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As we look back on 2011, Property Observer is republishing some of our most noteworthy stories of the year.
 
Property investment commentator Monique Sasson Wakelin has slammed the New Jersey rental properties being acquired by the Australian-listed US Masters Residential Property Fund managed by Dixon Advisory. 
Sasson says Australian investors are mistaken if they believe the marketing literature that highlights low prices (about US$170,000) and “attractive” rental yields (up to 12%)<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" target="_blank"> of the properties it has acquired in Hudson County, New Jersey, across the river from Manhattan. </a>
She says investments made by the fund demonstrate a “worrying lack of understanding of what constitutes investment-grade property”, and “ongoing zeal for financial engineering and lack of property knowledge”. 
As a consequence, she says many “unsuspecting Australian retail investors” have bought “some very speculative assets”. “By going for high yield and low prices, the fund has chosen poor assets in highly compromised locations with no scarcity value,” she says in an article for <a href="https://www.eurekareport.com.au/">The Eureka Report</a>. 
“Consequently, the prospects for sustained capital growth are severely limited and there is the high possibility of further capital loss because the recovery and bounce back will be slow compared to other parts of New York City.” 
“These properties are cheap because no one else wants to buy them and cheap does not equal a good investment. Why invest in something that the vast majority of the local population eschews?” 
<img src="/images/stories/moniqueus2.jpg">
Her heavy criticism of the fund comes after its recent <a href="https://www.propertyobserver.com.au/overseas/dixon-advisory-attracts-815-more-aussies-to-take-a-punt-on-us-housing-investment/2011112952603">successful second round capital raising campaign</a>, which added a further $26.9 million to the $70 million invested ahead of its listing on the small cap National Stock Exchange at the end of June. 
A second opportunity to acquire shares in the fund closed yesterday, with a third offer closing on January 9. 
The fund has to date snapped up 55 properties for $11.18 million and exchanged contracts on a further 106 (worth an additional $20 million) with annualised net yields generally ranging from 8.0% to 12%.
Wakelin says there is clearly merit in buying at the bottom of the US residential property cycle in areas such as Manhattan, the inner suburbs of Boston or San Francisco, but not in Jersey City.
Having visited New York several times and recently back from her annual October trip, Wakelin says she was “deeply alarmed” to discover the fund had chosen to focus its buying in Hudson County, New Jersey “an area not exactly well known for prime real estate”. 
She also criticises the marketing of the properties as “New York metropolitan”, which she says in not accurate when the properties are in New Jersey. 
“Americans refer to the ‘tri-state,’ the contiguous parts of New Jersey, Connecticut and New York that are commuting distance from Manhattan. 
“Commuting distance, yes, but not within the New York metro area. As for the short commute, try driving it or being stuck on the subway during rush hour, especially if something goes wrong. It’s no 15-minute commute!” 
She says a visit to the area in mid-October confirmed her fears about “the dangers of this offer”. 
“Hudson County is doing it tough. There is little sense of resilience or prosperity and vacant houses are common.
“But this shouldn’t be a surprise to anyone as, according the US Bureau of Statistics, in April 2011 unemployment in Hudson County was 10.3%, compared to 8.7% nationally. This place is in a recession.” “Worse, it is not merely a case that Hudson County is just going through a bad patch and that its long-term prospects are rosy.” 
Wakelin says the “tightly cropped photographs” in the Dixons product disclosure statement do not show the streets of Hudson County, which “contain highly variable, non-descript, and often unattractive architecture”. 
“Any potential investor is well advised to use Google Maps to see the broader vista around these properties!” 
She also the prospect of Hudson County being gentrified in the coming years is very low because just 30% of residents are home owners. “Gentrification occurs when there is a critical mass of incoming first-home buyers or upgraders, who identify strong future potential because a locale is underpinned by an intense and diverse array of services and infrastructure. They renovate the properties and their discretionary disposable incomes draw in boutique shops and restaurants. “This can turn a suburb from down-at-heel to trendy in a few years and drive strong capital growth in the immediate future. 
“Instead Hudson County is an area of cheap, unattractive properties in a high unemployment context with a transient population of tenants and little in the way of amenity. Unfortunately, the fund confuses ‘cheap and nasty’ with ‘opportunity’. 
And she says the fund has contradicted its mission to invest in “properties which have the potential to achieve superior risk-adjusted income and long-term capital appreciation by investing in an area which the fund itself acknowledges suffers from “underlying oversupply, foreclosures, short sales and distressed sales”.
“A parcel of apartments in parts of Manhattan – say Tribeca or Murray Hill – would be far better at fulfilling the fund’s investment mission.”
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Aussie fund's New Jersey US properties 'cheap and nasty': Monique Sasson Wakelin

