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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Foreign investors have spent a record $12 billion buying up Australian farmland and agricultural businesses over the past year, but have put off investing a further $14 billion until the outcome of a Senate inquiry in March 2012, a new report by Ferrier Hodgson says.
The purpose of the Senate inquiry is to determine whether the current foreign investment threshold of $231 million, the benchmark where transactions require the approval of Foreign Investment Review Board, should be adjusted since the vast majority of agribusiness transactions fall below this mark.
The inquiry kicked off in July and will make its findings know in March next year, having pushed back an earlier November 2011 deadline.
According to Ferriers, an argument against foreign investment on the basis of “food security” is hard to support.
“It is hard to imagine a day when Australia’s bountiful produce will be unable to meet domestic demand. Of signi?cant concern to the agribusiness sector are media reports suggesting that as much as $14 billion of potential foreign investment has been put on hold pending the outcome of the enquiry.”
“The delay or denial of that sort of investment would have a damaging impact on any industry. If nothing else, it has injected the sector with uncertainty about the future and clouded the outlook for many Australian agricultural businesses.
“As the emotive rhetoric surrounding the topic continues to ratchet up, we are waiting to see whether the Senate Committee’s report in March 2012 will suggest changes to the current national interest test and/or the current review limits for foreign investment.”
The influx of foreign funds has coincided in a turnaround in the fortunes of the sector over the past 12 months. <a href="https://www.propertyobserver.com.au/rural/a-land-registry-is-the-way-forward-in-the-foreign-ownership-debate/2011111052317" target="_blank">Some have called</a> for a <a href="https://www.propertyobserver.com.au/rural/time-to-fly-the-flag-for-rural-land-ownership-regulation/2011110952271" target="_blank">land registry of foreign investors</a>.
Ferrier Hodgson argues that foreign investment brings with it significant benefits including delivering “capital to a sector that sometimes struggles to ?nd funding from other sources”.
“This ?ows through the broader rural economy to provide regional spending and employment,” says Ferrier Hodgson.
In addition, foreign money also impacts on rural land values, “with the purchase prices offered by foreign investors providing a valuable exit strategy or succession plan for farmers looking to wind up their involvement in the sector”.
“At the same time, foreign investors can bring to regional communities foreign expertise and access to global markets. This is particularly valuable in the processing sector, where new markets and modern processes can breathe life into stagnant businesses that have failed to maintain pace with innovations in their speci?c niche.”
Significant foreign buyouts of the past 12 months have included CSR Sugar in NSW sold to Wilmar International of Singapore for $1.75 billion, wheat producer AWB sold to Agrium Inc of Canada for $1.2 billion, with its commodity business subsequently sold to US-based Cargill for $79 million, and 252,000 hectares of farmland in Victoria’s Western District sold to Canada’s Alberta Pension Fund for $415 million.
Thai sugar giant Mitr Pohl is currently seeking shareholder approval to <a target="_blank" href="https://www.propertyobserver.com.au/rural/thai-sugar-giant-mitr-pohl-seeks-to-take-over-125-year-old-queensland-sugar-company-msf-sugar/2011121252789">acquire north Queensland-based MSF Sugar, which dates back to 1886, for $313 million</a>. If successful, the Thai company will acquire more than 6,000 hectares of agricultural land, four sugar mills and other infrastructure assets.
Other Australian agribusiness acquired by offshore entities in the last 12 months:
<ul>
<li>Tully Sugar in Queensland sold to China Oil and Food for $136 million.</li>
<li>8,500 hectares of farm land in Victoria’s Western District sold to Hassad Foods of Qatar for $35 million.</li>
<li>Larundel Estate in Victoria sold to Chinese interests for $14 million.</li>
<li>The former Kyabram Dairy Research centre in Victoria sold to Chinese interests for $1.8 million.</li>
<li>A Chinese government-controlled mining entity purchased 43 farms near Gunnedah, New South  Wales, in relation to potential coal deposits, for an  unknown price.</li>
<li>Mount Falcon Station in New South Wales sold to Chinese interests for an unknown price .</li>
<li>Great Southern land group sold four Victorian  properties to Chinese interests for an unknown price.</li>
<li>AAco, Australia’s oldest continuously operating  company, sold 19.9% to an international conglomerate owned by Middle Eastern and Malaysian interests.</li>
</ul>
Foreign investment is nothing new to the Australian agribusiness sector as British, American, New Zealand and Japanese companies have held signi?cant investments for decades. It is not surprising that overseas entities recognise Australia as an attractive place to do business because it has:
? A stable economic and political system
? A reputation for high quality and safe production
? High productivity and well-developed managerial skills
? Close proximity to Asian markets
? A strong history of animal health (eg: no foot-and mouth disease)
? Counter-seasonal to the northern hemisphere
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Foreign investment in Aussie farmland on hold

