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Federal Treasurer Wayne Swan says borrowers who are not satisfied with the response of the major banks to the December 6 rate cut should vote with their feet and switch lenders.
A move away from the majors to some of the second-tier lenders would certainly increase competition in the sector.
According to mortgage broker AFG’s November report, the major banks increased their dominance of mortgage lending, accounting for 80.4% of all loans processed, compared with 78.9% in October.
In addition, all the major banks delivered record profits this financial year, with Westpac earning $6.99 billion (10% up), the Commonwealth Bank taking home $6.1 billion (40% up), NAB earning $5.5 billion (19.2%) and ANZ earning $5.4 billion (19%).
Collectively that totals about $24 billion, greater than gross national products of Taiwan, the Czech Republic and Hungary, to name just a few.
For the millions of borrowers still waiting to hear how much of the RBA’s 0.25% cash rate cut the major banks will pass on, here’s a rundown of just how big their mortgage books are:
$304.2 billion
The size of the Commonwealth Bank mortgage book (including Bankwest)
$287 billion
The size of the Westpac mortgage book (including St George)
$174.7 billion
The size of NAB’s mortgage book
$160 billion
The size of ANZ’s mortgage book
$37 billion
The size of the ING Direct mortgage book
$29.6 billion
The size of the Suncorp mortgage book
$21.6 billion
The size of the Bendigo and Adelaide Bank mortgage book
$21.2 billion
The size of Bank of Queensland’s mortgage book
$7.2 billion
The size of the HSBC mortgage book
$7.1 billion
The size of Citibank’s mortgage book
$6.4 billion
The size of AMP’s mortgage book
$5.4 billion
The size of the Members Equity Bank mortgage book
$2.3 billion
The size of Macquarie Bank’s mortgage book
 
Source: APRA October 2011 monthly banking statistics
 
 
 
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Major banks’ mortgage books soar as borrowers toy with swapping lenders 

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Harry Triguboff’s Meriton group will complete 700 serviced apartments across Australia in 2012, and has recently acquired a North Sydney site.
The site at 80 Arthur Street is in the heart of the North Sydney CBD and measures 922 square metres. The sales price has not been disclosed. The vendor was the Medi-care Centre Foundation, which acquired the land and office building in 1988 for $14.1 million. A nearby vacant lot on Little Walker street measuring 1,600 square metres sold for $59 million in June 2006.
Construction of the North Sydney apartments is expected to begin next year subject to North Sydney Council approving concept plans and then a full development application.
The North Sydney acquisition follows Meriton acquiring a property in Zetland in the inner east, which will be developed into a $200 million serviced apartment project.
The Zetland project will take the number of projects Meriton is building along South Dowling Road to 5,500.
Apartments in the Zetland block will start at $550,000.
According to Triguboff occupancy rates in serviced apartments are strong while room rates in Australia compare well with those overseas.
Speaking at a property lunch last week, Triguboff highlighted that most of his new apartments were being sold to Asian buyers and that many potential Australian buyers were being priced out of the market due to high costs and high interest rates.
"This ability to be competitive, even with Asia, proves that we are in a very strong long-term position," he has told The Australian.
He says the new serviced apartments will also be targeted at Asian buyers.
Meriton launched its serviced apartment business in 2005 and now has a portfolio of 2,258 apartments and over 3,300 bedrooms with seven buildings in Sydney, two on the Gold Coast and one in Brisbane.
In September this year, Meriton opened two new serviced apartment properties.
Most striking was the 234-metre-high Soleil building on Adelaide Street in the Brisbane CBD, now the city’s tallest building and comprising over 460 apartments. It was Meriton first serviced apartment in Brisbane.
In Sydney, Meriton opened a purpose built serviced apartment property with 247 apartments in the Haymarket district, cornering both Campbell Street and George Street.
Meriton has sold 120 out of 130 apartments at the former site of Channel 7 in Epping, Northern Sydney.
Meriton acquired the site for $55 million in June 2010
Once completed the site will have 800 apartments. Triguboff says Meriton plans to develop the site further with the addition of 200 apartments.
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Harry Triguboff's Meriton group to build 700 serviced apartments next year across Australia

