rising loan arrears”.
But, he says, the RBA has a powerful tool for providing support for the housing market and employment. 
“While we expect the unemployment rate to rise further from here, we expect it to peak around the middle of the year, before falling as expected RBA rate cuts provide support for the economy.” 
Bloxham expects the trend of households increasing their savings and reducing their borrowings to continue in 2012, but says lower interest rates should put a floor under house prices. 
“While increased savings can often be seen as a bad thing for the economy, especially when everyone does it at once, in Australia’s case it has occurred just at the right time: that is, at a time when household income growth has been strong,” he says. 
Bloxham forecasts housing credit growth to remain subdued in 2012, with household consumption slowing in response to a further modest weakening in the labour market, “though this should be partly offset by lower interest rates”.
 
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Three reasons why there is no Australian housing price bubble: HSBC's Paul Bloxham

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Investment bank Morgan Stanley will pay US$1.1 billion (A$1.05 billion) to purchase the largest shopping centre in St Petersburg.
<img src="/images/stories/galleria.jpg">
The bank’s Morgan Stanley Real Estate Fund VII will purchase the Galleria Mall from Meridian Capital CIS Fund, a private investment fund backed by a group of Kazakh investors.
The transaction is due to be completed later this month.
<img src="/images/stories/galleria2.jpg">
Galleria cost US$380 million to build. It opened in November 2010 and has 250 stores occupying 93,000 square metres over five floors.
<img src="/images/stories/galleria3.jpg">
It includes a multi-screen movie theatre, a 27-lane bowling alley plus underground parking for 1,200 vehicles.
By comparison, Australia’s biggest shopping centre is the Chadstone Mall in south-east Melbourne, which is owned by Colonial First State. It has 126,000 square metres of gross lettable area and is valued at $1.53 billion.
 
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Morgan Stanley pays $1.05 billion for Russian shopping centre

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Channel Seven’s Sunrise host David Koch and his wife, Libby, have put the boot into the struggling Gold Coast and Sunshine Coast markets by warning property investors to steer well clear of these two coast locations.
As part of their 2012 outlook the Kochs note “the property catastrophe underway in places like the Sunshine and Gold coasts” and “slowly deflating residential property values”.
“Property is all about demand and supply. Those regions which went through a construction boom in recent years are currently suffering the most,” the Kochs say.
This is by no means the first time the Kochs have warned investors of the perils of buying in Queensland’s tourism heartland.
In October last year, Kochie blogged that on the Gold and Sunshine coasts the oversupply of high-rise apartments was “nothing short of devastating”, with possible flow-on effects for Brisbane.
“Brisbane could turn in to a property nightmare with its declines being accentuated by the crash in nearby Gold and Sunshine coasts, where there is a massive oversupply of stock,” he says.
“In both regions there is four to five years’ worth of stock on the market as massive apartment blocks sold off the plan have failed to settle. Even just across the border at Tweed Heads is suffering. It will be years before there is any sort of recovery.”
<img src="/images/stories/kochiechart.gif">
Chinese buyers clearly disagree with the Kochs at least when it comes to the Gold Coast – according to research by Colliers, they upped their investments in Gold Coast real estate by 128% in the last year, spending around $66 million.
According to research by Lynda Campbell from Colliers, there about 1,2oo new apartments for sale on the Gold Coast – the lowest level since 2004.
 
 
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Kochie to property investors: Avoid ‘catastrophic’ Gold and Sunshine coasts

