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The Goulburn Valley Hotel, which this weekend entertained punters with Bon Jovi and Pink tribute bands, has sold under the hammer for $6.6 million at auction in Melbourne.
The hotel has annual income of $472,849, reflecting a yield of 7.16%.
It includes a long-term lease with options expiring 2035.
It was sold on behalf of H. MacKinnon and K. Sutherland of Bent and Cougle, receivers and managers of Zurcus Hotel-Motel, who were appointed in October.
The property was marketed by Scott Callow from CBRE, Terry Board from TJ Board, Rocky Gagliardi from Kevin Hicks Real Estate Shepparton and Numurkah and Billy Holderhead from Burgess Rawson.
The hotel, located at 221-233 High Street in Shepparton and about two hours north of Melbourne, was built in 1928.
It stands on a 7,083-square-metre site and features a bistro, a piano bar with seating for 80 people, 40 gaming machines and a licence for 2,032 patrons.
The hotel is located close to both Coles and Woolworths.
It was sold as part of a Burgess Rawson portfolio auction held at Crown Casino in Melbourne on December 7.
The Goulburn Valley Hotel won the Australian Hotels Association Victoria Award for Best Re-Developed Hotel in in 2008 and the AHA National Awards for Best Re-Developed Hotel in Australia in 2009.
 