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As the stand-off between the big banks and their borrowers enters an unprecedented second day, credit unions and mortgage minnows have shown up their bigger rivals by passing on most of the November 6 rate cut.
BMC Mortgage, Collins Home Loans, Credit Union SA, Hemisphere Financial, Police and Nurses Mutual Banking, The Capricornian and Unicredit WA have all passed on at least 16-basis-point reductions to customers, according to RateCity.com.au.
Lenders that have cut rates
<div align="center">
<table style="width: 450px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="29%" nowrap>
Lender 
</td>
<td width="43%" nowrap>
Product 
</td>
<td width="12%" nowrap>
New rate 
</td>
<td width="15%" nowrap>
Cut by 
</td>
</tr>
<tr>
<td width="29%" nowrap>
BMC Mortgage
</td>
<td width="43%" nowrap>
Platinum Pack
</td>
<td width="12%" nowrap>
6.85%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
BMC Mortgage
</td>
<td width="43%" nowrap>
Advantedge
</td>
<td width="12%" nowrap>
6.93%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Collins Home Loans
</td>
<td width="43%" nowrap>
Premium Variable
</td>
<td width="12%" nowrap>
6.79%
</td>
<td width="15%" nowrap>
-0.20%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Collins Home Loans
</td>
<td width="43%" nowrap>
Variable
</td>
<td width="12%" nowrap>
6.47%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Collins Home Loans
</td>
<td width="43%" nowrap>
First Home Buyer Low Deposit
</td>
<td width="12%" nowrap>
7.46%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Collins Home Loans
</td>
<td width="43%" nowrap>
Go Between Loan
</td>
<td width="12%" nowrap>
6.79%
</td>
<td width="15%" nowrap>
-0.16%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Credit Union SA
</td>
<td width="43%" nowrap>
First Home Loan
</td>
<td width="12%" nowrap>
6.92%
</td>
<td width="15%" nowrap>
-0.20%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Credit Union SA
</td>
<td width="43%" nowrap>
Standard Variable &lt;299k
</td>
<td width="12%" nowrap>
7.22%
</td>
<td width="15%" nowrap>
-0.20%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Credit Union SA
</td>
<td width="43%" nowrap>
Standard Variable Unlimited
</td>
<td width="12%" nowrap>
6.92%
</td>
<td width="15%" nowrap>
-0.20%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Hemisphere Financial
</td>
<td width="43%" nowrap>
Contour Loan
</td>
<td width="12%" nowrap>
7.44%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Hemisphere Financial
</td>
<td width="43%" nowrap>
Home Loan
</td>
<td width="12%" nowrap>
7.04%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Hemisphere Financial
</td>
<td width="43%" nowrap>
Horizon Loan
</td>
<td width="12%" nowrap>
6.69%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Hemisphere Financial
</td>
<td width="43%" nowrap>
Quickstart Loan
</td>
<td width="12%" nowrap>
7.34%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Police&amp;NursesMut Banking
</td>
<td width="43%" nowrap>
Easypay Variable
</td>
<td width="12%" nowrap>
7.03%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Police&amp;NursesMut Banking
</td>
<td width="43%" nowrap>
Dream Home Loan Var
</td>
<td width="12%" nowrap>
6.74%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Police&amp;NursesMut Banking
</td>
<td width="43%" nowrap>
Life Style Home Loan
</td>
<td width="12%" nowrap>
7.09%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
The Capricornian
</td>
<td width="43%" nowrap>
Variable
</td>
<td width="12%" nowrap>
7.60%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
The Capricornian
</td>
<td width="43%" nowrap>
My Advantage Variable 50K to 2M
</td>
<td width="12%" nowrap>
7.10%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
The Capricornian
</td>
<td width="43%" nowrap>
My First Home Loan Variable 50K to 750K
</td>
<td width="12%" nowrap>
6.70%
</td>
<td width="15%" nowrap>
-0.65%
</td>
</tr>
<tr>
<td width="29%" nowrap>
Unicredit-WA
</td>
<td width="43%" nowrap>
Variable
</td>
<td width="12%" nowrap>
6.85%
</td>
<td width="15%" nowrap>
-0.25%
</td>
</tr>
<tr>
<td width="29%" nowrap>
 
