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Australian house prices deteriorated considerably over the last six months of 2011, according to Residex, with Melbourne showing the greatest deterioration over this period.
In its latest report, Residex data reveals that across Australia house prices declined by 3.18% in 2011, compared with an annual decline of just 1.19% at the end of June 2011. 
Six month ago, Melbourne house prices were actually up 1.58% on annualised basis, but the latest report shows they are now down 3.28% over the past 12 months to a median value of $574,000. 
The rate of decline in Sydney house prices has also picked up, although the city recorded the smallest drop of the major capital city markets, with values falling 2.54% for the year to a median of $656,000. Six months ago Sydney house prices were down just 0.47% for the year. 
December figures suggest the decline in Brisbane house prices appears to be slowing, with the city recording an annual fall of 6.7% over 2011 to $427,500. Six months ago Brisbane prices were down 5.66% for the year. 
Perth house prices declined by 3.76% for the year, having been down 2.21% for the year six months ago, while Adelaide price falls accelerated, falling 3.17% over 2011. Adelaide prices were down 1.38% at the end of June 
<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 house prices as of December 2011
</td>
<td valign="top" width="205">
Annual change in house prices as of June 2011
</td>
</tr>
<tr>
<td valign="top" width="205">
Melbourne
</td>
<td valign="top" width="205">
-3.28%
 
</td>
<td valign="top" width="205">
1.58%
</td>
</tr>
<tr>
<td valign="top" width="205">
Sydney
</td>
<td valign="top" width="205">
-2.54%
 
</td>
<td valign="top" width="205">
-0.47%
</td>
</tr>
<tr>
<td valign="top" width="205">
Brisbane
</td>
<td valign="top" width="205">
-6.70%
 
</td>
<td valign="top" width="205">
-5.66%
</td>
</tr>
<tr>
<td valign="top" width="205">
Perth
</td>
<td valign="top" width="205">
-3.76%
 
</td>
<td valign="top" width="205">
- 2.21%
</td>
</tr>
<tr>
<td valign="top" width="205">
Adelaide
</td>
<td valign="top" width="205">
-3.17%
 
</td>
<td valign="top" width="205">
-1.38%
</td>
</tr>
<tr>
<td valign="top" width="205">
Australia
</td>
<td valign="top" width="205">
-3.18%
</td>
<td valign="top" width="205">
-1.19%
</td>
</tr>
</tbody></table>
 Source: Residex
While Melbourne house prices continued to fall in 2011, country Victoria prices rebounded, rising by 3.38% in the year to median of $332,000. The only other markets to record price increases over the year were Hobart (up 0.32% to $389,000) and country South Australia, where prices increased by 0.49% during 2011 to $264,000. 
According to Residex, sales activity across Australia dropped by 6.32% in 2011, however buyers showed interest in Melbourne, Canberra and Darwin, where sales increased by 14.95%, 7.38% and 7.30% respectively. 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top">
Area
</td>
<td valign="top">
Median house price
</td>
<td valign="top">
10 years % p.a.
</td>
<td valign="top">
Year ending Dec 2011
</td>
<td valign="top">
Last quarter
</td>
<td valign="top">
Last month
</td>
</tr>
<tr>
<td valign="top">
ACT
</td>
<td valign="top">
$526,500
</td>
<td valign="top">
8.47%
</td>
<td valign="top">
-2.03%
</td>
<td valign="top">
-1.84%
</td>
<td valign="top">
0.51%
</td>
</tr>
<tr>
<td valign="top">
Adelaide
</td>
<td valign="top">
$395,500
</td>
<td valign="top">
8.34%
</td>
<td valign="top">
-3.17%
</td>
<td valign="top">
-0.43%
</td>
<td valign="top">
0.79%
</td>
</tr>
<tr>
<td valign="top">
SA Country
</td>
<td valign="top">
$264,000
</td>
<td valign="top">
8.60%
</td>
<td valign="top">
0.49%
</td>
<td valign="top">
3.09%
</td>
<td valign="top">
2.42%
</td>
</tr>
<tr>
<td valign="top">
Brisbane
</td>
<td valign="top">
$427,500
</td>
<td valign="top">
8.65%
</td>
<td valign="top">
-6.70%
</td>
<td valign="top">
-2.54%
</td>
<td valign="top">
-0.49%
</td>
</tr>
<tr>
<td valign="top">
QLD Country
</td>
<td valign="top">
$367,000
</td>
<td valign="top">
8.75%
</td>
<td valign="top">
-3.41%
</td>
<td valign="top">
0.09%
</td>
<td valign="top">
-0.67%
</td>
</tr>
<tr>
<td valign="top">
Darwin
</td>
<td valign="top">
$484,500
</td>
<td valign="top">
10.15%
</td>
<td valign="top">
-6.11%
</td>
<td valign="top">
-1.25%
</td>
<td valign="top">
-1.70%
</td>
</tr>
<tr>
<td valign="top">
Northern Territory
</td>
<td valign="top">
$462,000
</td>
<td valign="top">
10.21%
</td>
<td valign="top">
-4.72%
</td>
<td valign="top">
-0.98%
</td>
<td valign="top">
-1.51%
</td>
</tr>
<tr>
<td valign="top">
Hobart
</td>
<td valign="top">
$389,000
</td>
<td valign="top">
10.94%
</td>
<td valign="top">
0.32%
</td>
<td valign="top">
1.14%
</td>
<td valign="top">
2.81%
</td>
</tr>
<tr>
<td valign="top">
TAS Country
</td>
<td valign="top">
$269,500
</td>
<td valign="top">
10.43%
</td>
<td valign="top">
-1.89%
</td>
<td valign="top">
-0.30%
</td>
<td valign="top">
0.03%
</td>
</tr>
<tr>
<td valign="top">
Melbourne
</td>
<td valign="top">
$574,000
</td>
<td valign="top">
8.07%
</td>
<td valign="top">
-3.28%
</td>
<td valign="top">
-1.01%
</td>
<td valign="top">
-0.10%
</td>
</tr>
<tr>
<td valign="top">
VIC Country
</td>
<td valign="top">
$332,000
</td>
<td valign="top">
8.19%
</td>
<td valign="top">
3.38%
</td>
<td valign="top">
1.76%
</td>
<td valign="top">
-0.89%
</td>
</tr>
<tr>
<td valign="top">
Perth
</td>
<td valign="top">
$469,000
</td>
<td valign="top">
9.52%
</td>
<td valign="top">
-3.76%
</td>
<td valign="top">
0.41%
</td>
<td valign="top">
-1.11%
</td>
</tr>
<tr>
<td valign="top">
WA Country
</td>
<td valign="top">
$350,000
</td>
<td valign="top">
9.66%
</td>
<td valign="top">
-2.72%
</td>
<td valign="top">
1.75%
</td>
<td valign="top">
-2.11%
</td>
</tr>
<tr>
<td valign="top">
Sydney
</td>
<td valign="top">
$656,000
</td>
<td valign="top">
4.97%
</td>
<td valign="top">
-2.54%
</td>
<td valign="top">
-1.78%
</td>
<td valign="top">
-0.24%
</td>
</tr>
<tr>
<td valign="top">
NSW Country
</td>
<td valign="top">
$334,500
</td>
<td valign="top">
6.31%
</td>
<td valign="top">
-2.78%
</td>
<td valign="top">
-1.09%
</td>
<td valign="top">
0.40%
</td>
</tr>
<tr>
<td valign="top">
Australia
</td>
<td valign="top">
$429,500
</td>
<td valign="top">
8.05%
</td>
<td valign="top">
-3.18%
</td>
<td valign="top">
-1.00%
</td>
<td valign="top">
-0.72%
</td>
</tr>
</tbody></table>
 