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lschlesinger-FZcF9M3vE6

Shepparton's Goulburn Valley Hotel sells for $6.6 million

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Whether it was due to political pressure or a desire to protect their brands by avoiding a pre-Christmas shellacking, the major banks and their subsidiaries all passed on the full RBA rate cut last week.
At 7.35pm on Thursday, Westpac announced that it was passing on the rate cut in full, following on from the Commonwealth Bank announcement just over an hour earlier.
Bankwest came to the party at 9.15pm with St George the last of the major bank brands at 10.13am on Friday morning, setting perhaps a new benchmark for time taken to make an interest rate announcement.
The Commonwealth Bank sent out a single abrupt paragraph:
“The Commonwealth Bank announced today that it will lower its Standard Variable Home Loan Interest Rate by 0.25% per annum to 7.31% per annum, effective for new and existing customers from 19 December 2011.”
This was in contrast to lengthier announcements from the other major banks, which, while highlighting the deteriorating situation in Europe and the impact on their funding costs, said they had made the “difficult” decision to pass on the full rate cut in the interests of their customers.
The kindest words came from NAB’s Lisa Gray, who said the bank wanted to “put money back in the hands of our customers and assist with supporting the Australian economy this Christmas”.
However, ANZ boss Mike Smith was clearly not happy about the amount of political pressure being placed on the banks to pass on the rate cuts in full:
“If there is one lesson the first round of the global crisis taught us, it is that a strong banking sector and well-managed government finances are the best protection the economy can have to avoid a co-ordinated downturn,” he wrote in the Financial Review.
“We simply have to have a broader and more informed public discussion about these issues as they affect all parts of the economy, including ­banking.”
Smith’s comments follow the ANZ announcing it will no longer adjust its mortgage rates following official RBA cash rate decisions.
“Bank funding costs are now largely unrelated to movements in the Reserve Bank’s official cash rate. We have therefore taken a decision to announce future pricing changes for retail and small business variable interest rates on the second Friday of each month,” said ANZ chief executive Australia Philip Chronican. 
“This provides a measure of predictability for customers on when rate changes will occur and it provides us with the flexibility to reflect movements in funding costs across the full spectrum of funding sources – not solely in response to the Reserve Bank’s cash rate.” 
A move out of step with the RBA was flagged Alan Kohler, who said he had suggested just such an idea to the major banks. 
Writing for <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-monetary-policy-cash-rate-Reserve-Bank-news-ce-pd20111208-PBR86?OpenDocument&amp;emcontent_Kohler">Business Spectator</a> on Thursday Kohler said: “Here’s a mad suggestion for the bank managers: level with your customers. Explain how your funding costs work and then when there’s a change in the price of the 26% or so of funds that come from wholesale financial markets, change the interest rate on your loans then, rather than waiting for the first Tuesday of the month, when the RBA board meets. “I have suggested this to each of the banks and to their lobbyists, and each of them agreed it would be a good idea. But then they shrug with a helpless smile. Banks hunt in packs, you see.” 
Kohler later tweeted following the ANZ announcement: “ANZ has taken my advice, and will set rates on 2nd Friday of each month, not just when the RBA moves.” 
Here’s a rundown of the interest rate changes announced by the banks and when they kick in: 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
Bank
</td>
<td width="205" valign="top">
New standard variable rate
</td>
<td width="205" valign="top">
When it kicks in
</td>
</tr>
<tr>
<td width="205" valign="top">
ING Direct*
</td>
<td width="205" valign="top">
6.22%
</td>
<td width="205" valign="top">
December 13
</td>
</tr>
<tr>
<td width="205" valign="top">
ME Bank
</td>
<td width="205" valign="top">
6.74%
</td>
<td width="205" valign="top">
Immediately
</td>
</tr>
<tr>
<td width="205" valign="top">
Heritage Bank
</td>
<td width="205" valign="top">
6.94%
</td>
<td width="205" valign="top">
December 16
</td>
</tr>
<tr>
<td width="205" valign="top">
Bankwest
</td>
<td width="205" valign="top">
7.20%
</td>
<td width="205" valign="top">
December 19
</td>
</tr>
<tr>
<td width="205" valign="top">
NAB
</td>
<td width="205" valign="top">
7.22%
</td>
<td width="205" valign="top">
December 16
</td>
</tr>
<tr>
<td width="205" valign="top">
ANZ
</td>
<td width="205" valign="top">
7.30%
</td>
<td width="205" valign="top">
December 16
</td>
</tr>
<tr>
<td width="205" valign="top">
St.George
</td>
<td width="205" valign="top">
7.30%
</td>
<td width="205" valign="top">
December 19
</td>
</tr>
<tr>
<td width="205" valign="top">
CBA
</td>
<td width="205" valign="top">
7.31%
</td>
<td width="205" valign="top">
December 19
</td>
</tr>
<tr>
<td width="205" valign="top">
Westpac
</td>
<td width="205" valign="top">
7.36%
</td>
<td width="205" valign="top">
December 19
</td>
</tr>
<tr>
<td width="205" valign="top">
Bank of Queensland
</td>
<td width="205" valign="top">
7.36%
</td>
<td width="205" valign="top">
December 16
</td>
</tr>
</tbody></table>
 
*applies to its Mortgage Simplifier product
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Unhappily perhaps, banks pass on full rate cuts 

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The Woolworths St Albans supermarket in Melbourne’s north west has sold at auction to a private investor for $7.24 million, significantly above expectations, demonstrating the <a href="https://www.propertyobserver.com.au/retail/woolworths-coles-key-to-attracting-sydney-retail-investors-htw/2011120952767">appeal of suburban shopping centres anchored by Woolworths or Coles.</a>
The sale reflects a yield of 5.7% on annual rental of over $481,000
More than 100 bids were submitted.
Agents Kliger Wood Real Estate and TBM Commercial, who marketed the store, had expected a price around the $6 million mark
Kliger Wood director Eugene Wood says the supermarket offered investors long-term income security with a leading national retailer as the sole tenant.
“The St Alban’s store is a strong performer having recorded consistent annual sales growth since 2006.
“The property was also extensively refurbished about five years ago and services a growing residential area from a prominent and easily accessible site.
“We were expecting offers in the region of $6 million as commercial investments of this scale and sole tenancy profile will attract the attention of larger private investors or superannuation funds.”
Woolworths is the sole tenant on the 6,348 square metre property located within a Business 1 zone and in close proximity to the St Albans railway station and a major bus interchange. It includes a liquor outlet which has a building area of 2,520 square metres.
The lease which is to Woolworths Limited commenced in June 2004 for a 15-year term plus 10-years, followed by four further option terms of five years, which would provide a lease currency until June 2049.
There is a base rent payable monthly in advance which is currently set at $472,183 gross with a turnover rent which is calculated at a reducing percentage per benchmark levels of retail turnover.
The turnover rent is also subject to a review calculated every five years to the average of the previous three years base rent plus turnover rent.
The breakeven point for the turnover rent is currently set at $23,609,184 and the turnover rent contribution in the financial year ended June 30, 2011 was $9,352.
 
