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Yesterday, following the RBA announcing it would cut rates by 0.25% to 4.25%, Twitter was flooded with tweets awaiting news of the major banks announcing their rate cuts.
The Commonwealth Bank responded with the following message:
“We are currently reviewing our interest rates in light of the RBA decision.”
Today, borrowers are being told to brace themselves for the banks not passing on the full rate cut.
This message has been flagged for some time, most notably by former Commonwealth Bank boss Ralph Norris, as he stepped down from his position last month.
Norris says the notion of the banks “automatically following the RBA” is outdated as the cost of funds lent to consumers is driven up by the troubles on global credit markets.
Norris told The Australian Financial Review at the time there was no guarantee the banks would pass on the next RBA interest rate cut.
“Nobody can give unqualified guarantees in anything in life… At this time I would have to say it will be what the situation is at the time the RBA makes its cut,” he said at the time.
In the wake of the global financial crisis, which froze international credit markets, the major banks did not pass on full RBA interest rate cuts and also increased interest rates independently of the central bank.
Speaking at the AICC property lunch in Sydney last week, outgoing Dexus boss Victor Hoog Antink hinted at a similar approach by lenders when he said there would be “potential margin creep for the banks as they deal with capital issues emerging from Europe”.
NAB was the only lender not to pass on the full 25-basis-point cut in November to its borrowers, passing on 20 basis points with its head of personal banking, Lisa Gray, saying at the time that “volatile overseas markets and impending global banking security requirements had pushed up the costs of providing funds for lending”.
The threat of banks not passing on full rate cuts was also acknowledged by AMP Capital chief economist Shane Oliver in his regular insights piece.
“Australian banks have been warning their funding costs have been increasing. If this intensifies, then there is a risk that banks may actually increase their lending rates – both business rates and mortgage rates – independently of the RBA,” Oliver said.
In his September note on the outlook for the banking sector (before the crisis in Europe reached its current level), JP Morgan analyst Scott Manning said the discounting of mortgage products by the major banks was reaching a point of being loss making for banks to originate new mortgages.
<a target="_blank" href="/news">Bank of Queensland</a> and <a target="_blank" href="/news">ME Bank </a>have already announced they will pass on the rate cut in full.
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Borrowers wait anxiously to learn if banks will pass on rate cut

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Brisbane-based Bank of Queensland is the first significant lender to announce that it will pass on the full 25 basis points cut announced by the Reserve Bank earlier today.
The bank will cut its standard variable home loan by 25 basis points as of December 16, bringing its standard variable rate home loan to 7.36% per year. 
BOQ chef executive and managing director Stuart Grimshaw says with Christmas just weeks away, giving customers this additional relief just makes sense. 
“Passing on the full 25-basis-point cut was the right thing to do last month and it’s the right thing to do this month,” he says.
However, he hinted that passing on full rate cuts in the future may be a challenge. 
“Our cost of funds do continue to increase so pricing remains a balancing act of shareholder and customer interests, but with Christmas less than three weeks away, we know our customers will appreciate the extra dollars in their wallet as they head into Christmas celebrations and family holidays,” he says.
 
 
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Bank of Queensland the first to pass on rate cut

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Westpac chief economist Bill Evans says European concerns weighed heavily on the minds of the Reserve Bank board members in their decision to cut the cash rate by 25 basis points to 4.25%.
Evans says a big difference in the <a target="_blank" href="https://www.propertyobserver.com.au/economy/slowing-global-growth-subdued-credit-growth-factors-in-rate-cut-glenn-stevens/2011120652696">December monetary policy statement</a> compared with that made in November are to do with “global developments, specifically around Europe”.
“Whereas in November the governor referred to European governments ‘making progress’ he now talks about ‘still seeking to craft a full response’,” Evans says.
“He also introduces the important dimension of financing conditions referring to them being ‘much more difficult’ and indeed does not only refer to European entities but also talks about for Australia ‘term funding conditions have become more difficult’.
“He concludes that there is now ‘the likelihood of a further material slowing in global growth has increased’. We also see specific recognition of the reversal in commodity prices which not only reflects weaker global but also takes some further pressure off inflation.”
In addition to the comments about Europe, Evans says the key reasons behind the move were also consistent with the bank’s observations.
“The statement by the governor had many similarities with the statement on November 1, when he outlined the reasons for the decision to cut rates from 4.75% to 4.5\%. This covered issues such as: China's growth slowing as intended; a moderation in the pace of global growth; Australia's growth around average levels; strong investment in the mining sector; cautious behaviour by households; unemployment close to 5%; wage pressures easing; and of course inflation likely to be consistent with the 2 to 3% target in 2012 and 2013.”
Evans says Westpac remains comfortable with its July forecast that the easing cycle would cover 100 basis points, with the last rate cut being around the middle of 2012.
“We are comfortable maintaining that view and see nothing in this statement to suggest that the bank rules out any further adjustments.
“Indeed we do not expect to see developments, either global or domestic, over the course of the next three months that would allay the concerns which have clearly motivated the bank's recent two decisions. We would expect the next move to be February being a 25-basis-point cut to be followed a further reduction in May,” he says.
ANZ also forecast the RBA to cut rates today.
Katie Dean, head of Australian economics at ANZ Research, says the bank now expects the RBA to cut the cash rate by a further 25 basis points, to 4%, at the February 2012 board meeting.
“With global risks likely to remain heightened (and still potentially worsen), the Australian price pressures well contained, and domestic unemployment still likely to head higher, we see little risk that domestic inflation will be ignited by the further boost to growth afforded by another modest monetary policy easing,” she says.
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Europe concerns weighed heavily on RBA: Westpac's Bill Evans