 
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Melbourne leads nationwide drop in house prices in second half of 2011: Residex

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Demand for fixed-rate home loans is spiking because the products have become much cheaper than variable-rate mortgages, according to UBS.
Traditionally borrowers take out a fixed-rate loan to give them certainty about future interest rate payments when interest rates are likely to rise, but according to UBS interest rate strategist Scott Haslem demand is being driven the low fixed rates on offer.
"It doesn't mean people think rates will rise and it doesn't even mean they don't expect them to fall again," he tells Business Day’s Peter Martin. 
“It's just that fixed rates have become better value – it's becoming cheaper to grab the bird in the hand." The most recent ABS housing finance data for November shows that <a target="_blank" href="/news">fixed-rate loan approvals reached 11.1%</a> (up from 10.6% in October) of all loans, their highest proportion since November 2008 at the height of the global financial crisis.
December data from mortgage brokers <a target="_blank" href="/news">Mortgage Choice</a> and <a target="_blank" href="/news">AFG</a> show an even greater uptake of fixed-rate borrowers (24% and 19% respectively), indicating that fixed-rate approvals will rise again when December ABS figures come out in February.
According to mortgage comparison RateCity.com.au, <a target="_blank" href="/news">about 70% of lenders cut their fixed rates last year</a> with the average three-year fixed rate falling to just 6.29% in December, and one-year fixed rates falling to 6.27%.
While the standard variable rate has also fallen mainly as a result of official RBA rate cuts in November and December, the average rate is 6.89%, more than half a percentage point higher than the average fixed rate.
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Price, not rate fears, driving fixed-rate mortgage spike: UBS's Scott Haslem