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On a seasonally adjusted basis, new house starts declined by 2.5% in the September quarter to 22,290 following a fall of 1.6% in the June quarter, according to the latest dwelling commencement figures released by the ABS.
This was the seventh straight quarter that new housing starts have declined, reflecting the current depressed state of new house construction.
The last time new house starts increased was in the December 2009 quarter, when they rose to just under 29,900 new starts.
In raw terms, the largest rises in private sector house commencements were experienced in the Northern Territory (11.4%), Queensland (10.8%) and Western Australia (5.3%), while the largest falls occurred in Tasmania (-17.8%), South Australia (-14.9%) and the Australian Capital Territory (-12.1%).
The more volatile other residential building (flats, units, attached townhouses, villas and terrace houses, etc) declined by 12.2% in the September quarter to 12,198 properties following a fall of 6.1% in the June quarter.
Overall, the construction of new housing fell by 6.2% in the September quarter.
In raw terms, the total number of dwelling units commenced fell 3.3% in the September quarter to 37,000.
Queensland (+16.4%) and the Northern Territory (+30.7%) were the only states or territories to experience an increase in dwelling unit commencements this quarter.
The largest decreases were seen in Tasmania (-18.5) and the Australian Capital Territory (-9.5%)
 
 
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New house starts decline for seventh straight quarter: ABS

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The two interest rate cuts in November and December are expected to push mortgage arrears rates down further in 2012 as Australians continue to do a better job of paying off their mortgages, according to the latest Fitch Dinkum Index on mortgage delinquencies.
Just 1.52% of prime residential mortgage-backed securitised (RMBS) mortgages were more than 30 days in arrears in the September quarter, a drop of 17 basis points from the 1.69% recorded in June 2011, according to the Fitch’s 30+ Days RMBS Index.
"The stable mortgage performance in the third quarter of 2011 reflects that households have adjusted to the payment stresses of the fourth quarter of 2010 and the first quarter of 2011.
“Mortgage performance is expected to continue its improvements in the fourth quarter of 2011, further assisted by the recent interest rate decreases in November 2011, with the December 2011 decrease having more of an impact in the first quarter of 2012," says Courtney Miller, analyst in Fitch's structured finance team.
<img src="/images/stories/fitchdec13.gif">
Across the RMBS sector, the decrease in arrears was predominantly in the 30 to 59 days and 60 to 89 days delinquent buckets – a trend expected to continue following no rate increases this year.
The Fitch Dinkum 90+ Days RMBS Index (the Dinkum 90+)decreased by 4 basis points to 0.63% in the third quarter of 2011 from 0.67% in the second quarter of 2011. The decrease was in line with expectations.
Thirty day-plus arrears rates for low-doc loans (aimed at the self-employed and charged at higher rates) were at 5.30% at September 2011, down eight basis points from 5.38% in June 2011.
The 90-plus-day low-doc delinquency ratio reached its highest peak since inception in the September 2011 quarter rising to 2.87%, “proving that low-doc borrowers remain under pressure in making mortgage payments”.
Non-conforming low-doc borrowers' 30+ days delinquencies decreased by 198 basis points to 13.85%, returning to December 2007 levels.
Non-conforming low-doc loans are provided for credit-impaired borrowers at a significantly higher rate of interest, and Fitch says the decrease in the September quarter was “primarily due to stable interest rates and the settlement of defaulted loans”.
Total low-doc 30-plus-day delinquencies decreased 18 basis points to 6.37%, down from record highs of 6.74% in the first quarter of 2011.
“Fitch continues to believe that low-doc borrowers captured in the Dinkum Index are more likely to be affected by monetary policy decisions.
“There is the expectation that these borrowers will benefit from the recent rate cuts in the fourth quarter of 2011 and from the general health of the Australian economy,” the latest report says.
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Rate cuts will drive down mortgage arrears even further: Fitch

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The inner city of Perth, which has about 15,000 residents, is experiencing the second highest rate of housing stress of all Perth municipalities, according to a new report by lobbying group Australians for Affordable Housing. 
AAH defines housing stress as being the lowest 40% of equivalised household incomes who spend more than 30% of their income on housing costs. 
Nearly one in five (17%) inner-city Perth residents fall into this category (as well as an equal proportion in Mosman Park, Mandurah and Victoria Park) in a list headed by Kwinana, a suburb about 30 kilometres south of the CBD. 
These five suburbs make up the top five housing stressed council areas, according to AAH. 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="187" valign="top">
 