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At its meeting today, the board decided to lower the cash rate to 4.25%, effective December 7, 2011.
Growth in the global economy has moderated this year after a strong performance in 2010. Some of the slowing reflected temporary factors, and as these passed, the pace of expansion in the United States and much of Asia began to pick up around mid year. China's growth has been slowing, as policymakers there had intended. Trade in Asia is now, however, seeing some effects of a significant slowing in economic activity in Europe.
The sovereign credit and banking problems in Europe, to which European governments are still seeking to craft a full response, are likely to weigh on economic activity there over the period ahead. Financial markets have experienced considerable turbulence, and financing conditions have become much more difficult, especially in Europe. This, together with precautionary behaviour by firms and households, means that the likelihood of a further material slowing in global growth has increased. Commodity prices have reflected this, declining further over recent months and taking pressure off CPI inflation rates. This has increased the scope for some easing in monetary policy in a number of countries.
Information about the Australian economy suggests output growth has been close to trend, with demand growth stronger than that. The terms of trade have now peaked and will decline somewhat in the near term, but they remain very high. In response, investment in the resources sector is picking up very strongly, with much more to come. Some related service sectors are enjoying better-than-average conditions. In other sectors, changed behaviour by households and the high exchange rate have had a noticeable dampening effect. The unemployment rate has increased a little since mid year, though it remains close to 5 per cent.
CPI inflation on a year-ended basis remained above the target at the latest reading, due to the effects of weather events last summer, but is now starting to decline as production of key crops recovers. Moreover, with labour market conditions now softer, the likelihood of a significant acceleration in labour costs outside the resources and related sectors in the near term has lessened. Accordingly, the Bank's current judgement is that inflation is likely to be consistent with the 2–3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme.
The reduction in the cash rate as a result of the Board's previous decision flowed through to lending rates, which are now around their average level of the past 15 years. Short-term market interest rates have tended to decline a little further in recent weeks, though term funding conditions for financial institutions have become more difficult. Credit growth remains subdued and asset prices have declined further over recent months. The exchange rate has been quite variable over the past few months, but remains at an historically high level.
Overall, the board concluded, on the basis of all the available information, that the inflation outlook afforded scope for a modest reduction in the cash rate. The board will continue to set policy as needed to foster sustainable growth and low inflation over time.
<a target="_blank" href="https://www.rba.gov.au/media-releases/2011/mr-11-28">Statement by Glenn Stevens, Governor: Monetary Policy Decision</a> 
 
 
 
 
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Slowing global growth, subdued credit growth factors in rate cut: Glenn Stevens

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The Reserve Bank has cut the official cash rate to 4.25% following its December monetary policy meeting.
The decision will be particurlarly welcomed by the depressed parts of the economy including the housing sector, construction and retailing, <a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-body-says-50-basis-point-cut-necessary-to-restore-sector-as-retail-crosses-fingers-for-rate-cut/2011120552672">which were hopeful of some assistance prior to Christmas</a>.
The rate cut, provided it is passed on by the banks, should help stimulate the housing market and demand for mortgages.
The Melbourne Cup Day rate cut (0.25%) <a target="_blank" href="/news">helped drive an 18.4% increase in mortgages processed by AFG mortgage brokers</a>.
Before the announcement, the dollar was trading at around $1.027. Since the announcement it dropped to $1.02.
 