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Outspoken economist and consistent housing bubble denier Rory Robertson says those who continue to rent in the hope that prices will crash are backing the wrong horse.
Responding to commentary from <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/blowing-away-the-bubble-deniers/2011121652871" target="_blank">Deakin University academic Philip Soos that Australia</a> has a housing bubble, Robertson labelled him “a know-it-all preaching doom and gloom”.
Writing for academic blog The Conversation, Soos, a researcher at Deakin University's School of International and Political Studies, provides four key arguments that point to a housing crash in the near future.
Firstly, he provides numerous examples to show that not having non-recourse borrowing in Australia (as exists in some states in the US and other parts of the world) has little bearing on preventing a house price crash; secondly he says historically house prices in Australia have crashed eight out of the nine times after there have been housing bubbles; thirdly he says a housing shortage is not causing house prices to rise; and lastly says Australian banks have not been conservative lenders, which is why we have mortgage debt of $1.2 trillion.
Writing on Business Spectator, Robertson admits that the days of “easy capital gains” resulting from “the big structural downshift in inflation and nominal interest rates in the early 1990s and the big structural increase in credit availability as banks were deregulated” are over, but he denies that Australian households are excessively geared because “even now, only about one-third of households have a mortgage (one-third own outright and one-third rent)”.
“In any case, the fact that average home prices are unlikely to surge higher from here does not mean they are destined to collapse. With the one-off structural shift higher now complete, average home prices will tend to rise and subside in cycles over time,” Robertson says
“The most-likely scenario,” Robertson says, “is that real home prices will trend gradually higher over our lifetimes as real incomes rise, and two-thirds of our population continues to compete aggressively to live on the best-located bits of ground near the CBDs of our seven coastal capitals and Canberra.”
He says many of the “doomsters don't actually know very much about local housing and home lending markets, don't own their own home or – commonly – both”.
“Meanwhile, most everyday people choose to buy a home they can afford to fund with a mortgage; then show up to work and happily pay their mortgage for the next 25 to 30 years. Over time, they enjoy a secure home within which to raise kids, and later on have a buffer that protects them from poverty in old age,” he says.
“Ask the dopey bubblemen about how much of their old-age pensions will be left for living expenses (including tasty dog food?) once (expensive) rent is paid. If they had a clue, the know-it-alls would realise that the relative tightness of rental markets – capital-city rent increases have averaged 5.8% per annum over the past five years – is a hint they are barking up the wrong tree.”
“Good luck to those sitting ‘short’ and renting while waiting for home prices to collapse. Just make sure you don't hold your breath.”
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No such thing as an Australian housing bubble: Rory Robertson

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Regional hotel operators must find ways of enticing Chinese visitors to coast and country resorts or risk another decade of struggle, according to the RBA’s December quarter bulletin.




The RBA forecasts that growth in Chinese visitors alone is expected to contribute about one-third of the growth in Australia’s tourism export earnings until 2020. 