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The regional Victorian town of Warrnambool is one of only three locations to receive multiple votes in Smart Property Investment magazine’s 2012 list of 50 suburbs or towns with the most capital growth potential.
Out of the three towns that received multiple votes – the others being perennial hotspot list favourite Gladstone and nearby Rockhampton City, both in north Queensland – Warnambool is the only one not reliant on the resources boom for its high rating.
Multiple vote towns in the SPI Fast 50
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="102" valign="top">
Suburb
</td>
<td width="94" valign="top">
Number of expert picks
</td>
<td width="90" valign="top">
Distance from nearest major city
</td>
<td width="102" valign="top">
Population
</td>
<td width="82" valign="top">
Median house price
</td>
<td width="83" valign="top">
Median unit price
</td>
<td width="64" valign="top">
Gross yields
</td>
</tr>
<tr>
<td width="102" valign="top">
Gladstone, Qld
</td>
<td width="94" valign="top">
3
</td>
<td width="90" valign="top">
550 kms to Brisbane
</td>
<td width="102" valign="top">
29,000
</td>
<td width="82" valign="top">
$437,000
</td>
<td width="83" valign="top">
$350,000
</td>
<td width="64" valign="top">
5%/7%
</td>
</tr>
<tr>
<td width="102" valign="top">
Rockhampton City, Qld
</td>
<td width="94" valign="top">
2
</td>
<td width="90" valign="top">
600 kms to Brisbane
</td>
<td width="102" valign="top">
76,000
</td>
<td width="82" valign="top">
$217,000
</td>
<td width="83" valign="top">
$447,500
</td>
<td width="64" valign="top">
6%/5%
</td>
</tr>
<tr>
<td width="102" valign="top">
Warrnambool, Vic
</td>
<td width="94" valign="top">
2
</td>
<td width="90" valign="top">
265 kms from Melbourne
</td>
<td width="102" valign="top">
33,000
</td>
<td width="82" valign="top">
$316,000
</td>
<td width="83" valign="top">
$255,000
</td>
<td width="64" valign="top">
6%/5%
</td>
</tr>
</tbody></table>
Source: SPI Fast 50
Situated on the Princes Highway, about 265 kilometres from Melbourne and near the western end of the Great Ocean Road, <a target="_blank" href="/news">Warrnambool </a>is one of only four Victorian locations to be included on this year’s list.
The town, which dates back to the gold rush in the 1840s, has strong ties to agriculture and the dairy industry, as well as tourism and construction. It has been picked by hotspotting.com.au director Terry Ryder and Todd Hunter, a former Aussie mortgage broker and director of research firm Wheregroup.
It has a median price of $316,000 for houses with gross rental yields of 6% and a $255,000 median price for units with gross rental yields of 5% – both well above the state median (according to Rismark-RP Data) of 3.7% for houses and 4.3% for units.
Ryder describes Warrnambool as “the leading centre of Victoria’s south west” and says it is “growing so fast that the local council has had to rezone hundreds of hectares of farming land for new industrial and residential estates”.
According to Ryder, Warrnambool’s strengths are “tourism, construction, education and medical services”.
“Retail is rapidly expanding and there is a plethora of new power generation facilities, including gas-fired power stations and major wind farms,” he says.
The town has a resident population of just under 34,000 but attracts more than 700,000 visitors each year who come to lie on its beaches in summer and to view southern right whales in the winter months.
Rockhampton, where the median house prices is still a very affordable $217,000 (units are far more expensive at $447,500), was selected by author and founder of Destiny Financial Solutions Margaret Lomas and Luke Berry from hotspot research firm NextHotSpot.
Lomas calls <a target="_blank" href="/news">Rockhampton City </a>a place to “buy now and wait for three to five years for some action” and highlights the current affordability of houses and yields of up to 7.5%.
“I see this area benefiting from the flow-on effect of Gladstone without the high risk that mining areas traditionally bring,” she says.
Berry notes that although the scale of investment in Rockhampton is smaller than in <a target="_blank" href="/news">Gladstone</a>, it is still significant, with the town containing several cheap areas such as <a target="_blank" href="/news">Berserker </a>(a median house price of around $240,000) that are “set to boom”.
Gladstone, which has appeared on just about every hotspot list in the past 12 months, is the only location to be selected by three of the seven experts on the SPI panel, picked by SQM research director Louis Christopher, Terry Ryder and Helen Collier-Kogtevs, managing director of property investment group Real Wealth Australia.
The town, which is at the epicentre of $75 billion worth of energy, rail and port projects, is expected to undergo significant growth over the next five years, according to Collier-Kogtevs.
“It is strategically important to the national economy, has average historical performance and great projected performance, low vacancy rates, higher per capita income levels and a shortage of and high demand for housing,” she says.
Overall NSW has the highest number of growth hotspots in the top 50 with 18, followed by Queensland with 11, Western Australia with 10 and South Australia with six.
Reflecting the declining fortunes of their respective markets, Victoria has just four suburbs in the top 50 and the ACT just one – the capital Canberra.
Other areas to shine in the survey include western Sydney, which received a high level of recommendations for suburbs including <a target="_blank" href="/news">Blacktown</a>, <a target="_blank" href="/news">Goulburn</a>, <a target="_blank" href="/news">Liverpool</a>, <a target="_blank" href="/news">Seven Hills </a>and <a target="_blank" href="/news">Penrith</a>.
The City of <a target="_blank" href="/news">Onkaparinga</a>, south of the Adelaide CBD, comprised three out of the six predicted hotspots for South Australia with <a target="_blank" href="/news">Hackham</a>, <a target="_blank" href="/news">Aldinga Beach </a>and <a target="_blank" href="/news">Seaford </a>all selected.
Suburbs were picked based on population growth, demand for housing, income levels, employment, vacancy rates, previous capital growth and current gross rental yields.
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Warrnambool emerges, but Queensland's Gladstone still darling of top 50 investment list