 
 
 
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Relief as RBA cuts rates by 25 basis points

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The increasing number of properties available for sale in November will put more downward pressure on house prices, according Louis Christopher, managing director of SQM Research.
According to SQM Research calculations,  stocks increased by 1.5% in November to 388,848 nationally, with an additional 5,631 properties available for sale.
At the current level of stock, Christopher says the market is now “generally considered to be oversupplied” meaning it is easier to find properties to purchase, reducing demand and competition.
Christopher says national stock on market figures are “undoubtedly edging closer to levels reached in late 2008 – a period where house price falls were recorded in many parts of the country”.
House prices started falling back in the September quarter of 2010 when stock levels were at a much lower 307,000.
“Much still depends on the events on Europe. A credit squeeze event would certainly postpone any recovery here and would cause a continuation of the current price declines right through 2012. Certainly for now it means those who are buying in this market are taking a bet on Europe.”
<img src="/images/stories/sqmdec6.gif">
Source: SQM Research
The only capital cities to experience monthly declines in stock levels were Brisbane and Darwin, falling by 0.1% and 0.5% during the month of November and coming to a total of 30,205 and 1,575 respectively.
The capital city to experience the largest monthly growth in listings was Canberra, climbing by 5.9% during the month of November and coming to a total of 2112.
Over the past 12 months to November, the stock of listed properties up 16.7% with the biggest rises in Hobart (47.9%), Melbourne (47.2%), Canberra (21.5%) and Adelaide (21.3%).
Sydney listings are up 16% for the year with Perth the only major city to experience a decline in listings over the past year, down 0.8% to just over 20,000 listings.
 
 
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Increase in listed properties will drive property prices down further: SQM

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“Stalled”, “subdued”, “dreadful”, “a year to forget” is how valuers from Herron Todd White have described the performance of Australia regional retail property markets in 2012.
Herron Todd White’s team of valuers cast their eye across markets from NSW’s Southern Highlands to the Gold Coast to south-western WA and found very few bright spots as regional centres took a hit from an overall drop in consumer confidence and a “flight to safety” mentality among buyers seeking primarily blue-chip investments.
In the NSW Southern Highlands, the market remained “subdued throughout 2011 with most retailers feeling the pinch from weak economic conditions”.
“Although relatively stable, the market has not fully recovered since the GFC,” the December report says.
“Current conditions are reflected in the vacant shops now evident along prime strips such as Bong Bong Street in Bowral.”
Despite the poor year, the outlook appears bright, with Coles buying the 4,936-square-metre Oxley Mall in Bowral for $14.75 million in May with plans for renovation and expansion.
In June, the Charter Hall Retail REIT acquired 50% of the Highlands Marketplace, in Mittagong, for $23.6 million from Woolworths, at an initial yield of 8.1%. The sub-regional shopping centre comprises 8,241 square metres and 790 car spaces and is anchored by Woolworths and big W with 36 speciality retail shops.
East of the Southern Highlands, the Wollongong retail market was dominated by the “on again, off again, on again drama” surrounding the GPT West Keira development.
The West Keira development is a $200 million project to expand the Wollongong Central shopping centre by 18,000 square metres adding 80 specialty stores.
“While latest reports suggest GPT has committed to moving forward with the project, many are still sceptical,” says HTW.
“This mirrors in personality of the current economy with 2011, which will be remembered for its high level of volatility, primarily in the global financial markets. There is no doubt economic uncertainty and volatility have had an impact on the local retail market.”
Projects that did proceed include the commencement of Stockland’s Shell Harbour shopping mall expansion.
There Wollongong City Council is also examining plans to revamp Crown Street Mall, which is in need of an upgrade. However, the proposal remains stalled with vehicle access ruled out.
In nearby Newcastle, HTW reports that the retail market “appears to have stalled under the weight of stock on the market with the GPT owned Hunter  Street  mall sites, failing to sell to local developers Buildev and now been marketed as eight separate blocks
Moving across into regional Victoria, local small retailers have advised HTW that 2011 is a year they would rather forget with the refurbishment of the Langtree Mall, the town’s retail hub taking most of the year to complete and having had a “detrimental impact on shopping patterns in the city heart to the advantage of Mildura’s Centro regional shopping centre”.
In Echuca on the Victoria/NSW border, the commercial market experienced difficulties but the year was punctuated by sales of several landmark properties including the Old Flour Mill and a number of other CBD shops at yields around 7%.
Giving an indication of the state of the retail market, the Campaspe shire has received an offer of $2.38million for a site it previously acquired in May 2006 for $3.06million.
On the Gold Coast, the 2011 sales market was dominated by sales under instruction by receivers and managers, as more and more owners have been pushed to their financial limit.
“This has resulted in a greater number of sales during 2011 as vendors are forced to meet the market rather than hold out for better days,” says HTW.
There were some signs of better things to come in 2012 with investors started to come back into the market towards the latter part of the year “with a shift in focus to service type locations, such as the old fashioned local convenience centres”.
“We noted a sale of the Mount Coolum Shopping Centre, anchored by an IGA, which achieved a sale price of $6.1 million with an analysed yield of 9% and a weighted average lease of 2.1 years.  Agents reported that interest in this type of asset had improved during the year.”
In South Western WA, the overall the retail property market was subdued during 2011 with very few sales occurring.
“Most retail properties are tightly held and the limited supply has helped to balance the weak demand,” according to HTW.
“Like many areas around the country, business performances in the small retail sector have been poor.
“As a consequence, rental rates and demand for retail space has fallen, with most retail markets in the towns of the south-west having experienced increased vacancies during the year. This is particularly evident in the Bunbury CBD where currently there are a higher number of vacancies than experienced for quite some time.”
At present, prime street front shops in Bunbury’s CBD can be rented for $250 per square metre net per annum.
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Regional retail property had a 'year to forget' in 2011: HTW