Between 2001 and 2011, Chinese visitor numbers have grown by 13.4% annually, contributing 16.4% to annual revenue while Indian arrivals have increased by 12.3% annually, contributing 7.7% to tourism revenue. In comparison, visitors numbers from the US and UK have not grown over the last decade.
<img src="/images/stories/tourismchart.gif">
According to the Tourism Forecasting Committee, the share of spending by international visitors in total tourism expenditure in Australia is forecast to continue to rise over the next decade, driven principally by strong arrivals from Asia.
“This poses a challenge for the tourism industry in leisure and regional areas, which have at least to date had limited exposure to the growing segments of the inbound tourism market compared with Australia’s capital cities,” says the RBA.
According to the central bank, overseas visitors prefer to stay in capital cities (and capital city hotels) due “the importance of capital cities as major international gateways to Australia”. 
“Capital cities have benefited from a rising share of overseas visitor expenditure as spending by international visitors in regional areas has declined somewhat in recent years in real terms.” 
“This trend is consistent with the strong growth in Chinese visitors – who demonstrate a strong propensity for travel to capital cities – and the decline in Japanese tourists that has had a more pronounced effect on overall tourism demand in some regional destinations.
“For instance, in 2010-11, Sydney and Melbourne were the most popular destinations for Chinese visitors (as measured by visitor nights), whereas Japanese visitors have demonstrated a relatively stronger preference for travel to Queensland’s beach destinations, notably the Gold Coast and Tropical North Queensland (TNQ),” says the RBA. 
According to the <a href="https://www.propertyobserver.com.au/leisure/queensland-tourism-industry-needs-government-help-midwood/2011100551817" target="_blank">August Midwood Report</a>, Queensland regional and leisure areas heavily dependent on overseas tourists suffered big drops in revenue when comparing the March quarter of 2011 with the March quarter of 2010.
Accommodation takings for Whitsunday Island resorts were down 16% compared with the same time last year, while takings on Great Barrier Reef islands and adjacent mainland areas (including the likes of Port Douglas) were down 21% over this time frame.
 
<img src="/images/stories/tourismgraph.gif">
 
 
 
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More pain for regional hotels as Chinese tourists prefer city over country: RBA

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ANZ has denied reports that it and other Australian banks have been ordered by APRA to test how they would cope if the European meltdown spread to Australia.
An article in the Australian Financial Review said banks had been given one week to model the impact of the unemployment rate climbing to 12%, house prices crashing 30% and commercial property values falling 40%.
A spokesperson for APRA said the regulator had not been commenting on the story but referred Property Observer to a number of earlier articles it has published on the subject.
In December 2010, APRA published a paper titled “Stress-testing for authorised deposit-taking institution,” where it called stress-testing “a valuable tool that has been used by financial and non-financial institutions for many years to manage their risks”.
“APRA uses stress-testing in its own supervisory activities across all the industries it regulates. At times, APRA coordinates these stress-tests with the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ),” the regulator said in the same paper.
Reports that banks are being asked to model how they would cope in such a crisis follow a speech made by deputy Reserve Bank governor Ric Battelino this week, where he warned that there were “various channels through which developments in Europe could affect Australia including financial linkages, trade linkages and confidence and wealth effects”.
It also follows a week of major bank AGMs where the subject of Europe was raised repeatedly.
At the Westpac AGM, chief executive Gail Kelly warned there was a possibility of credit rationing if conditions in Europe remained strained. Since the start of the year, European banks have been undergoing stress tests following the formation of the European Banking Authority.
Last week, the EBA called on European regulators to require banks to “strengthen their capital positions by building up an exceptional and temporary capital buffer against sovereign debt exposures”.
The AFR quotes bank sources as saying “there is no suggestion APRA is concerned about existing credit quality and assessment.
“Rather, the authority is seeking to understand the impact of a severe external shock."
 