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Increased first-home buyer activity and demand for fixed-rate mortgages were the two key trends to emerge from solid November ABS housing finance figures released today. The figures, which include the impact of the November 1 rate cut, reveal that the number of owner-occupier mortgages increased 1.4% to just under 47,000 – the eighth consecutive monthly increase in mortgage approvals.
By state, the figures for owner-occupier finance were mixed, continuing the divide evident in 2011, noted Westpac. 
“NSW outperformed, up 4.2%, with the announced changes to stamp duty arrangements from the start of 2012 bringing demand forward,” Westpac says. 
“The mining state of WA strengthened, up 0.9%. However, Victoria weakened, down 0.2%, with the state facing a sizeable increase in supply. Queensland remained disappointing, up 0.9%, which was insufficient to reverse falls over the previous two months,” says Westpac. There was a pick-up in the investment sector, with fixed loans for investment housing rising 2.2% to $6.6 billion while the total number of loans purchased for new dwellings increased by 2% over the month. 
Macquarie senior economist Brian Redican described the November data as “encouraging and a step in the right direction”.
He expects the two successive interest rate cuts and the prospect of more cuts to come in 2012 to deliver further boosts to the housing sector in the months to come.
“I think it does have to have a positive impact. These numbers don't reflect those cuts yet and it will have to take a few more months for that to flow through,” Redican says.
First-home buyers’ share of mortgage approvals (excluding refinancing) increased to 16.1% in November from 15.7% in October. “This is the highest first-home buyer share of total approvals since January 2010 and shows that improving housing affordability is generating some moderate first-home buyer activity,” noted David Cannington from ANZ Research. Cannington expects first-home buyers’ share of the market to continue to increase over the coming months due to further weakening in house prices and lower mortgage rates – December housing finance figures will factor in both the November and December rate cuts as well as improved interest rate sentiment. The other key finding from the November data was the growing demand for fixed-rate loans, which increased to 11.1% in November from 10.6% in October to be at the highest proportion since June 2008. “Attractive fixed mortgage rates and ongoing financial market uncertainty continued to drive an increase in fixed rate lending,” Cannington says.
Dean Rushton, chief operating officer of mortgage broker Loan Market, expects the eight months of consecutive mortgage growth to continue while consumers act upon the November and December rate cuts.
“Consumers will likely remain confident in the housing finance market, with the strong possibility of a rate cut in February,” he says.
“This should fuel a significant number of approvals in the coming months, which will stimulate many struggling sectors in the economy.” 
Mortgage approvals in NSW were up 4.9% from October 2011, and 9.4% for the year. 
“In NSW we’re seeing a significant demand brought forward by first-home buyers acting before the 2011 deadline for the stamp duty exemption,” Cannington says.
There was a 2% increase in loans for the purchase of new homes with a 5.6% rise in NSW, an 8.4% increase in Queensland, a 13.4% in South Australia, a 20.9% increase in the Northern Territory, and a 17.5% increase in the ACT. 
The number of loans for new housing fell by 8.5% in Victoria, 3.3% in Western Australia, and 8.9% in Tasmania. Over the three months to November 2011 lending for new housing was down in all states and territories except for Tasmania, WA and Queensland. 
<img src="/images/stories/newhomeloanshia.gif">
 HIA chief economist Harley Dale says there is “a modest revival underway in the established lending market, which now extends to five rises in six months”. 
“New home lending has yet to join the ride,” he says. 
The combined number of loans for construction/purchase of a new dwelling was effectively flat in November 2011 (up 0.3%) to be down by 8% when compared to the same month in 2010,” Dale says.
“The second half of 2011 saw a renewed trend decline in new home lending, a concerning situation which further highlights the risk of new housing starts approaching GFC-like levels once more,” Dale adds.
Masters Builders Australia chief economist Peter Jones also noted the ongoing weakness in loans for construction and purchase of new dwellings.
“The key finance indicator released today by the ABS shows that demand for new dwellings remains flat, despite indications of a pick-up in commitments for the purchase of established dwellings.
“The housing market is beginning to pick itself off the floor but the number of finance commitments remains weak by historical standards as consumer caution and euro turmoil work against the upswing. 
“The two recent rate cuts in November and December will help, but Master Builders believes the Reserve Bank still needs to do more to boost confidence and encourage a recovery in residential building.
 