</td>
<td width="43%" nowrap>
 
</td>
<td width="12%" nowrap>
 
</td>
<td width="15%" nowrap>
 
</td>
</tr>
</tbody></table>
</div>
They join <a target="_blank" href="/news">Bank of Queensland</a>, <a target="_blank" href="">ME Bank</a> and <a target="_blank" href="/news">Heritage Bank</a> (all of whom have passed on the rate cut in full) to announce their interest rate decisions.
The mortgage comparison website calculates that just 6% of more than 110 lenders on its site have announced that they will pass on at least part of the Reserve Bank's 0.25% reduction to mortgage customers (as of December 7).
It expects the majority of lenders to move over the coming weeks as they did in November.
Alongside the Big Four banks and their subsidiary brands ING Direct and Citibank have yet to make any announcement about rate cuts following the RBA cutting the cash rate by 25 basis points on December 6.
Damian Smith, RateCity's CEO, says switching to another lender may be more cost-effective than many borrowers realise.
"If your lender doesn't move on rates this month and you end up with a rate over 7% by January, then switching to a another lender may see you in front financially in less than one year," he says.
The average upfront fee when switching to a new home loan is $535 for home loans in the RateCity database. Some lenders may also be required to pay an exit fee if they signed up to their existing loan before July 1.
"For a borrower with a $400,000 home loan and paying the average of the big four bank's standard variable rates of 7.55% would need to switch to a new rate of 7.38% (0.17% less) to recoup the costs of switching within the first 12 months.
"Borrowers currently paying a rate of 7.1% would need to switch to a rate of 6.93% to recoup the costs of switching in the first year.
"There is really no need to stick with your current lender if they aren't willing to budge on interest rates or they aren't one of the most competitive on the market,” Smith says.
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Mortgage minnows show up major banks on rate cuts 

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Rents in mining towns in the Pilbara region of Western Australia are among the highest in Australia, with often modest and uninspiring houses asking exorbitant rents, especially when you consider what you’d get for about the same price in the prestige suburbs on Sydney Harbour and Melbourne’s south east. Following on from our list of <a target="_blank" href="https://www.propertyobserver.com.au/residential/pilbara-mining-rents-the-seven-most-expensive-wa-boom-towns/2011113052624?source=flicker1">the seven most expensive WA boom towns</a>, we’ve picked out some Pilbara houses up for rent and compared them with what you could rent in Sydney and Melbourne in a similar price bracket:
Less than $1,000 per week
Wickham, Karratha (yields 10% to 12%)
<img src="/images/stories/wickam.jpg">
There are just three properties listed for rent at under $1,000 per week across the suburbs of Karratha, Port Hedland and Dampier, according to real estate.com.au. This is the only house – a three-bedroom property in Wickham, a suburb of Karratha asking $750 per week and listed by <a target="_blank" href="https://www.realestate.com.au/property-house-wa-wickham-406157401">Dianne Huggins from North West Realty – Karratha</a>.