</td>
<td width="142" colspan="2" valign="top">
Housing Stress
</td>
<td width="132" colspan="2" valign="top">
Mortgage Stress
</td>
<td width="141" colspan="2" valign="top">
Private Rent Stress
</td>
</tr>
<tr>
<td width="187" valign="top">
LGA Name
</td>
<td width="142" colspan="2" valign="top">
%          Number
</td>
<td width="132" colspan="2" valign="top">
%         Number
</td>
<td width="141" colspan="2" valign="top">
%          Number
</td>
</tr>
<tr>
<td width="187" valign="top">
Kwinana (T)
</td>
<td width="63" valign="top">
20
</td>
<td width="78" valign="top">
2219
</td>
<td width="57" valign="top">
20
</td>
<td width="76" valign="top">
1047
</td>
<td width="66" valign="top">
38
</td>
<td width="75" valign="top">
938
</td>
</tr>
<tr>
<td width="187" valign="top">
Mosman Park (T)
</td>
<td width="63" valign="top">
17
</td>
<td width="78" valign="top">
734
</td>
<td width="57" valign="top">
9
</td>
<td width="76" valign="top">
83
</td>
<td width="66" valign="top">
35
</td>
<td width="75" valign="top">
552
</td>
</tr>
<tr>
<td width="187" valign="top">
Perth (C)
</td>
<td width="63" valign="top">
17
</td>
<td width="78" valign="top">
1397
</td>
<td width="57" valign="top">
10
</td>
<td width="76" valign="top">
216
</td>
<td width="66" valign="top">
26
</td>
<td width="75" valign="top">
985
</td>
</tr>
<tr>
<td width="187" valign="top">
Victoria Park (T)
</td>
<td width="63" valign="top">
17
</td>
<td width="78" valign="top">
2575
</td>
<td width="57" valign="top">
10
</td>
<td width="76" valign="top">
468
</td>
<td width="66" valign="top">
32
</td>
<td width="75" valign="top">
1806
</td>
</tr>
<tr>
<td width="187" valign="top">
Mandurah (C)
</td>
<td width="63" valign="top">
17
</td>
<td width="78" valign="top">
4885
</td>
<td width="57" valign="top">
17
</td>
<td width="76" valign="top">
1419
</td>
<td width="66" valign="top">
42
</td>
<td width="75" valign="top">
2945
</td>
</tr>
<tr>
<td width="187" valign="top">
Wanneroo (C)
</td>
<td width="63" valign="top">
16
</td>
<td width="78" valign="top">
9041
</td>
<td width="57" valign="top">
17
</td>
<td width="76" valign="top">
4965
</td>
<td width="66" valign="top">
37
</td>
<td width="75" valign="top">
3388
</td>
</tr>
<tr>
<td width="187" valign="top">
Armadale (C)
</td>
<td width="63" valign="top">
16
</td>
<td width="78" valign="top">
3610
</td>
<td width="57" valign="top">
17
</td>
<td width="76" valign="top">
1621
</td>
<td width="66" valign="top">
40
</td>
<td width="75" valign="top">
1654
</td>
</tr>
<tr>
<td width="187" valign="top">
Belmont (C)
</td>
<td width="63" valign="top">
16
</td>
<td width="78" valign="top">
2458
</td>
<td width="57" valign="top">
14
</td>
<td width="76" valign="top">
667
</td>
<td width="66" valign="top">
30
</td>
<td width="75" valign="top">
1314
</td>
</tr>
<tr>
<td width="187" valign="top">
Swan (C)
</td>
<td width="63" valign="top">
16
</td>
<td width="78" valign="top">
6453
</td>
<td width="57" valign="top">
17
</td>
<td width="76" valign="top">
3375
</td>
<td width="66" valign="top">
34
</td>
<td width="75" valign="top">
2359
</td>
</tr>
<tr>
<td width="187" valign="top">
Gosnells (C)
</td>
<td width="63" valign="top">
16
</td>
<td width="78" valign="top">
6169
</td>
<td width="57" valign="top">
17
</td>
<td width="76" valign="top">
3015
</td>
<td width="66" valign="top">
35
</td>
<td width="75" valign="top">
2580
</td>
</tr>
<tr>
<td width="187" valign="top">
Subiaco (C)
</td>
<td width="63" valign="top">
15
</td>
<td width="78" valign="top">
1366
</td>
<td width="57" valign="top">
7
</td>
<td width="76" valign="top">
130
</td>
<td width="66" valign="top">
30
</td>
<td width="75" valign="top">
1071
</td>
</tr>
<tr>
<td width="187" valign="top">
Fremantle (C)
</td>
<td width="63" valign="top">
15
</td>
<td width="78" valign="top">
1996
</td>
<td width="57" valign="top">
12
</td>
<td width="76" valign="top">
441
</td>
<td width="66" valign="top">
32
</td>
<td width="75" valign="top">
1039
</td>
</tr>
<tr>
<td width="187" valign="top">
Bayswater (C)
</td>
<td width="63" valign="top">
15
</td>
<td width="78" valign="top">
3934
</td>
<td width="57" valign="top">
13
</td>
<td width="76" valign="top">
1149
</td>
<td width="66" valign="top">
33
</td>
<td width="75" valign="top">
2327
</td>
</tr>
<tr>
<td width="187" valign="top">
Stirling (C)
</td>
<td width="63" valign="top">
15
</td>
<td width="78" valign="top">
12852
</td>
<td width="57" valign="top">
13
</td>
<td width="76" valign="top">
3455
</td>
<td width="66" valign="top">
32
</td>
<td width="75" valign="top">
7671
</td>
</tr>
<tr>
<td width="187" valign="top">
Canning (C)
</td>
<td width="63" valign="top">
15
</td>
<td width="78" valign="top">
4908
</td>
<td width="57" valign="top">
14
</td>
<td width="76" valign="top">
1656
</td>
<td width="66" valign="top">
32
</td>
<td width="75" valign="top">
2613
</td>
</tr>
<tr>
<td width="187" valign="top">
Cockburn (C)
</td>
<td width="63" valign="top">
14
</td>
<td width="78" valign="top">
4949
</td>
<td width="57" valign="top">
14
</td>
<td width="76" valign="top">
2214
</td>
<td width="66" valign="top">
34
</td>
<td width="75" valign="top">
2083
</td>
</tr>
<tr>
<td width="187" valign="top">
Bassendean (T)
</td>
<td width="63" valign="top">
14
</td>
<td width="78" valign="top">
866
</td>
<td width="57" valign="top">
13
</td>
<td width="76" valign="top">
313
</td>
<td width="66" valign="top">
34
</td>
<td width="75" valign="top">
424
</td>
</tr>
<tr>
<td width="187" valign="top">
South Perth (C)
</td>
<td width="63" valign="top">
13
</td>
<td width="78" valign="top">
2598
</td>
<td width="57" valign="top">
10
</td>