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House price expectations improved markedly in January led by improvements in the resource-rich states of Western Australia and Queensland, according to the Westpac-Melbourne Institute Consumer House Price Expectations Index.
The index posted a strong rise in January, increasing 16.1 points from 9 in October to a current level 25.1 – the highest reading since April last year and the first gain since January 2010.
Despite this improvement in sentiment, less than half (47.6%) of consumers expect prices to be higher in 12 months, with 30% expecting no change and the remainder (22.5%) expecting further price declines.
<img src="/images/stories/expectations.gif">
Source: Westpac-Melbourne Institute 
On a state-by-state basis, Queensland recorded the biggest improvement in sentiment, with its index rising from -9.8 in October to 27 points in January. Nearly half of respondents expect Queensland house prices to increase in 2012. About 30% of respondents expect house prices to stay the same in Queensland.
The Western Australian index improved strongly from 10.1 points in October to 32.7 points in January.
Western Australians are the most optimistic about house prices rising and the only state where more than 50% of those surveyed expect prices to rise over 2012.
<img src="/images/stories/expectations2.gif">
Commenting on the January index result, Westpac senior economist Matthew Hassan says state trends were “striking”.
“All states recorded a rise in house price expectations, but by far the biggest gains were in the resource states.
“Expectations have swung 180 degrees in Queensland from price pessimists dominating in October to optimists now outnumbering pessimists by two to one in January.
“Expectations also jumped sharply in WA, which was the only state to record an outright majority expecting house price gains in the year ahead.
<img src="/images/stories/expectations3.gif">
Source: Westpac-Melbourne Institute
“Victorian consumers were much more subdued on the house price outlook, with one in four still expecting price declines in the year ahead,” Hassan says.
Hassan says the RBA's interest rate cuts in Nov and December appear to have “driven a significant shift in consumer house price expectations”.
“To date, the trajectory looks similar to that in 2008-09. However, there are some notable differences – the starting point for price expectations is firmer, the interest rate stimulus is less aggressive (mortgage rates fell more sharply and were much lower in 2008-09) and fiscal measures (first-home buyer incentives in particular) are providing less support.
“The improvement is much more lopsided as well with younger age-groups and those in resource states leading the way. This suggests we may also see an uneven improvement in housing markets in 2012.”
First-home buyers are the most optimistic about house prices among buyer types with, investors the least optimistic.
<img src="/images/stories/expectations4.gif"> 
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Queensland and WA lead improvement in house price sentiment in January: Westpac