 
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Mortgage approvals up amid increased first-home buyer and fixed-rate home loan demand

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Perth house prices may have finally bottomed out, with the Real Estate Institute of Western Australia recording its first median dwelling price rise since March 2010, while property listings are also at near two-year lows.
The Perth median house price increased by 0.5% in the December quarter, putting the current median at $465,000; up by $5,000 on the revised September quarter figure. 
The number of properties on the market fell by 12% to 13,500 over the quarter, their lowest level since May 2010 – Perth’s long-term average is about 12,000 listings. 
In a further sign that the market is stabilising, REIWA figures show that discounting fell from 7% to 4.2% over the quarter once sales that achieved or exceeded the asking price are factored in. 
Lastly, the rental market has tightened from 3.4% to 2.3% over the past 12 months, with median weekly rents for houses rising $20 to $420 over the December quarter. 
REIWA president David Airey says the shift in median price is largely insignificant because it was “triggered by an increase in trade-up buyers countering the influence of first-home buyers”. 
“First-home buyers have been skewing the median downwards by generating large sales volumes of more affordable homes, but now this has been balanced with more upgrade buyers in the market, who tend to purchase the more expensive properties,” Airey says. 
“REIWA data show that while first-home buyers continue to be increasingly active in the market, we saw an increase in trade-up buyers during the December quarter and an increase in house sales of around 6% to 7%, which may have put a floor under prices.” 
“It’s a similar situation in the multi-residential sector with units, apartments, villas and townhouses also experiencing an increase in turnover and a 1% increase in median price,” he says. 
Airey says the drop in listings is not unexpected and reflects a seasonal decline over the holiday period when some sellers remove their properties from the market until the new year. 
“We may see listings swell towards the end of March as they have done in some previous years, so we’ll be watching that.” 
However, he says it is encouraging that listings are currently 12% lower than the same time last year and “well down on the peak of 18,200 we saw in April last year, which pushed prices down,” he says. 
“The number of houses for sale has fallen to its lowest level since March 2010, while land remains over represented with 2,800 lots on the market. 
“The housing market seems to be stabilising, with an increasing number of sellers adopting more realistic asking prices, with both the number of sellers discounting and the average discount both coming down in the quarter,” he says.
According to Airey, the rental market is the emerging pressure point in the housing system, with the vacancy rate tightening further and rents for houses increasing. 
“Our preliminary data show the vacancy rate dropping to 2.3% in the quarter and well down on the 3.4% from the same period last year. While the median rent for units and apartments remains steady at $380 per week, it has increased by $20 for houses to $420 per week,” he says. 
The overall median rent for Perth has reached $400 per week, representing an increase of 8.1% over the last year. 
“It’s evident there is greater confidence retuning to the property market reflected in the increase in sales activity in the December quarter and the fall in listings we saw across 2011. 
“This bodes well for a positive start to 2012, but we still maintain some level of cautiousness given the global economic situation despite WA having a more robust economy,” Airey says.
 
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Perth median house price up in December quarter to $465,000, first rise in almost two years

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The Queensland property market has a long way to go to get back to full health one year on from the natural disasters that devastated the state, but housing confidence is slowly returning. 
The January 2011 south-east Queensland floods and northern Queensland cyclone one month later killed 35 people and affected more than 500,000 square kilometres of Queensland, including low-lying parts of Brisbane, Ipswich and the Lockyer Valley and up North, Cairns, Townsville Tully, and Innisfail.
The Queensland floods resulted in 58,463 claims totalling $2.4 billion, while cyclone Yasi resulted in 72,203 claims amounting to $1.33 billion. An estimated 15% of claims are still to be processed, <a href="https://www.propertyobserver.com.au/residential/strata-insurance-premiums-surge-in-wake-of-queensland-natural-disasters-giving-investors-financial-grief/2011112552542" target="_blank">with insurers warning premiums will soar</a> should flood cover become mandatory.
The hard data shows that Brisbane is still struggling.
Last week, as part of his mid-year budget update, Queensland Treasurer Andrew Fraser adjusted his forecasts for housing investment, with the state still struggling to attract property investors.
“The dwelling investment outlook has softened since the budget, when investment was forecast to partly recover by 5.75% in 2011-12,” Fraser said.
In its most recent monthly update, the RP Data-Rismark index reported that Brisbane remains, alongside Melbourne, the weakest capital city, with values down 1.7% over the three months to November on a seasonally adjusted basis.  Brisbane house prices are down 9% from their peak and 7% for the year to November.
Real Estate Institute of Queensland chief executive Anton Kardash says the property market is “currently transitioning from a very tough 2011 into a market characterised by increasing buyer enquiry, sales activity, and confidence levels, and the extension of the boost will add to this more positive state of play”. The REIQ September 2011 quarter report (its most recent survey) noted some signs of green shoots, with the preliminary number of house sales up a healthy 17% compared with the June quarter. Some regions recorded substantial jumps in activity as buyers finally started to foray back into the market. “What these figures show is that it appears it took about six months for our property market to begin to heal from the natural disasters earlier this year,” says REIQ chairwoman Pamela Bennett. “Activity in most areas improved markedly in the September quarter compared to the first six months of this year, but we mustn’t get ahead of ourselves given sales activity is still about 20% below where we were this time last year.”     
While the median house price in Brisbane reduced 2% to an even $500,000 over the period, the number of preliminary house sales was up 13%. 
 