<td width="76" valign="top">
534
</td>
<td width="66" valign="top">
28
</td>
<td width="75" valign="top">
1723
</td>
</tr>
<tr>
<td width="187" valign="top">
Vincent (T)
</td>
<td width="63" valign="top">
13
</td>
<td width="78" valign="top">
1807
</td>
<td width="57" valign="top">
7
</td>
<td width="76" valign="top">
330
</td>
<td width="66" valign="top">
26
</td>
<td width="75" valign="top">
1240
</td>
</tr>
<tr>
<td width="187" valign="top">
Kalamunda (S)
</td>
<td width="63" valign="top">
12
</td>
<td width="78" valign="top">
2483
</td>
<td width="57" valign="top">
14
</td>
<td width="76" valign="top">
1258
</td>
<td width="66" valign="top">
33
</td>
<td width="75" valign="top">
1010
</td>
</tr>
<tr>
<td width="187" valign="top">
Claremont (T)
</td>
<td width="63" valign="top">
11
</td>
<td width="78" valign="top">
486
</td>
<td width="57" valign="top">
10
</td>
<td width="76" valign="top">
100
</td>
<td width="66" valign="top">
31
</td>
<td width="75" valign="top">
344
</td>
</tr>
<tr>
<td width="187" valign="top">
East Fremantle (T)
</td>
<td width="63" valign="top">
11
</td>
<td width="78" valign="top">
320
</td>
<td width="57" valign="top">
10
</td>
<td width="76" valign="top">
102
</td>
<td width="66" valign="top">
33
</td>
<td width="75" valign="top">
184
</td>
</tr>
<tr>
<td width="187" valign="top">
Joondalup (C)
</td>
<td width="63" valign="top">
11
</td>
<td width="78" valign="top">
6480
</td>
<td width="57" valign="top">
12
</td>
<td width="76" valign="top">
3125
</td>
<td width="66" valign="top">
30
</td>
<td width="75" valign="top">
2904
</td>
</tr>
<tr>
<td width="187" valign="top">
Melville (C)
</td>
<td width="63" valign="top">
10
</td>
<td width="78" valign="top">
3918
</td>
<td width="57" valign="top">
11
</td>
<td width="76" valign="top">
1354
</td>
<td width="66" valign="top">
29
</td>
<td width="75" valign="top">
2010
</td>
</tr>
<tr>
<td width="187" valign="top">
Cambridge (T)
</td>
<td width="63" valign="top">
9
</td>
<td width="78" valign="top">
927
</td>
<td style="text-align: left;" width="57" valign="top">
8
</td>
<td width="76" valign="top">
257
</td>
<td width="66" valign="top">
27
</td>
<td width="75" valign="top">
592
</td>
</tr>
<tr>
<td width="187" valign="top">
Nedlands (C)
</td>
<td width="63" valign="top">
9
</td>
<td width="78" valign="top">
725
</td>
<td style="text-align: left;" width="57" valign="top">
10
</td>
<td width="76" valign="top">
221
</td>
<td width="66" valign="top">
25
</td>
<td width="75" valign="top">
397
</td>
</tr>
<tr>
<td width="187" valign="top">
Cottesloe (T)
</td>
<td width="63" valign="top">
8
</td>
<td width="78" valign="top">
270
</td>
<td style="text-align: left;" width="57" valign="top">
8
</td>
<td width="76" valign="top">
60
</td>
<td width="66" valign="top">
18
</td>
<td width="75" valign="top">
171
</td>
</tr>
<tr>
<td width="187" valign="top">
Peppermint Grove (S)
</td>
<td style="text-align: left;" width="63" valign="top">
8
</td>
<td style="text-align: left;" width="78" valign="top">
49
</td>
<td style="text-align: left;" width="57" valign="top">
2
</td>
<td style="text-align: left;" width="76" valign="top">
3
</td>
<td style="text-align: left;" width="66" valign="top">
29
</td>
<td style="text-align: left;" width="75" valign="top">
44
</td>
</tr>
</tbody></table>
 “The high cost of housing in Perth is not new, but these figures show where the pain is being felt,” says AAH campaign manager Sarah Toohey. 
“Households in Kwinana are suffering the most, with 20% experiencing housing stress, while Mandura has the highest proportion of people in the rental market in housing stress (42%)”. 
“Areas such as Kwinana, Armadale, Mandurah and Wanneroo all have rates of rental stress over 36%, as well as high rates of mortgage stress with over 17% of home buyers in those areas under financial pressure.” 
“Housing is the single biggest cost-of-living issue in Australia. When low-income households spend more than 30% of their income on housing costs they are officially in housing stress. This means they have very little left over to cover other costs like food, transport, bills or money for emergencies.” 
“The WA government has produced an excellent housing strategy for the state. Now we need the state and federal governments to work together to fund that strategy and deliver the housing system that WA needs.” 
The lobby group is urging Perth residents in housing stress to join the campaign to convince governments to work together to address the housing crisis. 
“We need collective action at all levels of government to ensure that we fix our broken housing system, and take the pressure off families struggling with high housing costs and lack of affordable options,” Toohey says. 
Outside of the most stressed suburbs, the most recent REIA/Deposit Power Housing Affordability Report found that Western Australia recorded the largest improvement in housing affordability across the country, with the proportion of family income required to meet home loan repayments decreasing 2.3% to 23.9%. 
Western Australia is the third most affordable state or territory in which to buy a home. Over the year, housing affordability improved by 4.1%. 
The median family income increased 6% and the average monthly loan repayments decreased 3.2% during the September 2011 quarter, contributing to the improvement in housing affordability.
Rental affordability improved over the September quarter, with the proportion of income required to meet median rents decreasing 0.7% to 19.3%. Over the year, rental affordability improved by 1.8 percentage points.
 Picture by Michael Coghlan
 