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The Sydney unit market remained resilient in 2011, with prices rising 2.16% over the year to a median of $488,000. The New South Wales capital outperformed the national market, which fell 0.3% to a median $398,000, according to the latest Residex data. 
However, the pace of Sydney unit price growth slowed in the last six months of the year – at the end of June 2011, Sydney unit prices were growing at annualised rate of 4.4%. 
As with its <a href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062" target="_blank">housing market</a>, the decline in Melbourne’s unit prices accelerated significantly in the last half of 2011. 
According to Residex, Melbourne unit prices declined more than 5% over 2011 to a median price of $434,500 – six months ago, the Victorian capital’s unit prices were still growing, albeit at a very modest 0.26%. 
There was some respite in country Victoria, which recorded a small increase in unit prices, with values rising 0.67% for the 2011 calendar year to a median of $258,000. 
Canberra was the only capital city unit market where values picked up in the second half of 2011, rising 2.4% on annualised basis to a median of $432,000 after recording growth of 1.97% at the end of June 2011. 
The federal capital also bucked a trend of declining sales activity and recorded a 23% increase in unit sales over the year, compared with a drop 6.2% nationally. 
Melbourne was the only other market to record an increase, with sales activity rising by just over 1% over the year. 
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Annual change in unit prices as of December 2011
</td>
<td valign="top" width="205">
Annual change in unit prices as of June 2011
</td>
</tr>
<tr>
<td valign="top" width="205">
Perth
</td>
<td valign="top" width="205">
-5.05%
</td>
<td valign="top" width="205">
-3.54%
</td>
</tr>
<tr>
<td valign="top" width="205">
Melbourne
</td>
<td valign="top" width="205">
-4.28%
</td>
<td valign="top" width="205">
0.26%
</td>
</tr>
<tr>
<td valign="top" width="205">
Brisbane
</td>
<td valign="top" width="205">
-4.18%
</td>
<td valign="top" width="205">
-3.19%
</td>
</tr>
<tr>
<td valign="top" width="205">
Adelaide
</td>
<td valign="top" width="205">
-3.53%
</td>
<td valign="top" width="205">
-0.33%
</td>
</tr>
<tr>
<td valign="top" width="205">
Canberra
</td>
<td valign="top" width="205">
2.39%
</td>
<td valign="top" width="205">
1.97%
</td>
</tr>
<tr>
<td valign="top" width="205">
Sydney
</td>
<td valign="top" width="205">
2.16%
</td>
<td valign="top" width="205">
4.43%
</td>
</tr>
<tr>
<td valign="top" width="205">
Australia
</td>
<td valign="top" width="205">
-0.3%
</td>
<td valign="top" width="205">
0.44%
</td>
</tr>
</tbody></table>
 Source: Residex
Outside of the major capital cities, Darwin unit prices fell by almost 8% over the course of 2011 to a median of $391, 500. Six months ago Darwin unit prices were down 5.61%.
Outside of urban areas, country unit prices tumbled most notably in country Queensland, where prices fell over 10% to a median of $300,000 and in country Tasmania, where prices fell 9% to $206,000.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td>
Area
</td>
<td>
Median unit value
</td>
<td>
10years % p.a.
</td>
<td>
Year ending Dec 2011
</td>
<td>
Last quarter
</td>
<td>
Last month
</td>
</tr>
<tr>
<td>
ACT
</td>
<td>
$432,000
</td>
<td>
9.22%
</td>
<td>
2.39%
</td>
<td>
0.29%
</td>
<td>
1.99%
</td>
</tr>
<tr>
<td>
Adelaide
</td>
<td>
$307,500
</td>
<td>
9.12%
</td>
<td>
-3.53%
</td>
<td>
-0.92%
</td>
<td>
-0.81%
</td>
</tr>
<tr>
<td>
SA Country
</td>
<td>
$230,500
</td>
<td>
7.20%
</td>
<td>
-1.96%
</td>
<td>
0.89%
</td>
<td>
-0.50%
</td>
</tr>
<tr>
<td>
Brisbane
</td>
<td>
$353,000
</td>
<td>
8.83%
</td>
<td>
-4.18%
</td>
<td>
-0.78%
</td>
<td>
-0.01%
</td>
</tr>
<tr>
<td>
QLD Country
</td>
<td>
$300,000
</td>
<td>
7.32%
</td>
<td>
-10.11%
</td>
<td>
-4.63%
</td>
<td>
-2.47%
</td>
</tr>
<tr>
<td>
Darwin
</td>
<td>
$391,500
</td>
<td>
10.72%
</td>
<td>
-7.73%
</td>
<td>
0.42%
</td>
<td>
1.31%
</td>
</tr>
<tr>
<td>
Northern Territory
</td>
<td>
$377,500
</td>
<td>
10.62%
</td>
<td>
-8.05%
</td>
<td>
-1.10%
</td>
<td>
0.08%
</td>
</tr>
<tr>
<td>
Hobart
</td>
<td>
$274,500
</td>
<td>
10.08%
</td>
<td>
-5.14%
</td>
<td>
2.33%
</td>
<td>
1.47%
</td>
</tr>
<tr>
<td>
TAS Country
</td>
<td>
$206,000
</td>
<td>
9.91%
</td>
<td>
-9.01%
</td>
<td>
-0.98%
</td>
<td>
1.47%
</td>
</tr>
<tr>
<td>
Melbourne
</td>
<td>
$434,500
</td>
<td>
6.99%
</td>
<td>
-4.28%
</td>
<td>
-1.79%
</td>
<td>
0.34%
</td>
</tr>
<tr>
<td>
VIC Country
</td>
<td>
$258,000
</td>
<td>
7.99%
</td>
<td>
0.67%
</td>
<td>
-0.74%
</td>
<td>
0.29%
</td>
</tr>
<tr>
<td>
Perth
</td>
<td>
$378,500
</td>
<td>
9.01%
</td>
<td>
-5.05%
</td>
<td>
-0.96%
</td>
<td>
1.84%
</td>
</tr>
<tr>
<td>
WA Country
</td>
<td>
$301,500
</td>
<td>
7.02%
</td>
<td>
-0.72%
</td>
<td>
-0.43%
</td>
<td>
1.76%
</td>
</tr>
<tr>
<td>
Sydney
</td>
<td>
$488,000
</td>
<td>
4.81%
</td>
<td>
2.16%
</td>
<td>
0.87%
</td>
<td>
0.24%
</td>
</tr>
<tr>
<td>
NSW Country
</td>
<td>
$298,000
</td>
<td>
6.28%
</td>
<td>
-1.14%
</td>
<td>
-1.04%
</td>
<td>
-0.85%
</td>
</tr>
<tr>
<td>
Australia
</td>
<td>
$398,000
</td>
<td>
6.58%
</td>
<td>
-0.30%
</td>
<td>
0.34%
</td>
<td>
0.50%
</td>
</tr>
</tbody></table>
 