 
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ANZ denies carrying out APRA “stress tests”

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ANZ chief executive Mike Smith says the bank is working on explaining its decision to “decouple” its interest rate decisions from monthly cash rate announcements made by the Reserve Bank.
This follows the bank’s announcement on December 8 (following its decision to pass on the December 6 rate in full) that in future pricing changes for retail and small business variable interest rates will be made on the second Friday of each month because ‘bank funding costs are now largely unrelated to movements in the Reserve Bank’s Official Cash Rate”.
Speaking at the bank’s AGM in Sydney today, Smith says it must explain its new policy “thoroughly”.
“We have got our boffins working on that. We must be transparent and clear about how we calculate this rate,” he says.
Smith says banks themselves are to blame for reinforcing the false public perception that there is a link between the RBA cash rate and bank variable mortgage rates.
“It will be a communication exercise.”
The bank though is unlikely to use Westpac’s “banana smoothie” analogies to explain its decision with Smith saying the best way to explain its new policy will be to ‘go back in time and the show disconnection between the cash rate and the variable mortgage rate.
“In the late 1980s the cash rate was higher than mortgage rate,”
In December 2009, Westpac put together a banana smoothie animated video, where it tried unsuccessfully to explain how the increase cost of wholesale funding (bananas) was pushing up the price of mortgages (banana smoothies) after the bank raised mortgage rates by 45 basis points following an RBA increase of 25 basis points.
 
 
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No banana smoothies, but ANZ to explain its new rates policy

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NSW stamp duty revenues are forecast to rise by 22% over the next four years, while Victoria is forecasting a more modest 9% increase in earnings from land transfers, according to mid-year state budget updates.
The forecasts also highlight how dependent state governments are on property taxes, which account for around a third of their taxation revenue annually.
At the recent Canberra Tax Forum lobbying groups such as the Australian Housing and Research Institute called on the government to scrap stamp duties in favour of a broad-based land tax to improve housing affordability –  as suggested by the 2010 Henry Review.
Given how dependent state government are on property taxes, scrapping them is likely to be heavily resisted.
The NSW government earned $4.05 billion in stamp duty revenue in the 2010-11 financial year, with an additional $2.28 billion earning in land taxes.
Stamp duty revenue is forecast to dip next year falling to $3.65 billion as buyers and builders of new homes take advantage of concessions available in the NSW Home Builders Bonus scheme available up until July 1, 2012.
Revenue is forecast to increase over the next three years, earning the state $4.27 billion in 2012-13, $4.72 billion in 2013-14 and $5.16 billion in 2014-15.
In total property taxes (including land tax revenue) accounted for 31% of revenue earned by the state in 2010-11 a figure which will rise to 33% of revenue by 2014-15.
In its 2011-12 Half Yearly Review, the NSW government expects a recovery in dwelling investment to continue over the next two years, albeit at a more moderate pace than that seen in 2010-11.
“With solid construction activity in the September quarter and trend private dwelling approvals increasing moderately, the near-term outlook is slightly more positive than at budget time. This is despite softness in the broader housing market. Dwelling investment over the next two years is expected to be supported by low vacancy rates and rising rental prices, along with growth in population and household incomes,” the review says.
The Victorian government is forecasting stamp duty earnings of $3.76 billion in 2011-12 with a modest rise to $3.78 billion in 2012-13 before accelerating to $3.94 billion in 2013-14 and reaching $4.12 billion in 2014-15.
Total property tax revenue will increase from $5.45 billion to $6.14 billion over the next four years accounting for 34% of total revenue earned by the state.
 
 
 
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NSW stamp duty forecasts suggests strong housing market recovery by 2014-15