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Mandurah residents among those with most housing stress in Perth

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The mini-boom in demand for fixed-rate mortgages might finally be at end, following the two rate cuts in November and December. According to ABS housing finance data for November, the proportion of total housing finance commitments taken out at fixed rates increased to 9.9% in October 2011 (from 7.9% in September 2011) as an increasing number of home owners looked to lock in some financial certainty. 
The graph (below) prepared by ANZ and based on the October ABS housing finance data, shows that demand for fixed rate mortgages is at a more than three-year high, with the mini-boom kicking off in early 2009 after the RBA had cut rates by 425 basis points between September 2008 and April 2009 and following Wayne Swan introducing his $42 billion stimulus package in February 2009.
<img src="/images/stories/fixedrates.gif"> 
 Source: ANZ
 This graph is expected to dip on the back of the two 25-basis-point interest rate cuts in November and earlier this month. All the major banks (with the exception of NAB, which passed on 45 out of the 50 basis points on offer) and the majority of second-tier lenders have passed on to borrowers. 
The impact of lower variable rates has already been seen in November figures from mortgage broker AFG (six weeks ahead of ABS data), with the percentage of fixed rate mortgages processed dropping from 20.4% to 17.2% in the space of a month. 
Damian Smith, CEO of comparison website RateCity.com.au, says the AFG Mortgage Index (which covers one out of every 10 mortgage written) is a “pretty good forward indicator”. 
“We assume that demand for fixed rate loans will start to ease,” he says. 
Smith says a similar trend has emerged in people clicking on fixed rate versus variable rate links on the RateCity.com.au website. 
“As people who click on our site are usually only thinking about buying a property, the clicks are a reasonable indicator of demand two or three months ahead. 
“The relative attractiveness of fixed rates is decreasing,” Smith says, pointing to the fact that fixed rates have dropped substantially less than variable rates over the last 60 days. 
“There has been some small movement in some fixed rates, but no 30- or 40-basis-point cuts,” he says. 
“Over the course of a cycle, consumers are generally better off with a variable rate loan, but there are windows of opportunity for taking out a fixed-rate loan.
“The last window was between August and November, following fixed rates falling very hard over the previous six months. 
“That window is now closed.” 
At the start of December, Mortgage Choice said demand for fixed rate mortgages had peaked after it released November figures showing that 20% of all new loan approvals were for fixed=rate loans, up on the six-month average of 16%, with the 12-month average at 14%. 
The franchise said demand for fixed rate loans doubled over the past year, peaking in November and reaching their highest level since April 2008.
Belinda Williamson, acting head of corporate affairs at Mortgage Choice, says while the franchise group has observed positive momentum in fixed-rate demand over the past six months, “the recent rate cuts and any future cuts due to such factors as increased domestic economic pressures or growing uncertainty surrounding the European debt crisis, may cause the demand for fixed rates to taper off as the gap between fixed and variable rates diminishes”. 
“Although lenders are fiercely competitive for business, industry commentators have suggested current home loan pricing is about as competitive as it is going to get,” she says. 
Smith says consumers might still consider a one-year fixed-rate loan as an alternative to a variable rate loan. 
“There are still some exceptionally cheap fixed rate loans out there,” he says. 
Currently, the cheapest one-year fixed loan is offered by Greater Building Society, which cuts its rate on this loan 5.69% on December 2. 
“There is no chance of getting variable loan at that rate. The lowest would be in the low 6% range,” Smith says. 
“A one-year fixed loan gives you a year’s comfort. It’s not a bad security blanket – it’s highly unlikely you would be worse off.” 
Currently the cheapest variable rate loans are:
 