 
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Sydney unit prices up 2% in 2011, but Melbourne unit prices dive 5%: Residex

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Dwelling approvals rebounded in November 2011, rising 8.4% to 11,424 dwellings mainly as a result of a big jump in apartment and unit approvals.
The November rise reverses falls of 14.8% and 10% in September and October, according to the latest ABS data.
The seasonally adjusted estimate for private-sector units increased 17.2% in November 2011 following a fall of 10% in the previous month, and estimates for houses rose 4.8% following a fall of 9.6% in the previous month.
Building approval figure have see-sawed up and down throughout 2011, but the overall trend has been a significant decline, with total dwelling units down 18.9% for the year to November 2011. Units were down 27.8% and houses down 9.6%.
Building approvals have fallen in eight of the past 12 months on a seasonally adjusted basis up until November 2011.
HSBC chief economist Paul Bloxham says the “broad story” in the figures is that housing construction is still declining.
He described the November improvement as a bit of a tick back after the steep declines of September and October.
Victoria recorded a 39.9% seasonally adjusted jump in total building approvals in November, but this followed two months of steep declines in September (-13%) and October (-18.4%).
In absolute terms, approvals of houses in Victoria increased to 1,707 in November compared with just 930 in October, while unit approvals rose to 4,484 from 3,366 in October.
Putting the November result into perspective, there were 5,664 unit approvals in March 2011, but since then monthly approvals have all been below 5,000 units.
In Queensland, where the $10,000 building boost <a href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029">has now been extended to April</a> after gathering some momentum, building approvals improved by 6.6%.
NSW registered a 2% increase in building approvals, and there was a 16.9% drop in Western Australia.
Also released were construction figures, which revealed that seasonally adjusted residential building work done fell by 1.6% to an annualised level of $45.5 billion in the September 2011 quarter. 
HIA chief economist Harley Dale says: “Leading housing indicators looked very weak in late 2011, but ahead of this period actual residential construction activity had already been trending down for 12 months”. 
“A three-pronged attack is required to resurrect activity in residential building, an industry which has a large multiplier impact in terms of output and employment across the wider domestic economy,” he says. 
“There is an urgent need for further cuts in borrowing costs for both businesses and mortgage holders, short-term government stimulus, and renewed action on the longer-term housing policy reform front.” 
However, CBA chief economist Michael Blythe is forecasting dwelling construction to lift from 148,000 units in 2011 to 155,000 in 2012. 
“Part of the thinking behind this forecast is the idea that there is a ‘natural’ level of construction activity around which actual dwelling starts cycle,” he says.
“Over the past 15 years that natural level has sat in a 150,000-to-160,000 per annum range. The level reflects factors such as land release, manufacturing capacity, construction company appetite and competition for labour and resources from other construction activities. 
“Various factors drive the cycle around the natural level. But much of the divergence is associated with changes in government housing policy and exogenous ‘shocks’ such as the GFC. 
“For the past five years the demographically driven demand for new housing has run well ahead of new supply. As a result, there is an excess demand for dwellings and a pent-up or accumulated demand as well. Low residential vacancy rates and above-average growth in dwelling rents are the visible signs of this imbalance. This demand-supply mix suggests that there is limited downside to residential construction in 2012,” he says.
Other factors such as improved housing affordability Blythe says are “trending in the direction of upside risks to our 2102 call”.
 