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Almost one in two south-east Queensland properties sold at auction in the final official week of the season, boding well for the market in 2012, according Jason Andrew Auctioneers.
The clearance rate for the week ending December 12 climbed to 48%, matching a result achieved in the previous week and up from a November clearance rate of 39%.
The auction house put $50 million worth of real estate under the hammer across the seven days, with $23.6 million successfully sold.
“Of particular note was the Brisbane commercial clearance rate of 100%, and the residential clearance rate across Brisbane and Gold Coast also strong at 60%,” says director Jason Andrew.
Buyer activity also picked up significantly, with the average number of buyer registrations per auction at 2.67%, two and a half times the year-to-date result and six and a half times the rate for 2010.
The percentage of forced sales was also high at 63%, with the total number including 28% mortgagee in possession sales and a further 14% of vendors who cited financial stress as their selling motivation.
Andrew says the week was unusually busy, with a high number of auctions and overwhelmingly willing buyers and sellers.
“This has been the best week of the year – while there will still be a smaller volume of properties go to auction this week, the official auction market has ended on a high.”
“Buyers have seen good opportunity at current prices and sellers have accepted the challenging market conditions.”
“Traditionally December is a month where the tug-of-war between buyers and sellers is lessened, with both parties more motivated to finalise a sale.”
“This year, with uncertain terrain ahead in 2012, that sentiment has been stronger than ever.”
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South-east Queensland auction season ends on a high

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A modest, patchy housing recovery is on the cards for 2012, with houses and apartments in suburbs close to CBDs and period houses the best placed for growth, according to Monique Sasson Wakelin, managing director of Wakelin Property Advisory.
“The elements are in place for moderate property price growth in 2012 in our capital cities,” she says. “Growing incomes, falling interest rates, improved affordability and low inflation and unemployment will underpin demand.  Where supply remains constrained price growth will follow.”
Sasson Wakelin identifies suburbs two to 12 kilometres from the CBD in Sydney, Melbourne and Brisbane and one to five kilometres from the CBD in other capitals as those where supply-constrained markets are most prevalent.
“Despite efforts to encourage in-fill developments in our inner suburbs, the thin volume of new supply is insufficient to match increased demand deriving from a growing population,” she says.
“The [supply] gap is most acute for period housing. By definition, no more Victorian or Edwardian houses are being built and neither are Art Deco or 1930s to 1970s apartments. This architecture is highly sought after by home buyer and investors alike.”
Wakelin is less optimistic about Melbourne high-rise apartments and outer-fringe areas. “Both the outer-fringe and the high-rise sectors in Melbourne suffer from a glut of excess supply over demand due to the full pipeline of new developments in these areas,” she says. “There may be little or no capital growth in these areas in 2012.”
She does not anticipate a dramatic start to the 2012 market. “Don’t count on fireworks or bidders competing aggressively in February when metropolitan auctions recommence.
“After 18 months of softness in the property market, understandably many prospective buyers are looking for a signal that no further price cuts are likely before they jump in.”
Sasson Wakelin believes a gradually improving auction clearance rate may be that sign in the Melbourne market.
“The clearance rate has been hovering in the low 50s for several months in Melbourne. If it starts creeping towards and beyond 60%, this may be the cue for others to buy.  We may see an orderly rush to the entrance of the property market in April and May.”
“Barring the economic or natural disasters that plagued us in 2011, I envisage moderate capital growth of between 2% and 5% for metropolitan Melbourne, most likely arising in the second half of 2012.”
The major risk factor facing property in 2012, she says, remains international economic conditions.
“Should the eurozone crisis deteriorate then this may see capital growth deferred and even result in some further softening in prices.  However, I would expect the inner and middle suburban established property markets to remain insulated because of their innate resilience against economic shocks and further Reserve Bank rate cutting.”
 
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Modest, patchy housing market recovery forecast for 2012: Monique Sasson Wakelin