<p style="background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; text-align: center; background-position: initial initial; background-repeat: initial initial;"> Woolloomooloo, Sydney (yield 3.8%)        

<img src="/images/stories/cowper.jpg">
For $700 per week, you can rent a one-bedroom apartment with views over Garden Island on Cowper Wharf Road listed by <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-woolloomooloo-406362706">Kerry Madeheim Morton and Morton Woolloomooloo</a>
Carlton, Melbourne (yield 3.2%)

 
<img src="/images/stories/rathdowne.jpg">
This three-bedroom <a target="_blank" href="https://www.realestate.com.au/property-house-vic-carlton-406363396">Victorian Terrace on Rathdowne Street</a> is available to rent at $700 per week listed by Claire Spence listed by Nelson Alexander Real Estate Fitzroy.
$1,001 to $2,000 per week

South Hedland (yield 10.2%)

<img src="/images/stories/southheadland.jpg">
This raised three-bedroom, one-bathroom property on Pedlar Street is asking weekly rent of $1,400, exactly the median rent for South Hedland.  It is listed by <a target="_blank" href="https://www.realestate.com.au/property-house-wa-south+hedland-406210456">Ashlee Morris from Hedland First National Port Hedland</a>. A three-bedroom property recently sold on the same street for $795,000, reflecting a yield on this weekly rent of 9.16%

Balwyn North, Melbourne (Yield 2.3%)

<img src="/images/stories/balwynnorth.jpg">
Asking $1,950 per week, this five-bedroom European-influenced fully furnished house includes a grand entrance with staircase and a formal dining room with ornamental open fireplace and is listed by <a target="_blank" href="https://www.domain.com.au/Property/For-Rent/House/VIC/Balwyn-North/?adid=7329519">Cherie Leman from Fletchers Canterbury</a>
$2,001 to $3,000 per week
Port Hedland (yield 10.72%)
<img src="/images/stories/porthead.jpg">
This three-bedroom house with palm trees on McPherson Street, <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/53-mcpherson-street-port-hedland/Property-Details-rent-residential-3275273">currently under application at $2,700 per week, is listed by Joanne John from Crawford Realty</a>.  A nearby five-bedroom property at 58 McPherson Street was sold by John Briggs of Port Hedland Real Estate for $1.31 million in February this year. At a weekly rent of $2,700 this would equate to a yield of 10.72%.
Balwyn, Melbourne (yield 2.3%)
<img src="/images/stories/balwyn.jpg">
Asking $2,900 per week, this-four bedroom Mediterranean-style house is set in manicured fountained gardens. The property is listed through <a target="_blank" href="https://www.domain.com.au/Public/AgentProfile.aspx?mode=sell&amp;agencyID=17215&amp;adid=7301607">Thomas Moreland Real Estate</a>
Pyrmont, Sydney (yield 3.7%)

<img src="/images/stories/pyrmont.jpg">
Available to rent at $2,800 per week is this <a href="https://www.realestate.com.au/property-house-nsw-pyrmont-405965851">three-bedroom Pyrmont apartment listed by Gerard Marino from Morton and Morton Pyrmont</a>. The apartment features expansive 270-degree views across Sydney Harbour, the city, Harbour Bridge and Blackwattle Bay, and it has a huge balcony and air-conditioning.
More than $3,000 per week
Baynton West, Karratha, Pilbara (yield 9.9%)
<img src="/images/stories/karatha.jpg">
Asking $3,400 per week, this four-bedroom, four-bathroom home features a swimming pool, corner pantry and powder room. <a title="Visit " href="https://www.realestateview.com.au/Real-Estate/karratha/Property-Details-rent-residential-3411403">The property is listed through Pilbara Real Estate</a>.
Toorak, Melbourne (yield 2.1%)
<img src="/images/stories/toorak.jpg"> 
Asking $3,500 per week, this five-bedroom family home includes “resort-style” facilities including gas- and solar-heated swimming pool, tennis court, trampoline and deck area with built-in barbecue. <a href="https://www.domain.com.au/Property/For-Rent/House/VIC/Toorak/?adid=7290687">It is listed by Hayley Mitchell from Mitchell Property Management</a>
Elizabeth Bay, Sydney (yield 4.8%) 
<img src="/images/stories/elizabethbay.jpg">
Asking $3,500 per week, this five-bedroom waterfront apartment is set over 390 square metres and has been fully restored. It includes and entrance with cathedral high, ornate designed ceilings and an imposing formal lounge with bay window, and a separate dining room<a href="https://www.domain.com.au/Property/For-Rent/Apartment-Unit-Flat/NSW/Elizabeth-Bay/?adid=7322405">. It is listed through Jenni Favas from Morton and Morton</a>
 