<hr class="system-pagebreak">
 
Up north there are also signs of recovery, with the Fraser Coast, Bundaberg, Rockhampton and Cairns all recording double-digit growth in the number of house sales over the September quarter.
The most recent Property Council of Australia (PCA)-ANZ Property Industry Confidence Survey of industry players <a href="https://www.propertyobserver.com.au/residential/australian-property-market-confidence-highest-in-resource-rich-areas-pca-anz-survey/2012011153018" target="_blank">found housing confidence had risen above the national average for the December 2011 quarter</a>, after a very glum reading in September.
The improvement has been noted by Kathy McDermott, executive director of the Queensland branch of the PCA, though she says much more needs to be done to aid the state’s recovery.
“There was a nice improvement in confidence in the December quarter, but the market is still very distressed and needs support,” she told Property Observer.
The Property Council of Australia alongside the Housing Industry Association, Master Builders Australia and Urban Development Institute of Australia were united in their call for the state government to extend the $10,000 building boost available for those buying or building new homes.
This plea was answered last week, <a href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029" target="_blank">with the stimulus scheme extended to April</a>.
Figures released by the government show the scheme is gaining traction, with more than 500 people applying for the grant between December 30 and January 11, taking total application numbers to 3,700.
Fraser himself noted the state’s housing market is still doing it tough, particurlarly in attracting property investors.
“Civilian population growth slowed further to 11,200 persons in September quarter 2011, dampening owner-occupier demand. Lower demand has seen the ABS measure of Brisbane house prices fall 5.2% over the past year,” he said. 
“While this benefits housing affordability, weaker prospects for capital gains and greater uncertainty since the escalation in the euro debt crisis have weighed on investor demand since the budget, as has ongoing tight credit conditions. 
“These negative effects are expected to be partly offset by the positive impact from recent cuts in official interest rates and the Queensland government’s Queensland building boost grant, which is to be extended until 30 April 2012. With the surge in business investment expected to generate higher migration levels and stronger employment growth next year, the expected recovery in dwelling investment is forecast to strengthen in 2012-13.” 
There has of course been very real recovery and progress, with photos released last week showing Brisbane suburbs close to the Brisbane River that were under water and mud a year ago now completely cleaned up and back to their pre-flood state. 
The city has cleared mud and debris from 460 kilometres of the stormwater drainage network, with 23 damaged CityCat and ferry terminals back up and running, 38,000 trees planted and 403 out of the 406 flood-affected parks restored. 
Brisbane City Council has committed to providing free advice and assistance to help residents restore properties affected by the floods. 
Outside of Brisbane, some of the worst affected regions are also recovering, notes Lucinda Coates <a href="https://theconversation.edu.au/institutions/macquarie-university">Macquarie Universit</a>y’s Natural Hazards Research Centre.
“As part of a voluntary land-swap initiative, Lockyer Valley Regional Council is now giving flood-impacted residents the option to move to a new land parcel located adjacent to Grantham but outside the flood zone. At the time of writing the first residents are moving into their new homes, and 70% to 80% of residents are expected to eventually relocate.
“While this is the first time a local government authority has assisted a disaster-struck community this way, it’s certainly not the first time an Australian town has been shifted to higher ground to avoid floods,” she says.
Photograph by Erik K. Veland
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One year after floods, Queensland property market showing signs of tentative recovery

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Members Equity Bank will look to sell its home loans through mortgage brokers after signing a distribution agreement with National Mortgage Brokers (nMB).
Melbourne-based nMB is the bank’s first broker partner, and it has plans for additional third-party agreements further down the track.
The bank’s decision to partner with brokers comes as more lenders look to strengthen ties with the broker market.
According to Fujitsu Consulting’s October 2011 Australian Mortgage Industry report, mortgage brokers currently originate 43% of all mortgages in Australia.
As a result, lenders have been improving their broker service propositions, including NAB, which last year extended its waived application fee and $700 switching incentive to its broker-only Homeside brand.
In October last year, a poll of 942 brokers by NAB’s Homeside division found that more than two-thirds of brokers believe the bank has improved its broker interaction.
In July, <a href="https://www.propertyobserver.com.au/finance/brokers-see-better-bank-relations-after-st-george-commission-move/2011071550817" target="_blank">St George increased the amount of commission brokers could earn</a> by upping the upfront commission component from 50 basis points to 65 basis points and also reintroduced a 15-basis-point trail commission.
Gerald Foley, managing director of nMB, says the negotiated distribution agreement allows ME Bank to make its products available to the estimated 40% of new borrowers who use a broker. 
“Our network relationship will also deepen ME Bank's accessibility into areas where it may not have strong representation today,” says Foley. 
According to Ian Hendey, ME Bank’s group executive for brand, product and distribution, the decision to use third-party distribution followed considerable research across its customer base “that clearly signalled the broker channel was a key additional distribution channel”.
“Our research found that that more than half of our target market of industry super fund and union members would contact a mortgage broker for their home loan needs,” he says. 
The decision by the bank to part with brokers comes as figures from mortgage aggregator AFG revealed that non-major bank lenders’ share of mortgage lending increased strongly in December to nearly a quarter of all loans. 
Non-major bank lenders wrote 24% of all AFG loans in December, up from a previous 12-month average of just 19%.
 
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ME Bank connects with brokers as second-tier lenders gain ground

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ANZ has kept its variable mortgage lending rates unchanged following its first interest rate review out of step with the RBA. 
The bank’s standard variable rate is currently 7.3%.
 