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Asian buyers are vital to the success of future residential developments and developers must engage with them, says Morry Schwartz, head of Melbourne-based property developer Pan Urban. 
Speaking to Property Observer, Schwartz says Chinese buyers from countries like Malaysia and Indonesia see a country like Australia as a safe haven for the long term. 
“Sometimes Chinese people who are living in Malaysia or Indonesia feel slightly insecure about buying where they live because there may be anti-Chinese sentiment in those countries,” he says. 
Schwartz also believes Australia offers a more stable investment option than mainland China. 
“In mainland China there is a strange political combination of capitalism in a socialist environment, not necessarily the most stable. 
“People, who have wealth – some of them great wealth – worry about nationalism,” he says. 
Furthermore, while Australian investors tend to be more insular in nature and are not inclined to buy an apartment in Hong Kong, Schwartz says Asian buyers don’t think it’s strange to buy in countries like Australia or Canada. 
“And there is the education factor. Parents like to buy an apartment for their child who is studying at RMIT,” he says. 
His comments following the launch of Juwai.com, promoted as the world’s largest international property search and information platform for Mandarin-speaking Chinese consumers. 
The site has more than 1 million property listings from over 80,000 agents and developers in the US, Australia, Canada, the United Kingdom and Japan. 
Schwartz says there a “huge need” for such a site. 
“Australian agents are looking for buyers, and Chinese buyers want to spend billions on Australian property. But getting the two groups together before Juwai cost a fortune. 
“Agents had to travel to China for property expos, hire Mandarin-speaking staff or to split their commissions with Chinese agents — none of which is affordable in this marketplace. 
Taken as a group, local and offshore Asian buyers currently account for about 60% of enquiries and purchases at Pan Urban's developments – “up substantially from a few years ago,” Schwartz says. 
Schwartz says one- and two-bedroom apartments appeal to Asian buyers because they are more affordable. 
“They like urban and inner-city apartments and also buy in areas such as Doncaster and Springvale where local Chinese communities are based,” he says. 
Pan Urban’s major Melbourne project is the Lacrosse in Docklands, featuring two intersecting apartment blocks currently under construction. 
The majority of the 312 apartments in stage one of the development have already sold, with many sold to Asian buyers. Stage two, comprising 259 apartments, is also expected to attract strong interest from Asian buyers. 
Schwartz says Australian developers and agents are gaining a stronger understanding of the Chinese markets. 
“There is a moving together from two directions. 
"You are not doing a good job at selling real estate in Australia today if you're not marketing to the Chinese buyer,” he says.
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Asian buyers vital to Australian property market: Morry Schwartz

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Real estate group Ray White racked up $2.4 billion worth of residential sales in November, its best result since March.
Group chairman Brian White says the overall result was also slightly ahead of what it achieved in November 2010 and “proof that the market is far more robust than some expected”.
A surprise strong performer was the Ray White Gold Coast office, which for the first time this year recorded unconditional sales in excess of $100 million.
“Nothing remarkable a few years ago, but almost twice more than some recent months. Look out January,” says White.
“Sydney provided some outstanding results. The number of ‘personal bests’ surprised us, bearing in mind market sentiment. Melbourne was stronger than it has been for a long time.”
“Our New Zealand numbers were again ahead of the same time last year – a traditional bellwether test for us,” he adds.
White says he is uncertain if the November rate cut helped drive sales to an eight-month high, but says the result was welcome nonetheless.
“[Following the rate cut] activity levels immediately improved. Open for inspection attendees jumped. Mind you, it wasn't all plain sailing.
“Anecdotal stories of young people putting off purchasing homes through ‘the crisis in Europe’ surprised me with their frequency.
“It's hard to remember a time when Europe would so dominate the behavioural patterns of Australians. Such is the remarkable uniqueness of our times,” he says.
According to White, the next RBA interest rate movement should be downwards.
“If any more re-setting of official interest rates is to occur, it will be on the down side."
“It is a powerful message that surges through a community. On the one hand, negativity, on the other hand, renewed confidence all meeting the thousands and thousands of transaction processes. Some vendors satisfied. Other vendors sadly disappointed.”
Among the highlights of the year was a successful Asian marketing tour, during which more than 20 residential sales were made to Indonesian purchasers in the new Top Ryde City project north of Sydney.
“In fact, all of Asia seems to be selling to all the rest of Asia. For the first time in memory, Japanese developers are marketing Tokyo housing projects directly to Australian citizens through the Australian press,” White says.
“The giant Dubai developer Majid is set to market their massive Al Futtaim project in Beirut to the Lebanese community in Australia.”
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Ray White posts best results in eight months and says Gold Coast office surprise star

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;

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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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