<div align="center">
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company/provider
</td>
<td nowrap>
Rate
</td>
</tr>
<tr>
<td>
Ubank - UHomeLoan (for refinancing)
</td>
<td>
6.14%
</td>
</tr>
<tr>
<td>
bankmecu - Premium Unlimited
</td>
<td>
6.48%
</td>
</tr>
<tr>
<td>
Macquarie Bank - Classic P&amp;I Variable
</td>
<td>
6.64%
</td>
</tr>
<tr>
<td>
Yellow Brick Road - Gold Pathway Variable
</td>
<td>
6.69%
</td>
</tr>
<tr>
<td>
Gateway Credit Union - Low Rate Plus
</td>
<td>
6.70%
</td>
</tr>
</tbody></table>
</div>
 
Currently the cheapest three-year fixed loans are:
<div align="center">
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company 
</td>
<td nowrap>
Rate 
</td>
</tr>
<tr>
<td>
Citibank
</td>
<td>
5.94%
</td>
</tr>
<tr>
<td>
Heritage Bank
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
Homestar Finance
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
Pacific Mortgage Group
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
AMP Banking
</td>
<td>
5.99%
</td>
</tr>
<tr>
<td>
BoQ
</td>
<td>
5.99%
</td>
</tr>
</tbody></table>
</div>
 
Currently the cheapest one-year fixed loans are:
<div align="center">
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company 
</td>
<td nowrap>
Rate 
</td>
</tr>
<tr>
<td>
Greater Building Society
</td>
<td>
5.69%
</td>
</tr>
<tr>
<td>
Better Option Home Loans
</td>
<td>
5.84%
</td>
</tr>
<tr>
<td>
Heritage Bank
</td>
<td>
5.9%
</td>
</tr>
<tr>
<td>
Ubank
</td>
<td>
5.93%
</td>
</tr>
<tr>
<td>
Newcastle Perm
</td>
<td>
5.94%
</td>
</tr>
</tbody></table>
</div>
 
Source: RateCity.com.au. The above rates are for home loans that are widely available to the general public, ranked by rate and then alphabetically. Rates are accurate as at December 12, 2011 at 4.30pm and are subject to change.
 
 
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Fixed-rate mortgage boom ending

<html><body>
McGrath Estate Agents has defied the current gloom in Sydney’s market by posting record sales in November led by a 55% increase in Sydney’s eastern suburbs. 
The agency’s Eastern Suburbs office posted 140 sales with a cumulative value of $170.5 million, with 10 sales over $2 million. The office accounted for almost a quarter of the total sales achieved across the group in November. 
In total the agency recorded 758 sales worth $723 million during the month, surpassing the previous record set in March 2010 ($635 million from 572 transactions). 
Prestige eastern suburbs sales in the $2 million-plus category include a five-bedroom California bungalow in Cottingham Avenue in Kensington, which sold on November 4, marketed by McGrath agents Peter Delimitrou and George Faris.
McGrath chief operating officer Geoff Lucas says the strongest sector is the price range between $500,000 to $1.5 million, with 444 sales. 
“This has been a popular sector of the market driven largely by first home buyers and investor activity.” 
“Currently first home buyer activity comprises 16.4% of the market while investors hit a peak of 38.4% of the market in November according to AFG. 
“While there has been increased buyer activity in some regional areas such as Ballina, Byron and the Central Coast, our long standing Sydney metro offices have achieved some impressive gains while growing their market share”. 
Other regional offices to record strong sales growth over November included McGrath Inner West, which reported $75.7 million from 75 sales, with three sales over $2 million, (+21%) McGrath Lane Cove, which reported $32 million from 22 sales, with five sales over $2 million (+68%) and McGrath Cronulla, which reported $29.1 million from 34 sales, with one sale over $2 million (+9.9%). 
A returning confidence in the market has resulted in a record number of listings by the group in the past month with 1,019 listings across the network, compared with 651 for the corresponding period last year. 
Current average auction days on market were 36 for the group.
 
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McGrath posts record sales in November thanks to eastern Sydney deals

<html><body>
The Shopping Centre Council of Australia has backed zoning and planning recommendations by the Productivity Commission aimed at encouraging a more level playing field for all retail formats. 
The Productivity Commission’s final report notes the imbalance between shopping centre landlords and smaller tenants, who have to pay significantly higher rent than anchor tenants due to an imbalance of power and a lack of rental alternatives. 
To address this, the Productivity Commission recommends the broadening of business zones and significantly reducing prescriptive planning requirements to allow all retail formats in existing business zones. 
“We broadly support the commission’s recommendations on planning and zoning,” says Milton Cockburn, executive director of the Shopping Centre Council of Australia. 
“In particular, we are pleased that the commission recognises in its final report that all retail formats have to engage with the planning system and that it is not just a constraint on the so-called ‘new retail formats’. 
Cockburn in particular highlights the final recommendation that “all retail formats” have access to fairer zoning and planning regulations, as opposed to the draft version, which only singled out “new retail” formats. 
As an example, under the recommendation general retail and bulky goods outlets would be treated the same under state and territory planning schemes – meaning no retail format would be able to use planning and zoning regulations to gain a competitive advantage over others. 
“In the longer term, the planning objective should be to have one ‘open zone’ or multiple-use zone where a broad variety of land uses can be considered — such as retail, commercial and even some low-impact industrial uses,” the report says. 
Cockburn says all the other recommendations are directed at facilitating increased retail competition, and “we support this provided it results in all retail formats competing on a level playing field”. 
“We would have liked to see stronger support for activity centres policies (places where retail and commercial activities are combined in one location) and, within that support, particular recommendations for ensuring and increased supply of retail land within those activity centres,” he adds.
 