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Hefty residential rentals in the booming Pilbara rivalling the east coast's wealthy suburbs

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As the major banks continue to hold off on making interest rate decisions, Heritage Bank has joined <a href="/news">Bank of Queensland</a> and <a href="/news">ME Bank</a> by passing on the full 25-basis-point rate cut to its borrowers.
Heritage’s discount variable mortgage rate will now drop to 6.35% from 6.6% and the standard variable mortgage rate will drop to 6.94%, down from 7.19%. The reductions will be effective from December 16. CEO John Minz says passing on the full interest rate reduction is the right thing to do by its members. “With Christmas just around the corner, many of our members are facing added expenses. Passing on the full RBA cut on our variable home loan rates will help make their festive season just that little bit less stressful.” Minz says the rate cut was a concrete demonstration that the change of name to Heritage Bank last week (from Heritage Building Society) had not changed Heritage’s focus on the interests of members. “We remain absolutely committed to ensuring we deliver the best value possible to members,” he says. “At Heritage, we’re not about generating the biggest profits we can. We’re all about the best interests of our members and the communities in which they live.”
 
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Heritage Bank third lender to pass on full RBA rate cut

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Anyone who has been monitoring their Twitter accounts today will sense the growing anger at the Big Four banks, which have taken more than a day to decide how much of the RBA’s 25-basis-point cash rate cut to pass on to consumers.
Borrowers by now may have given up hope that the major banks will deliver real Christmas cheer.
More than 26 hours have passed since the RBA announced it would cut the cash rate to 4.25%. The last time the Big Four took this long was in April 2009, when the major banks took almost as long to announce their interest rate cuts after the RBA cut interest rates by 0.25%.
On that occasion, NAB was the one to “move” first – it decided to pass on none (that’s right, zilch) of the 25 basis points leading to the bank taking a huge media bashing.
Of course all the other banks then followed, and though they all passed on a meagre 10 basis points, that did not cop the same level of brand damage or public outrage as NAB was subjected to.
Today, as many commentators and analysts have pointed out, none of the banks wants to go first on making an announcement because a) they will set the benchmark that the others will only have to beat by a few basis points to avoid copping most of the flak and b) whoever moves first is likely to suffer the greatest brand damage, (provided the other banks beat their rate cut of course).
As I write, behind closed doors, the banks are carefully crafting the lines they are guaranteed to spin out about increased funding costs and European jitters that will accompany eventual announcements.
(None, though, are likely to try emulate Westpac’s disastrous attempt to explain it not passing on a full rate cut in December 2009 by putting together an animated video about banana smoothies and the cost of bananas.)
Even if borrowers must swallow the explanation that funding costs have gone up, it is also undoubtedly true that the major banks are looking to protect shareholder returns (and as Age columnist Michael West pointed out, protect executive pay bonuses).
And of course there is also the little matter of the vicious mortgage discounting war they have been engaged in over the past few months, which as JP Morgan banking analyst Scott Manning has pointed out recently, has reached a stage where the discounts are impacting on their bottom line – meaning the banks need to do something to increase their margins. Their delay in making an announcement is likely to only insight more bank bashing and angry tweeting.
However, the question is: will they vote with their feet and switch lenders as Treasurer Wayne Swan has now made much easier to do?
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Borrowers' anger grows as Big Four banks dither on passing on rate cut