 
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St Albans Woolworths sells for $7.24 million

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Sydney shopping centres anchored by either Woolworths or Coles have proven attractive to retail property investors in 2011, according to the December property market report by Herron Todd White. 
The report notes that outside of the Sydney CBD market investor interest returned over 2011, with a number of transactions on investment-grade properties. 
“This heightened activity follows on from a strong 2010, which saw the re-emergence of private investors and property syndicates, previously priced out of the market,” the December report notes. 
“The increase in investor interest has been focused firmly on properties in the $5 million to $25 million range, which feature a strong anchor tenant, generally a Woolworths or Coles supermarket.” 
Recent shopping centres transactions outside of the Sydney CBD include the sale in October of Dee Why Market for $22 million, on an initial yield of 8.8% and 248 Church Street Parramatta for $19.55 million, on an initial yield of 7.9%. 
The Dee Why Market is anchor tenanted by Woolworths, while Parramatta centre is anchored by rival Aldi. 
Both these sales, says HTW, have “reaffirmed the strength of this sector”. 
“Outside of this price range, sales activity has been limited.” 
Currently up for sale is the 3,900 square metres Woolworth’s Neutral Bay store on the Sydney North shore bringing in net income of $1.9 million per year and fully leased by the supermarket until 2014. The expressions of interest campaign run by Savills agents Simon Muirhead and Ben Stewart ends on December 14. 
Herron Todd White valuers are by no means the only ones to note the value Coles and Woolworths bring to shopping centres. 
In its October annual report, Charter Hall Retail REIT said it would continue to re-weight its shopping centre portfolio in <a href="https://www.propertyobserver.com.au/retail/charter-hall-has-a-taste-for-coles-and-woolies/2011100451775">favour of Australian shopping centres anchored by Coles and Woolworths</a> after the supermarket groups helped the REIT deliver profits of $62.9 million for the year off a portfolio valued at $1.93 billion. 
Similarly, in August Mirvac said its retail portfolio has defied the current retailing gloom by delivering solid growth, with food majors <a href="https://www.propertyobserver.com.au/news/coles-and-woolies-help-mirvac-deliver-30-profit-increase/2011082351258">Coles and Woolies accounting for a quarter of rental income.</a> 
The picture is less rosy in the Sydney retail strip market where increased vacancy and concerns over the rental growth outlook has restricted the level of demand from investors. 
“Demand from owner occupiers also remains low, with the dual impact of weak retail sales and high lending costs preventing new start ups and limiting expansion plans. 
“There are however a few exceptions to this rule. Quality properties in locations with minimal vacancy remain in high demand. For example a strata retail suite in Potts Point sold for $850,000, equating to $9,043 per square metre. 
“At the top end of the market the dual impact of a lack of properties being actively marketed and a reduction of potential buyers has resulted in a continued lack of property transactions.
“Over the past 11 months the most expensive retail property sold in Sydney was for ($42.8 million) Bridgepoint, Mosman. 
The report notes that while the Westfield Sydney City technically opened in December 2010, the majority of the stores including the much hyped ‘Zara,’ opened their doors in the first half of 2011. 
“Westfield, coupled with the redevelopment of the Mid City Centre in 2010, has revitalised the Pitt Street Mall precinct, luring high end and international retailers to Sydney. 
“Despite the initial relocation of many prime retailers into the new developments from properties surrounding Pitt Street Mall, super prime retail rents remain firm, with new retailers eager to benefit from location near these new centres.” 
According to a September report by Cushman &amp; Wakefield, retailers on Pitt Street Mall are paying <a href="https://www.propertyobserver.com.au/retail/pitt-street-mall-closing-in-on-fifth-avenue-retail-rents/2011090151391">33% more per square metre than 12 months ago</a> with the average rent equating to more than $10,000 per square metre.
 