 
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Building approvals jump in November due to pick-up in units: ABS

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Dixon Advisory’s US Masters Residential Property Fund added a further 18 Jersey City properties to its portfolio in December, it revealed in its latest update to the National Stock Exchange (NSX), where it is listed.
The fund now has 93 properties on its books with a combined value of $18.6 million. The properties have yields of between 8% and 13.7%
The fund also received conditional acceptances for five more properties, with an estimated combined acquisition cost of US$900,000, increasing the value of conditional acceptances to $18.6 million.
The December purchases range in price from US$139,000 for a two-family attached property featuring one three-bedroom apartment and one two-bedroom apartment with an estimated annual yield of 10.5% to US$359,000 paid for a three-family attached property featuring one four-bedroom apartment and two three-bedroom apartments with an estimated annual yield of 8%.
The fund raised an <a href="https://www.propertyobserver.com.au/overseas/investors-dry-up-as-dixon-advisory-raises-%2431-million-for-us-property-fund-in-third-capital-raising/2012011353033" target="_blank">extra $31 million from investors</a> in the second of a three-stage capital raising, which concluded this month, taking total capital raised to more than $100 million.
Shares in the fund are currently trading at $1.67 on the NSX, having listed at $1.61 at the end of June 2011.
 
 
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Dixon Advisory's US portfolio grows to 93 properties

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Three regional Queensland markets head RP Data’s top 10 list of locations with the highest proportions of homes with negative equity, according to the latest quarterly report.
The situation is particurlarly acute in far north Queensland, where more than one in five home owners (20.2%) had negative equity in their homes in the September 2011 quarter, up from 13.5% in the previous quarter.
This region, which includes Cairns, Palm Cove, Port Douglas, Innisfail, Weipa and Atherton, “has been noticeably weak and has felt the full brunt of the economic downturn”.
“Prior to the onset of the financial crisis this region was benefitting from surging demand due to strong population growth, and property values were subsequently rising strongly.
“As a result, the vast majority of home owners that have purchased since 2008 are likely to be in a negative equity position,” says RP Data.
Second and third on the list are the Gold Coast (14% of homes in negative equity) and the Sunshine Coast (13.5% in negative equity) while the Wide Bay-Burnett region – the coastal and hinterland areas between Caloundra and Gladstone – also makes it onto the list with, just under one in 10 homes in negative equity. 
The proportion of homes with negative equity on the Gold Coast is up from 9.9% in the previous quarter, highlighting “the ongoing weakness across the market, with no signs of a recovery in property values to date across the region”. 
Western Australia regional areas are also prominent on the list, with more than 10% of properties in negative equity in four locations. 
Two Victorian regional areas – Ovens-Murray and the Mallee – round out the top 10.
<img src="/images/stories/negativeequity1.gif">
Across Australia (<a href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062" target="_blank">and in line with a decline in property values</a>) nearly one in 20 home owners (4.9%) find themselves owning properties that are worth less than when they bought them, up from 3.7% in the previous quarter.
At the opposite end of the spectrum, the top 10 regions with the lowest levels of negative equity have less than 3.5% of all properties in a position where the current value is lower than the purchase price. 
Canberra has the lowest proportion of properties in a negative equity position, with just 1.2%, up from 1% in the June quarter, with Melbourne and Sydney also making the list of regions with the lowest instances of negative equity.
Outside of these three locations, most regions on this list are “heavily linked to the resources sector or they are agricultural areas” says RP Data.
<img src="/images/stories/negativeequity2.gif">
Overall, Victorian households enjoy the strongest equity position, with 68.5% of home owners having at least 50% equity in their property, down from 71.4% last quarter.
Households in the Northern Territory (60.6%) and the Australian Capital Territory (60.5%) also enjoy relatively strong positions.
RP Data estimates equity accumulation by measuring the difference between the original purchase price of home and the current valuation for individual properties around the country.
It therefore does not take into account the size of people’s mortgages in relation to the value of their homes – the typically understood definition of negative equity.
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FNQ, Sunshine and Gold coasts dominate RP Data negative equity list