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The mortgage market appears to be on the mend, with investors and first-home buyers leading the charge, according to RBA’ s December chart pack.
<img src="/images/stories/rbadec71.gif">
An “unofficial” increase in mortgage demand was noted by <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=AFG+property+observer&amp;source=web&amp;cd=1&amp;ved=0CB8QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fafg-mortgage-approvals-at-33-month-high-as-investors-return-to-the-market&amp;ei=oLneTuOLM4W0iQftxqC_BQ&amp;usg=AFQjCNHqGZoAoB0RZMSkO1IySPU5uZH1zA&amp;sig2=ZDBvFZY5L0q3qMPxVXaC6A">mortgage broker AFG in its November sales numbers</a>, which spiked by 18% led by investors and first home buyers.
The growing demand for home loans comes as house prices continue to fall across all markets, though Sydney prices are flattening out as this chart shows:
<img src="/images/stories/rbadec72.gif">
Alongside cheaper house prices and a growing demand for mortgages, there has also been a slight drop in the amount of money people are saving:
<img src="/images/stories/rbadec73.gif">
The poor outlook for the residential construction sector – particurlarly for detached houses – can be seen in this chart:
<img src="/images/stories/rbadec74.gif">
 
 
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RBA charts: Investors and first-home buyers returning to the market

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The appeal of 7-Eleven service stations has not diminished, with a Mount Druitt store in NSW selling for $4.04 million as part of a Burgess Rawson commercial property portfolio auction in Sydney yesterday.
The sale to a Victorian buyer was negotiated soon after the auction with the sale prices reflecting a yield of 7.8% on income of $316,000.
This is in the upper range of yields achieved for 7-Eleven service stations for 2011.
About <a href="https://www.propertyobserver.com.au/retail/sales-of-7-elevens-during-2011-secure-investors-yields-of-between-4.6-and-8.5/2011112752554">$90 million worth of refurbished 7-Eleven service stations across NSW and Victoria have changed hands this year, with yields ranging from 4.6% to 8.5%.</a>
The 2,500-square-metre Mount Druitt store, located at 2 Luxford Road, was sold by a private investor and is not part of the portfolio being sold in batches by 7-Eleven and acquired from Mobil in May 2010.
It sold with a new 15-year lease that commences in January 2012 with two renewal options of five years each. It is leased to 7-Eleven with fixed 4% annual rent increases.
Charles Gonzalez from Burgess Rawson, which marketed and auctioned the 7-Eleven, says there was strong interest in the property at what was a well- attended auction.
Other properties to sell under the hammer include three retail shops in Cabramatta in Sydney’s west.
The property was bought by one of the tenants for $1.53 million, with Gonzales noting that this was $200,000 above the reserve.
With annual income of $161,000 this reflects a yield of 10.6%.
The property is leased to a pharmacy, doctor’s surgery and mini-supermarket.
 
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High yields for 7-Elevens continue to attract investors