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Woolworths, Coles key to attracting Sydney retail investors: HTW

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Westpac subsidiary brands St George and Bank of Melbourne has followed their parent bank by passing on the full RBA rate cut.
Both banks will reduce their standard variable home loan rateby 0.25% to 7.3% per annum. However, Bank of Melbourne will cut its rate on December 16 while St George will wait until December 19 before passing on the rate cut.
Both banks have also cut variable business loan and business overdraft rates by 0.25% – effective from the same dates.


“St George cut its standard variable home loan rate by 0.25% in November and I’m pleased to let our customers know we’ve decided to cut our rates by a further 0.25%,” says St George Bank chief executive Rob Chapman.
 
 
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Westpac brands deliver full rate cut

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RBA governor Glenn Stevens says the RBA has been forced to set the cash rate at lower than it would have been otherwise due to the banks increasing their profit margins on home loans since the onset of the GFC.
“I've said this countless times, and it's usually ignored, but, yes, the spread between the cash rate and major home loan rates has risen by something like 100 basis points since about 2007," Stevens said as part of a speech in honour of former University of Sydney economist Warren Hogan.
"For that reason, the cash rate is roughly lower than it would have been otherwise, to offset that.
"We have broadly offset that change in the margin by setting our instrument appropriately."
Since 2007, the banks have been able to increase their home loan margins by increasing rates independent of official RBA increases or by not passing on full rate cuts.
This was most in evidence in December 2009 when Westpac raised interest rates by 0.45% on its variable rate mortgages, 20 basis points above the RBA’s official rate increase of o.25%.
Yesterday, ANZ said it would no longer wait until monthly RBA announcements, but would instead make future pricing decisions on the second Friday of every month.
Stevens’ comments follow the major banks taking two full days to eventually decide to pass on the full rate cut to borrowers.
However, all the major banks hinted that they were under pressure to pass on future rate cuts in full by making reference to the increasing cost of raising wholesale funding overseas and in particurlar the problems being experienced in Europe.
During his speech, Stevens delved into what he called the extensive program of regulatory reform under way in Europe and said the most far-reaching proposals recently endorsed at the G-20 summit to protect banks “too big to fail at an international level”, otherwise known as “Globally Systemically Important Financial Institutions, or G-SIFIs”.
“Some 29 individual banks have been identified as fitting the criteria to be labelled G-SIFIs at present, though the list is not a fixed one: banks can enter and leave it over time.
“There will, in due course, be a framework for globally systemic insurance companies with parallel criteria. The intention of the policy is to make the failure of such entities less likely by requiring additional capital, and to make the consequences of failure less dramatic by developing better tools to resolve entities that have failed or are on the point of failure.”
To make this work Stevens says would require “considerable co-operation across jurisdictions at moments where everyone's instinct is to protect creditors and counterparties in their own jurisdiction”
He also suggested that a new era of tighter bank regulation might be dawning as there was now a “certain tendency towards the financial repression that was a feature of the post-war world in which Warren Hogan first studied economics”.
“A legacy of the 1930s was a much tighter regulatory regime for banks, elements of which lasted for decades.”
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RBA governor Glenn Stevens says cash rate is lower to offset bank margins