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Investors have responded favourably to management of the Charter Hall Office REIT conditionally accepting a higher takeover proposal from an international investor consortium made up of Reco Ambrosia Pte Ltd (an affiliate of the Singapore Investment Corporation Pte Ltd) and the Public Sector Pension Investment Board of Canada.
Charter Hall Office REIT shares resumed trading this morning after being suspended at close of trading on Thursday , jumping nearly 5% in the first half hour to $3.58 (from $3.42 a share).
Under the privatisation proposal, shareholders will receive $2.49 per share; 6¢ more than the revised October 5 offer $2.43 and 10¢ up on the $2.39 per share) offered on August 29 for the $1.5 billion Australian office portfolio.
The revised offer represents a 4.2% discount to net tangible assets of $2.60, up from the 9.1% discount in the original August offer and values the trust at around $1.88 billion.
The Charter Hall Group, which owns 15% of the office REIT (equating to $141 million) says it will join the consortium subject to final documentation being agreed and executed.
Shareholders will remain entitled to net proceeds and accrued earnings from the sale of the US portfolio, which is currently underway.
Under the agreement, the current Charter Hall management team will retain control of the office trust, a condition to the proposal proceeding to implementation.
In July the current management of Charter Hall Office REIT saw a challenge from a consortium of US hedge funds to replace it with a team from Bill Moss Capital Management and liquidate the trust.
Other conditions that need to be met include implementation of an implementation agreement by December 22 and is subject to the consortium completing a satisfactory due diligence of the trust and its assets.
Should all go according to plan shareholders will meet in March to consider the proposal.
Roger Davis, independent chairman of the Charter Hall Office management, says that in the current environment of instability of capital markets both locally and globally, the new offer is the most “compelling and “certain value proposition” for the trust.
 
 
 
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Charter Hall share price jumps as trading resumes

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The decision by <a href="/news">Smartline and the Mortgage Gallery</a> to merge their businesses has created a new group to take on some of the biggest and most established mortgage broking franchises. Here’s a rundown of some of the biggest players in the market:
414
The number of <a href="/news">Mortgage Choice</a> franchises
350
The number of <a href="https://www.propertyobserver.com.au/showcase/wayne-ormond-s-refund-home-loans-owes-creditors-millions-as-relations-with-franchisees-turn-sour/2011111652384">Refund Home Loan franchisees</a> (currently in administration)
265
The number of ANZ Mobile Lenders
240
The number of franchises in the newly merged <a href="/news">Smartline and Mortgage Gallery</a> business
140
The number of <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=www.propertyobserver.com.au+john+symond&amp;source=web&amp;cd=1&amp;ved=0CB0QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fnow-may-be-the-time-to-fix-your-mortgage-john-symond&amp;ei=qz_cTrKjMOmZiQfhwtnCDQ&amp;usg=AFQjCNHjpyH2MZmeozKA1YWVh9g_Cl3rOg&amp;sig2=GGuHM2NLTpm5yMtPjYkdYg">John Symond’s</a> Aussie Home Loans stores
80
The number of <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=yellow+brick+road+property+observer&amp;source=web&amp;cd=1&amp;ved=0CC4QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Findustry-news%2Fthe-apprentice-saved-yellow-brick-road-%2450-million-mark-bouris%2F2011112852573&amp;ei=YD_cTrquAYaviQf35b34DQ&amp;usg=AFQjCNG3SW_rSiEmynkfbos-YFRFz11ByA&amp;sig2=cygdz4IzX34ksMQO3WYU1g">Yellow Brick Road</a> branches
74
The number of <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=www.propertyobserver.com.au%20rams&amp;source=web&amp;cd=1&amp;ved=0CBwQFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Frams-undercuts-all-major-banks&amp;ei=wj_cTsmXOcePiAeXpJTpDQ&amp;usg=AFQjCNEWrjwU0c4_PqClsVGlidZ8WAVjxA&amp;sig2=XnUCfavvB8o1izwrA13f5w">Rams Home Loans</a> centres
50
The number of LJ Hooker Financial Services offices
40
The number of Mortgage House branches
21
 