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Melbourne’s retail sector is struggling through its toughest period since the 1960s, according to the December Herron Todd White property market report, with retail landlords letting outside the main retail strips the most affected.
According to October ABS statistics, the national annual growth rate in retail sales is 2.8%, equating to the worst growth since 1962.  Retail sales rose 0.6% in Victoria on a seasonally adjusted basis in October, having registered no growth in September, increases of just 0.3% and 0.5% in August and July and decreases of 0.3% and 1% in June and May.
Under these tough trading conditions,  HTW reports that the Victorian Small Business Commissioner has witnessed a “substantial increase in rental dispute resolution enquiries in 2011” as an increasing number of tenants found it difficult to meet their lease obligations.
“It appears that retailers who are positioned outside the main retail strips with limited exposure are most affected when there is a downturn in retail trade levels,” says HTW.
The report warns that should consumer spending continue to weaken rents might fall, which could lead to a softening in capital values into 2012.
Among the retail strips outside Melbourne CBD hardest hit has been Bridge Road, Richmond, where the vacancy rate has risen to 10.6% by mid-2011.
“[Bridge Road] has been traditionally been known for its discount stores and now has to compete with the likes of the Direct Factory Outlets and other large-scale suburban shopping centres,” says HTW.
According to the report, the exception has been well-placed retailers located in within prominent strips within Melbourne.
“Swanston Street in the Melbourne CBD, Glenferrie Road, Hawthorn and Chapel Street, South Yarra are good examples of resilient retail destinations in 2011.”
“Despite the tough retail environment, real estate agents have reported strong transactional activity, and Melbourne’s appetite for retail property is expected to remain strong in the short term,” HTW says.
“Prime Melbourne retail is very much still in high demand whilst secondary retail is perhaps harder to lease/sell.”
Large retail sales for 2011 include a two-level, freehold retail building at 269 Swanston Street, which sold in March 2011 for $6.5 million, reflecting an investment yield of 3.12% and a 20-square-metre lot on Swanston Street that sold for $2.11 million, reflected a rate per square metre of $105,500.
Outside of the CBD, leasing activity has picked up on Chapel Street, with Mexican food retailer Salsa’s taking up space in the Jam Factory. The deal was negotiated by Max Cookes and Zelman Ainsworth from CBRE retail services.
According to Cookes, the major rejuvenation of the centre has been a key attraction for Salsa’s.
Salsa joins major international and national retailers that have secured a presence within the centre including fashion heavyweight Topshop, which secured a 1,600-square-metre space within the Jam Factory for its Australian launch and is due to open this week.
Other retailers to join the centre include Lindt, Groove Train, Steve Madden, Target Urban and Nandos.
One of the previous anchor tenants of the Jam Factory was Borders Books, whose vacated space has been taken up by Topshop.
In its report, HTW said the collapse of Borders, fellow book chain Angus and Robertson and fashion chain Colorado in 2011 might have been the result of the inability of tenants to maintain current rental levels when faced with diminishing turnover.
Photo by Anna Armstrong
 
 
 
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Return to the '60s for Melbourne retail market: HTW

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Shareholders of the ASX-listed Cheviot Kirribilly Vineyard Property Group have approved the sale of four of the six vineyards the indebted group put up for sale in July this year.
Subject to various other conditions being met, the two Langhorne Creek vineyards in South Australia –Birchmores Vineyard (293 hectares) and Woodstock Road Vineyard (67 hectares) – will be sold in late December for around $6.2 million.
The sale of the two Angas Creek Vineyards in the Adelaide Hills (78 and 65 hectares) is expected to be completed in January 2012 for around $2.6 million, taking the total $8.8 million.
Two vineyards in the Clare Valley – Kirribilly Estate Stage 1 (251 hectares) and Tullymore Vineyard (200 hectares) – continue to be marketed through Colliers agents Tim Altschwager and Nick Dean, with the group hoping to sell them by April 2012.
The vineyards continue to be maintained to ensure they are productive, with tentative agreements reached to sell the fruit to various wineries, the group says.
Subject to the Clare Valley wineries being sold and the group having the support of its financier, NAB, the Cheviot Kirribilly Vineyard Property Trust will be wound up by early May 2012
The Cheviot Kirribilly Group’s lending facilities are due to expire at the end of December
<a href="https://www.propertyobserver.com.au/rural/sa-vineyards-up-for-sale-as-downturn-puts-the-squeeze-on-wineries/2011071850831" target="_blank">Cheviot Kirribilly was forced to put its 953-hectare vineyard portfolio up for sale by its financiers</a>, though the group has praised NAB for its “forbearance”, which has allowed it to continue operating.
During an address to shareholders yesterday, chairman Sean Edwards said problems for the group began in 2010 when the group had to invest in capital equipment such as frost fans and desalination equipment at a time when there was a “significant weakening in district average weighted price at the end of the 2009 vintage”.
Between 2008 and 2011, the price per tonne earned for its grapes fell by 43%, resulting in a 59% decline in revenue.
This required the group to draw on additional working capital to farm the 2010 vintage resulting in an excessive build-up of debt.
A further headwind faced in 2010 was due to climate conditions which resulted in below average yields requiring further assistance from its bankers.
Cheviot was one of several vineyard owners forced to sell this year due to the deteriorating market conditions.
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Shareholders approve Cheviot Kirribilly vineyard sales

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

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

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

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

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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