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Sales of houses and units bounced back in October following falls in September, according to latest HIA - JELD-WEN New Home Sales Report. 
Detached house sales increased by 5.1% in October 2011 following a 3.3% decline in September while sales of multi-units rose by 9% in October following a 5.5% dip in September. 
The volume of detached house sales improved in four out of five mainland states in October 2011, rising by 20.8% in Queensland (helped by the $10,000 Queensland Government building boost), 4.9% in Western Australia, 1.4% in South Australia and 1.1% in New South Wales. Sales fell by 1.2% in Victoria.
<img src="/images/stories/hiadec9.gif">
Overall, the total number of new homes (detached and non-detached) sold in the month of October 2011 increased by 5.5%, although sales remained down by 8% over the three months to October.
HIA chief economist Harley Dale described the “modest” improvement in October as encouraging start for the December quarter. 
“With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst soft housing conditions, now is certainly a good time to build a new home for those who are financially set to take that decision,” says Dale. 
“As it stands the profile for new home sales remains very weak, despite this latest monthly increase. In October 2011 the volume of detached house sales was 29% below the average of the last 15 years."
 “Any logic behind achieving a swift return to budget surplus in 2012-13 is spurious given current global economic conditions.”
 
 
 
 
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New home sales recover ‘modestly’ in October: HIA

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Billionaire investor Warren Buffett’s decision to invest more than $10 billion this year in IBM is more about having a stake in the modernisation of national infrastructure than have a foothold in the high-tech sector, according to Washington Post.
The Oracle of Omaha now holds 5% of IBM, making him one of the biggest investors in the computer giant – having previously shunned investing in high-tech companies.
IBM is currently investing heavily and expanding in its Smarter Planet initiative, which aims to use digital technology and digital data to improve systems and processes to modernise national infrastructure such as roads, waterways and urban areas.
In the area of office design, IBM is looking to develop greener building that run more efficiently and, “more importantly, communicate with and about their various systems”.
One of IBM’s own projects involves a 306,520-square-metre manufacturing site in its Rochester, Minnesota location, which had more than 250,000 sensor points with the potential to report information.
To help solve the problem of what to do with all of this data, IBM implemented its Intelligent Building Management solution in partnership with Johnson Controls, which helped achieve incremental, year-on-year energy savings of about 8%.
In another project, IBM helped the Shin Kong Wu Ho-Su Memorial Hospital in Taiwan increase revenue by 5% each month and increase bed utilisation from 70% to 92% by implementing two systems – Executive Information System (EIS) and a Quality Indicator System (QIS), which gave insights into performance in real time.
The use of such smart systems was recently called “the next big thing” by The Economist magazine.
<a href="https://www.washingtonpost.com/blogs/innovations/post/warren-buffett-and-why-ibm-is-just-like-a-railroad/2010/12/20/gIQAyfsZiN_blog" target="_blank">The Washington Post </a>has likened his investment in IBM to his decision in 2009 to invest $34 billion in the Burlington Northern Santa Fe railroad.
“Railroads just a few years ago were viewed as a stodgy, less-than-glamorous area in which to invest. Yet, Buffett held true to his investment vision, choosing to view railroads as a play on the nation’s infrastructure and as a proxy for US economic growth,” the newspaper said.
“If you want to invest in the future of America, then invest in railroads. In real life, as in the board game Monopoly, railroads are valuable properties.”
IBM’s decision to develop smart infrastructure technologies is expected to put it in demand from countries like China, where national infrastructure is struggling to cope with massive growth in urbanisation efforts.
Should IBM be able to tap into markets like China, the earnings potential would be significant, something Buffet clearly knows.
Buffett’s MidAmerican Energy Holdings, the utility arm of investment giant Berkshire Hathaway empire,<a target="_blank" href="https://www.propertyobserver.com.au/news/warren-buffetts-%242-billion-solar-acquisition-tipped-to-spur-solar-industry/2011120852755"> has also nabbed Topaz Solar Farm</a> in the biggest acquisition of a single photovoltaic project anywhere.
 