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Although the <a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062">pace of house price declines increased over the last six months of 2011</a>, Residex CEO John Edwards expects the overall housing market to recover in 2012 and “exit a period of negative adjustment”.
Edwards says the price adjustments in 2011 were necessary, because markets were overvalued and affordability remained a problem.
This correction, he says, should ensure “we avoid the speculated housing ‘bubble bust’”.
“Our housing markets ended 2011 in a better position to where they started and I am confident that the year ahead will be better for residential property owners compared to last year,” he says.
He bases this view on the fact that in December 2010 house prices declined by 1.10% while they only declined by 0.72% in December 2011.
“Most owners should see their assets hold value or increase and this year could in fact be a good time for investor activity provided the world economy doesn’t move into severe recession as a consequence of the problems in Europe.
According to Edwards, examining the monthly trend for house and unit prices in Australia over the past two years suggests markets are “exiting a period of negative adjustment”.
<img src="/images/stories/residexjan181.gif">
“However, in my view, we should not expect any rapid uplift in housing values because current economic conditions are not capable of supporting strong consumer activity. Retail activity during the Christmas period certainly suggests that consumers are cautious,” he says.
Looking at the monthly growth trends on a capital city basis shows that Melbourne, Hobart and Perth are improving while the Canberra, Darwin, Sydney and  Brisbane markets heading down.
<img src="/images/stories/residexjan182.gif">
<img src="/images/stories/residexjan183.gif">
The bottom line, according to Edwards, “is that we have achieved a good result, and it looks like an overall improving position may be the trend in the coming year.” 
“Overall, the outcome for the year ahead will depend on interest rates, the eurozone crisis, inflation, the employment level and the carbon tax,” he says. 
Edwards says even further housing price falls in 2012 would provide opportunity. 
“Australians are much better placed than many other people in the world, and the adjustment period we have recently seen, with a clear upswing in our markets in the last few months, means that there is a reasonable chance that our markets will advance positively, albeit by a relatively small amount, in the current year,” he says. 
“Additionally, in this situation there will be bargains for the astute house hunter along with quality growth in many suburbs,” he says.
For more expert forecasts about what 2012 has in store for Australia's property market, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012">download our free eBook</a>.
</body></html>