</body></html>

Shopping Centre Council backs calls for relaxed retail zoning

<html><body>
First-time buyers helped lift mortgage lending in October, according to housing finance figures released today by the ABS.
It was the fourth straight month of increases, but the pace of growth has slowed.
Nationally, the total number of owner-occupier housing finance commitments increased by 0.7% on a seasonally adjusted basis, with lenders agreeing to finance 51,981 mortgages.
The bright spot in the figures was the return of first-home buyers, which increased as a percentage of the market from 16.4% to 17.9%, with an average loan size of $280,000.
Some first-time buyers make their first purchase an investment property.
Mortgage lending increased in NSW (total number of mortgages up 1.3%), Western Australia (1.3%) and the Northern Territory (4.3%) but declined in all the other states and territories, led by the ACT (down 4.2%).
The number of mortgage commitments declined by 1.6% in both Queensland and Victoria and fell by 1.3% in South Australia.
In value terms and excluding alterations and additions, the market declined 2.5% in October to $20.46 billion, with owner-occupier mortgages decreasing by 1.2% to $14.4 billion and fixed loans for investment purposes down 5.5% over the month to just over $6 billion.
The number of loans for the construction of new houses fell by 1.7% to 4,646.
Banks increased their mortgage lending to owner-occupiers by 0.7% in October while non-bank lending decreased by 0.2%.
The weak October figures follow a 2.2% seasonally adjusted increase in September to 51,821 mortgages.
The overall 0.7% growth in October was “a touch above” expectations of Westpac and market forecasts.
Westpac described the data as mixed with new lending (excluding refinancing) stronger than the headline figure, rising 2.0%
However, new lending for the year to date is still down, declining by 1.8%.
“By state, there was a divide for the month. Victoria and Queensland weakened, both down by 1.6%. 
“The Victorian market is being weighed down by a sizeable increase of supply coming onto the market
“The Queensland market has weakened during 2011, with finance to owner-occupiers down by -11% for the year to date, the weakest of the states. “These figures provide a snap shot of housing finance just ahead of the RBA's rate cuts. The November and December rate cuts, and our expectation that the RBA will lower rates by a further 50bps, will provide some support to the sector. However, upside will be capped by ongoing headwinds facing the sector.”
The Housing Industry Association (HIA) also described the October figures as a “mixed bag” and says there is a clear need for policy reforms on the new home building front.
“The update for October 2011 showed a weaker result for new home lending for both owner occupiers and investors, together with further modest improvement in aggregate lending for first time and trade-up owner occupiers,” said HIA chief economist, Harley Dale. “New home lending appears to have largely flattened out through 2011, but at levels below the decade average,” says Dale.
A bounce in mortgage lending is expected in November with figures released by mortgage broker AFG (six weeks ahead of the ABS) revealing loan approvals<a target="_blank" href="/news"> surging to a 33-month high following the November rate cut</a>, led by a jump in loans taken out by property investors.
AFG recorded an 18.4% increase in mortgages processed by its 2,000 brokers with property investors accounting for almost two out of every five mortgages sold in November (38.4%) – an all-time record for the AFG Mortgage Index.
For advice on buying your first investment property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-how-to-buy-your-first-investment-property">download our free eBook.</a>
 
 
 
</body></html>

First-time buyers lift October mortgage lending figures: ABS

<html><body>
The offshore takeover of Australia’s sugar cane fields and sugar mills has continued following Thai sugar giant Mitr Phol seeking shareholder approval to take over north Queensland-based MSF Sugar.
The Thai company is seeking to acquire four far north Queensland sugar mills, more than 6,000 hectares of agricultural land and other infrastructure assets owned by MSF Sugar, a company dating back to 1886.
Mitr Phol has today opened its $313 million all-cash takeover offer for acceptance by MSF Sugar shareholders.
Mitr Phol has given shareholders until February 10 to accept its $4.45 per share offer, which has already been unanimously recommended by the directors of MSF Sugar.
To be successful, the bid must be accepted by 50.1% of shares on issue.
The offer is at a 31% premium to the MSF trading price of $3.40, the last trading price before shares were suspended following the takeover bid announcement on November 7. Shares in MSF are currently trading around $4.47.
Earlier this month, Sucrogen, a subsidiary of Singapore-listed agribusiness conglomerate Wilmar International Ltd, obtained creditor approval for its $120 million purchase of Proserpine Sugar Mill.
Sucrogen acquired Proserpine following a five-month battle with Chinese giant COFCO (the China Oil and Food Company).
Aside from its sugar mill holdings at Gordonvale, South Johnstone, Atherton Tablelands and Maryborough, MSF Sugar is a shareholder of Sugar Terminals Australia, the owner of six major port facilities in Queensland.
It sources its cane sugar from a property portfolio of almost 5,500 hectares in the Maryborough district, 60 hectares in the Isis district and 315 hectares in far north Queensland as well as from about 660 independent growers.
It also owns a 174-hectare tract of former cane land known as Mary Harbour located in Maryborough and earmarked for a mixed urban development (subject to planning approval). Other assets include water rights totalling 7,233 megalitres in the Lower Mary Irrigation Scheme and 142 megalitres in the Bundaberg Water Supply Scheme.
MFS Sugar’s origins date back to 1886, when The Maryborough Sugar Factory began operations as a juice mill.
Mitr Phol is Asia’s largest sugar producer and among the six biggest in the world with operations in Thailand, Laos and China.
 