The monthly review follows a statement in December 2011 that the bank would announce any changes to variable mortgage rates for retail mortgages and small business lending on the second Friday of each month, not following official RBA cash rate announcements. 
The next RBA announcement will be made on February 7, <a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030" target="_blank">when it is expected to cut the cash rate by 25 basis points to 4%</a>. 
ANZ will make its next independent rate decision on February 10. 
“By reviewing key variable lending rates each month we can more accurately reflect the sustained changes in funding costs we incur through the interest we pay to customers for their deposits and to investors in wholesale money markets,” says ANZ chief executive Australia Philip Chronican. 
“It helps us to contribute to an informed debate about how we fund our customers’ loans and the effects of the continuing global financial crisis on Australia, particularly the significant economic instability which currently exists in Europe. 
“We want the process of setting interest rates for our customers to be simple and transparent. This includes a promise to work hard to maintain competitive interest rates that will not disadvantage customers over the term of their loan. 
“To increase certainty for our customers the effective date for any variable interest rate changes made as part of the monthly review process will now be one week after the announcement, regardless of whether interest rates are going up or down. 
“In coming to our decision this month we wanted to be clear that these higher interest rates we are now paying our depositors and the elevated prices we are required to pay for wholesale funds are going to be sustained given the volatility we saw late last year. 
“We also assessed our competitive position, the subdued state of credit demand and the overall state of the economy and decided it was prudent to maintain our current rates at this time,” he says. 
The bank used the following criteria in making its decision: 
1. "Ensuring attractive returns for depositors: ANZ is committed to providing customers with competitive returns and absolute security for their savings. 
2. "The cost of wholesale funding: This covers the interest we pay on funds from wholesale markets. The cost of these funds has become more volatile and expensive since the GFC and has been elevated in recent months as a result of the European debt crisis. 
3. "Our competitive position: ANZ is determined to remain competitive by attracting customers, winning business and managing our costs. 
4. "Our customers’ ability to afford loan repayments: We are committed to pricing loans and lending in a responsible way and giving consideration to the financial health of our customers, the economy and the banking system in Australia. 
5. "Regulatory requirements: As a bank, ANZ works within a strong prudential and regulatory environment. For example, we must hold capital reserves and levels of liquidity to operate safely and securely for customers.
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ANZ keeps rates unchanged in first independent call

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Just 33 investors took part in the third and final stage of Dixon Advisory’s second capital raising offer to buy shares in its US Masters Residential Property Fund, which acquires and rents out property in Jersey City, New Jersey. 
In total $1.27 million was invested in the third stage, which closed on January 9, taking the total equity raised to $31.14 million from 929 investors since <a href="https://www.propertyobserver.com.au/overseas/dixon-advisory-attracts-815-more-aussies-to-take-a-punt-on-us-housing-investment/2011112952603">the second round of capital raising</a> kicked off on October 24, 2011. 
US Masters Residential Property Fund capital raising 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="149" valign="top">
Stage
</td>
<td width="155" valign="top">
Offer expiry
</td>
<td width="166" valign="top">
No of investors
</td>
<td width="146" valign="top">
Money raised
</td>
</tr>
<tr>
<td width="149" valign="top">
1
</td>
<td width="155" valign="top">
November 22, 2011
</td>
<td width="166" valign="top">
815
</td>
<td width="146" valign="top">
$26.85 million
</td>
</tr>
<tr>
<td width="149" valign="top">
2
</td>
<td width="155" valign="top">
December 13, 2011
</td>
<td width="166" valign="top">
81
</td>
<td width="146" valign="top">
$3.02 million
</td>
</tr>
<tr>
<td width="149" valign="top">
3
</td>
<td width="155" valign="top">
January 9, 2012
</td>
<td width="166" valign="top">
33
</td>
<td width="146" valign="top">
$1.27 million
</td>
</tr>
<tr>
<td width="149" valign="top">
Total
</td>
<td width="155" valign="top">
 