 
 
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Warren Buffett’s IBM play about ‘smart’ infrastructure, not high-tech stock

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Westpac and CBA joined their major bank rivals NAB and ANZ by passing on the full 0.25 cash rate cut to their variable home rate borrowers.
Their decisions came after the close of business. Westpac and CBA's rate cuts will kick on December 19, while ANZ and NAB will cut rates on December 16.
Earlier in the day, NAB became the second major lender to pass on the full RBA rate cut, following on from <a href="/news">ANZ</a>, which was first out the blocks.
Having taken more than two days to make up its mind, the NAB reminded borrowers that for 29 months it has offered the lowest standard variable home loan rate of the major banks.
<table style="width: 470px;" border="0" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td colspan="2" valign="top" width="567">
Announced Standard Variable Rate p.a., as at 8pm 8 December 2011 
</td>
</tr>
<tr>
<td valign="top" width="371">
NAB 
</td>
<td valign="top" width="196">
7.22%
</td>
</tr>
<tr>
<td valign="top" width="371">
ANZ 
</td>
<td valign="top" width="196">
7.30%
</td>
</tr>
<tr>
<td valign="top" width="371">
CBA 
</td>
<td valign="top" width="196">
7.31%
</td>
</tr>
<tr>
<td valign="top" width="371">
WBC 
</td>
<td valign="top" width="196">
7.36%
</td>
</tr>
</tbody></table>
NAB customers will save $62 per month on an average $300,000 NAB home loan.
Lisa Gray, group executive NAB Personal Banking, says the decision was a  difficult one,  “where we have had to weigh the concerns of our customers and the community with the rising cost of funds”.
“While we continue to be concerned about uncertainty in Europe and the impact on increased funding costs, our view is that it is important to put money back in the hands of our customers and assist with supporting the Australian economy this Christmas.
“We remain concerned about rising funding costs and will continue to monitor developments overseas.”
<a target="_blank" href="/news">Bank of Queensland</a> and <a target="_blank" href="/news">ME Bank</a> have also decided to pass on the rate cut in full.
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All big banks follow ANZ's lead in passing on full rate cut

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It has taken almost two days, but ANZ has jumped first, breaking the big bank silence and passed on the full 25-basis-point rate cut to its borrowers.
 
The bank says it will lower interest rates for variable-rate mortgages and small business lending by 0.25% per annum effective from December 16. 
This will reduce its new standard variable mortgage rate to 7.3% per annum.
 
In addition, the bank has introduced a special two-year fixed-term mortgage at 5.95% per annum on December 12. This is a reduction of 0.2% per annum on the current two-year rate and 1.35% per annum lower than ANZ’s new standard variable rate. 
The bank says future pricing decisions will be made on the second Friday of each month, (rather than following RBA rate decisions). 
ANZ chief executive Australia Philip Chronican says: “In the face of the economic and banking crisis in Europe, our decision on the size of the interest rate change has been one of the most difficult we have made in recent times. Retail banking margins have been contracting as the cost of funds has progressively risen over the last six months. 
“Bank funding costs are now largely unrelated to movements in the Reserve Bank’s Official Cash Rate. We have therefore taken a decision to announce future pricing changes for retail and small business variable interest rates on the second Friday of each month. 
“This provides a measure of predictability for customers on when rate changes will occur and it provides us with the flexibility to reflect movements in funding costs across the full spectrum of funding sources – not solely in response to the Reserve Bank’s cash rate. 
“We know many people in the community are doing it tough at the moment and, on this occasion, we felt that a decision to reduce interest rates by 0.25% per annum for home borrowers and for small business was the right one in the circumstances. 
“The significance of the crisis in Europe however has real consequences for the global economic outlook, for the Australian economy and for bank funding costs,” he says.
 
 
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ANZ to pass on full 25-basis-point rate cut to borrowers

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.

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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."

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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.

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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.

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Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

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Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

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While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

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

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