The number of Club Finance franchises
17
The number of <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=resi%20mortgage%20property%20observer&amp;source=web&amp;cd=1&amp;ved=0CFgQFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fmortgages%2Fmortgage-wars-not-always-good-for-borrowers-resi&amp;ei=3D_cTtXeIOutiQetlLXtDQ&amp;usg=AFQjCNE0l2m9u_rb3jK3v8VMBDHaX-65Hg&amp;sig2=PebdY6gmR7O_42psu8Y1zw">Resi Mortgage</a> branches
Note: Numbers indicate stores, branches and offices (not individual brokers) calculated based on website listings.
 
 
 
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Mortgage broking franchises by the numbers

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Investors looking for solid returns in commercial property might want to consider Perth. 
According to a new forecast, Perth office space will need to grow by 50% to 2 million square metres by 2020 to meet demand “driven by the state’s new wave of resources projects”. 
The report, Property Demand and Resource Production Growth, prepared by consulting firm ACIL Tasman on behalf of Savills, says the next resource production expansion phase will be unprecedented, with the gross value of high likelihood projects totals some $220 billion “dwarfing” previous expansion phases. 
“Office demand projections based on resource production suggest an annual growth of around 4% in required office space. This implies total demand for just over two million square metres in 2020, an increase of around 50% from current levels.”
<img width="470" src="/images/stories/perthoffices.gif">
Note: Resource production value is measured at 10-year average prices
Data source: Department of Mining and Petroleum WA and ACIL Tasman modelling 
As an example, it points to the announcement of the Gorgon gas project final investment decision as an example that led to noticeable fall in Perth office vacancy rates. 
The Perth office market is already booming, according to a July report by Jones Lang LaSalle, which says Perth is the tightest CBD office market, with vacancy rate just over 5%.
Prime gross effective rents in Perth increased by 3.9% in the second quarter of 2011 and have risen by 11.2% since the trough in the rental cycle was recorded in the third quarter of 2010. 
The Savills- commissioned report notes that while in the past office demand in Perth has been somewhat erratic, “the upcoming investment phase promises to break this cycle and create a substantial and lasting increase in office demand in Perth”. 
The report concludes that committed supply additions will not meet this level of demand, therefore putting upward pressure on office rents. 
Paul Craig, Savills WA managing director, says the amount of projected demand for additional office supply by 2020 “clearly highlights the impending shortage of Perth office supply as WA’s new wave of resources projects come to life”. 
“With an extended period of mining prosperity on the horizon in WA, underpinned by major infrastructure investment, low unemployment levels and population growth surpassing the national average, demand for prime Perth CBD office space will continue to grow and increase pressure on availability,” he says. 
“Obviously, this is great for landlords or anyone representing landlords. Vacancy is already low, is set to tighten further in the next 12 months and then with no new supply committed to proceed from 2014 onwards, rents should continue to climb,” he says. 
Besides pushing up demand for office space, the upcoming extraordinary resources growth phase will benefit the entire Western Australian economy, transforming it from almost solely driven by minerals and energy production to a more integrated economy also driven by technology and knowledge. 
Craig acknowledges that this would not be good news for tenants. 
“There are already limited opportunities and tenants with substantial corporate requirements will struggle to find space, and the cost of renting that space will continue to rise. When new opportunities do arise tenants will have to move quickly to secure them or prepare for a bidding war.” 
Craig says Perth will have to wait for major new developments such as Waterfront, City Link and Riverside to be delivered before there is significant easing in office market undersupply.
 
 
 
 
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Mining boom to push up Perth office rents over next decade: Savills

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;

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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."

[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.

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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.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

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

Larry Schlesinger

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