</td>
<td width="166" valign="top">
929
</td>
<td width="146" valign="top">
$31.14 million
</td>
</tr>
</tbody></table>
 Source: US Masters Residential Property Fund 
The $31 million raised equates to less than a quarter of the maximum $140 million that was sought from investors, suggesting appetite for the fund has diminished <a href="https://www.propertyobserver.com.au/residential/overseas/australian-investment-fund-snaps-up-19-properties-in-us-state-of-new-jersey/2011070150672">since it listed in June</a> last year. 
Dixon Advisory managing director Alan Dixon tells Property Observer he is “overall relatively pleased with the size and amount of capital raised”. 
“The vast bulk of the funds came from Dixon Advisory clients (approximately 90% of the amount raised), with the balance coming from the general public.  No other dealer groups or advisory firms participated in a material way,” he says. 
“We actually got slightly more than we expected from Dixon Advisory clients, but we were hopeful of getting interest from other advisory groups and hence why we had the three different offer periods.  However, despite some good discussions, we didn’t receive that outside support so it wasn’t surprising that raisings two and three were so small. 
“Overall we were extremely happy with the support from Dixon Advisory clients and the general public who came in without an advisor.” 
Dixon says the fund is still keen to try and involve some other advisory groups at some point, “hopefully in the next 12 to 24 months”. 
“We have unitholder approval to raise further funds in place for another 9 months or so, after that we would have to seek approval again.  We definitely hope to raise some more funds in this time, but don’t have an exact timetable. 
“In the meantime, a $100 million fund leaves us very well placed to implement our strategy, and there is still a plentiful supply of attractive properties available to us.  There were a few slower weeks around Christmas, but the market is already getting more active and traditionally after Martin Luther King Day (this year January 16) the market is fully active again.” 
The US Masters Fund brought in $69.5 million from over 1,500 investors ahead of its listings on the small cap National Stock Exchange in June 2011, with strong demand from Australian investors and, in particular, self-managed superannuation funds. 
Just before Christmas, the fund revealed it had purchased 75 properties worth $14.9 million and had received conditional acceptances on a further 99 properties $18.5 million. 
All properties have been acquired in Jersey City with yields ranging between 8% and 11.3% 
In December, <a href="https://www.propertyobserver.com.au/overseas/dixon-advisory-pays-more-than-double-recent-sales-prices-for-some-high-yielding-us-property-after-quick-refurb/2011121352826">Property Observer reported</a> that the fund had paid more than double the most recent sales prices for one of its properties with 19 acquisitions among the 34 identified in the US Masters Fund prospectus where the latest purchase price sits substantially above the last sale price. 
Dixon says he is confident of the buying process and that there is “plenty of upside” in these purchases. 
The fund is currently trading at $1.67 valuing it at $102.8 million. It listed at $1.61.
</body></html>

Investors dry up as Dixon Advisory raises $31 million for US property fund in second capital raising 

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Economists are tipping the central bank to deliver a 25-basis-point cut to interest rates at its February 7 meeting, a move that would almost certainly boost the property market.
The futures market is pricing in a 99% probability that the RBA will cut rates when it next meets.
Westpac chief economist Bill Evans, who has arguably the best recent track record for forecasting rate movements, having called the November and December cuts in July, is sticking with his view that the Reserve Bank will cut the cash rate to 4% in February and then once more before the end of the year as part of a 100-basis-point easing cycle. 
Evans’ chief reasons for a February rate cut are weakening world growth, as well as domestic constraints. 
“The domestic economy faces headwinds: interest rates, the high dollar, stretched housing affordability, household debt and fiscal consolidation. 
“Together, these factors suggest the consumer, housing construction and public investment will restrain growth. In short, the risk is that growth will persist at a sub-trend pace for a little longer,” Evans says. 
If the RBA is looking for data to confirm a rate cut, the most recent housing credit and retail sales figures should provide the impetus. 
In November housing credit rose by just 0.5% to be 5.7% higher over the year, the weakest annual growth since records began in 1977, while in the lead-up to the Christmas sales retail turnover remained unchanged in November at $20.9 billion on a seasonally adjusted basis following 0.2% rise the previous month.
A February rate cut is also forecast by St George Bank’s chief economist Besa Deda, mainly as a result of continued uncertainty in Europe.
Deda says there are likely to be two cuts in 2012 but that external factors are likely to play a large part in determining what the RBA will do.
"Ultimately, how much cutting the RBA does in this easing cycle will depend significantly on European developments," Deda says in an investor’s note. “The deeper the European crisis, the more easing the RBA might need to do." 
A rate cut will be welcomed by many sections of the property market. 
Property Group Ray White booked $2.1 billion in sales in December, with chairman Brian White saying this was an even better than $2.4 billion worth of business done in November when compared on a sales-per-working-day basis. 
White says the result is “more proof that the recent reduction in interest rates is continuing to lift activity, giving confidence to purchasers that a continuing fear of more rate rises will not eventuate”.
Mortgage broker AFG recorded a 5.4% increase in mortgage sales in December 2011 compared with December 2010, with the strongest growth occurring in South Australia (44.8%), NSW (up 15.6%) and Queensland (7.7%).
This follows <a target="_blank" href="/news">AFG brokers writing $2.9 billion of mortgages in November, its highest such figure since March 2009</a>.
AFG also found that as interest rates have fallen, non-major bank lenders increased their share of lending to close a quarter of all loans, compared with an average of less than 20% over the past year.
“This trend will help keep rates competitive as we move into 2012,” says Mark Hewitt, general manager of sales and operations at AFG.
“If the expected rate reductions come through over the next quarter, we could see a very different lending environment, supporting the recovery of property markets across Australia.
“The rate cut has certainly stimulated demand.”
Further cuts in the cash rate are expected to stimulate more first-time home buyers.
Of the 300 first-home buyers surveyed by real estate website realestateview.com.au, more than half (57%) listed interest rate hikes as a major concern. 
The survey found that only 20% of buyers thought it was a good time to buy their first property. 
Later today, ANZ will make its first interest rate decision out of step with the RBA.
</body></html>

February rate cut tipped to boost Australian housing market

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

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

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