</body></html>

Thai sugar giant Mitr Phol seeks to take over 125-year-old Queensland sugar company MSF Sugar

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The final report by the Productivity Commission into the retailing sector has recommended easing planning and zoning requirements to increase the supply of retail space. 
The commission believes this is the best way to redress the imbalance of power held by shopping centre landlords over smaller retailers. 
The newly formed Retail Council of Australia has been tasked with implementing the commision’s recommendation that state, territory and local governments “broaden business zoning and significantly reduce prescriptive planning requirements to allow the location of all retail formats in existing business zones to ensure that competition is not needlessly restricted”. 
The council must also implement the objectives of the National Retail Tenancy Working Group set up following the 2008 review, including the harmonisation of retail tenancy leases across jurisdictions and developing a common terms framework to be used nationally in reference to retail tenancy leases and the simple meaning of these terms. 
Russell Zimmerman, executive director of the Australian Retailers Association, says the peak body will work alongside the Retail Council in implementing these recommendations:
“Retailers have faced poor trading conditions for the last eighteen months as well as soaring rents and costs. The ARA intends to work as part of the Retail Council of Australia to balance the power between retailers and their landlords through addressing planning and zoning restrictions as well as working to harmonise and nationalise leasing legislation as quickly as possible.”
In its 563-page report, the commission says planning and zoning constraints appeareto be “the root cause of many of the concerns in the retail tenancy market”.
“Simply put, occupancy rates are extremely high in shopping centres due to strong demand for retail space in the face of constrained supply. 
“This places smaller retailers — who do not have the bargaining power of anchor tenants or chain specialty stores — in a very tough bargaining situation. 
“While it is possible for these retailers to ‘vote with their feet’ and move to shopping strips or other locations, the alternative sites are not always commercially attractive.” 
According to the report, planning and zoning controls have had “some adverse impact on the efficient operation of the retail tenancy market by increasing retail centre development prices to a level higher than they would be otherwise [and] reducing the level of localised competition between shopping centre landlords”. 
The report acknowledges the “large gap between rents of anchor tenants and smaller specialty retailers in shopping centres” but also accepts explanations from the likes of Westfield and Mirvac of “the importance of anchor tenants to the success of a shopping centre development”. 
According to the commission there is scope to improving the retail tenancy market by “removing unnecessary restrictions on competition and constraints on the supply and location of retail space through reforms to the planning and zoning regulations”. 
Implementing these reforms, it says, “would potentially increase competition between shopping centre landlords, and reduce the bargaining power of landlords vis-à-vis their tenants, by improving tenants’ ability to relocate close by and preserve their businesses after lease expiry”. 
The 563 page report highlights the growing dominance of shopping centres in the make-up of the retail market. 
“Current planning arrangements have produced 45 million square metres of retail space in Australia which over time is increasingly distributed towards shopping centres. 
“While most retailing still occurs outside of shopping centres, centres represent a growing share of the total market. The contribution of shopping centres to total retail space increased from 28% in the early 1990s to 38% in 2005-06.”
The commission highlighted the following as the key tenancy concerns raised by retailers 
<ul>
<li>Large gap between rents of anchor tenants and smaller specialty retailers in shopping centres.</li>
<li>Significant differences in retail rents in Australia compared to the United States.</li>
<li>Reporting of turnover data in shopping centres is used to set rents at ‘excessive’ levels.</li>
<li>Shop fit-out requirements, particularly the inability of retailers to negotiate competitive quotes for the work undertaken.</li>
<li>Standard lease terms (a provision incorporated in most state and territory legislation in a bid to improve security of tenure for tenants), that are normally of five years duration, do not provide sufficient security and are insufficient to amortise capital costs.</li>
<li>Limited negotiating power of retail tenants in shopping centres at the time of renegotiating a lease.</li>
<li>Landlords exploiting their superior bargaining power when a lease expires by seeking ‘excessive’ rent increases.</li>
<li>Retailers’ lack of security of tenure during ‘lease hold over’ periods.</li>
<li>Lack of publicly available information relating to shopping centre rents.</li>
</ul>
Photograph by Sherwin Huang
 
<ul></ul>
</body></html>

Relaxing zoning laws would help struggling retail sector: Productivity Commission

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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[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.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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