Australian housing market set to recover in 2012: Residex's John Edwards

<html><body>
Renters of houses in Sydney are paying an average of $55 more a week than they were six months ago, with median house rents rising from $500 to $555 in the space of six months, according to the latest Residex data.
Sydney recorded a 6.73% increase in median house rents over the course of 2011, the biggest increase of all the capital cities.
Brisbane was the only capital city market to record a decline in house rents over 2011 with renters paying $375 per week on average (an decrease of 2.6% over 2011) compared to $380 six months ago.
Perth recorded the second biggest capital city increase, with house rents rising 5.26% over the past 12 months to a median of $400. On average Perth renters are paying $10 more than they did a year ago.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top">
Area
</td>
<td valign="top">
Rate month ending Dec 2011
</td>
<td valign="top">
Month ending Dec 2011
</td>
<td valign="top">
Year change
</td>
</tr>
<tr>
<td valign="top">
ACT
</td>
<td valign="top">
4.78%
</td>
<td valign="top">
$480
</td>
<td valign="top">
3.23%
</td>
</tr>
<tr>
<td valign="top">
Adelaide
</td>
<td valign="top">
4.33%
</td>
<td valign="top">
$330
</td>
<td valign="top">
0.00%
</td>
</tr>
<tr>
<td valign="top">
SA Country
</td>
<td valign="top">
5.02%
</td>
<td valign="top">
$255
</td>
<td valign="top">
6.25%
</td>
</tr>
<tr>
<td valign="top">
Brisbane
</td>
<td valign="top">
4.59%
</td>
<td valign="top">
$375
</td>
<td valign="top">
-2.60%
</td>
</tr>
<tr>
<td valign="top">
QLD Country
</td>
<td valign="top">
5.25%
</td>
<td valign="top">
$370
</td>
<td valign="top">
2.78%
</td>
</tr>
<tr>
<td valign="top">
Darwin
</td>
<td valign="top">
5.82%
</td>
<td valign="top">
$540
</td>
<td valign="top">
3.85%
</td>
</tr>
<tr>
<td valign="top">
Northern Territory
</td>
<td valign="top">
5.95%
</td>
<td valign="top">
$525
</td>
<td valign="top">
0.96%
</td>
</tr>
<tr>
<td valign="top">
Hobart
</td>
<td valign="top">
4.55%
</td>
<td valign="top">
$340
</td>
<td valign="top">
0.00%
</td>
</tr>
<tr>
<td valign="top">
TAS Country
</td>
<td valign="top">
4.84%
</td>
<td valign="top">
$250
</td>
<td valign="top">
-3.85%
</td>
</tr>
<tr>
<td valign="top">
Melbourne
</td>
<td valign="top">
3.45%
</td>
<td valign="top">
$380
</td>
<td valign="top">
1.33%
</td>
</tr>
<tr>
<td valign="top">
VIC Country
</td>
<td valign="top">
4.78%
</td>
<td valign="top">
$305
</td>
<td valign="top">
1.67%
</td>
</tr>
<tr>
<td valign="top">
Perth
</td>
<td valign="top">
4.45%
</td>
<td valign="top">
$400
</td>
<td valign="top">
5.26%
</td>
</tr>
<tr>
<td valign="top">
WA Country
</td>
<td valign="top">
5.00%
</td>
<td valign="top">
$335
</td>
<td valign="top">
4.69%
</td>
</tr>
<tr>
<td valign="top">
Sydney
</td>
<td valign="top">
4.40%
</td>
<td valign="top">
$555
</td>
<td valign="top">
6.73%
</td>
</tr>
<tr>
<td valign="top">
NSW Country
</td>
<td valign="top">
5.29%
</td>
<td valign="top">
$340
</td>
<td valign="top">
3.03%
</td>
</tr>
<tr>
<td valign="top">
Australia
</td>
<td valign="top">
4.43%
</td>
<td valign="top">
$365
</td>
<td valign="top">
-1.35%
</td>
</tr>
</tbody></table>
 
Darwin remains the second most expensive city to rent a house, with rents increasing by 3.85% to $540 per week.
Outside of Brisbane, Country Tasmania was the only other market to register a decline in rents over the year with the median rent falling 3.85% to $250 per week.
Capital city rent changes over past six months:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Median weekly rent Dec 2011
</td>
<td valign="top" width="205">
Median weekly rent June 2011
</td>
</tr>
<tr>
<td valign="top" width="205">
Sydney
</td>
<td valign="top" width="205">
$555
</td>
<td valign="top" width="205">
$500
</td>
</tr>
<tr>
<td valign="top" width="205">
Darwin
</td>
<td valign="top" width="205">
$540
</td>
<td valign="top" width="205">
$520
</td>
</tr>
<tr>
<td valign="top" width="205">
Canberra
</td>
<td valign="top" width="205">
$480
</td>
<td valign="top" width="205">
$480
</td>
</tr>
<tr>
<td valign="top" width="205">
Perth
</td>
<td valign="top" width="205">
$400
</td>
<td valign="top" width="205">
$390
</td>
</tr>
<tr>
<td valign="top" width="205">
Melbourne
</td>
<td valign="top" width="205">
$380
</td>
<td valign="top" width="205">
$380
</td>
</tr>
<tr>
<td valign="top" width="205">
Brisbane
</td>
<td valign="top" width="205">
$375
</td>
<td valign="top" width="205">
$380
</td>
</tr>
<tr>
<td valign="top" width="205">
Hobart
</td>
<td valign="top" width="205">
$340
</td>
<td valign="top" width="205">
$350
</td>
</tr>
<tr>
<td valign="top" width="205">
Adelaide
</td>
<td valign="top" width="205">
$330
</td>
<td valign="top" width="205">
$320
</td>
</tr>
<tr>
<td valign="top" width="205">
Australia
</td>
<td valign="top" width="205">
$365
</td>
<td valign="top" width="205">
$370
</td>
</tr>
</tbody></table>
Source: Residex
 
 
</body></html>

Sydney house rents up $55 per week in six months, but Brisbane rents down: Residex

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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