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Property valuation firms need to diversify into becoming impartial buyer’s advocates to survive, according to Greville Pabst, chief executive of WBP Property Group.
Pabst says there is push among firms to move from valuation into the advisory space to “help consumers select, buy and invest in good investment-grade property”.
“The whole process of buyer and vendor advocacy is a new arena for valuers to play in,” Pabst tells Property Observer
“People still hang on the words of the estate agent, even though they are acting on behalf of the vendor.
“[On the other hand], a valuer’s backing is completely independent,” he says.
WBP has been building up its advice business in 2011 and will look to grow it further in 2012 and over the next five years.
“We see it as quite a dynamic area over the next few years.”
Pabst says he is still astounded that people will buy a $1 million home in the inner suburbs of Melbourne and Sydney without  seeking any professional advice yet they would never buyer shares or gold bullion without first seeking financial advice.
“People think because they live in a house they are property experts – most people are not getting advice before they invest,” he says.
“In New York, no one buys without engaging a buyer’s agent first.”
His comments follow WBP’s alliance with Queensland-based firm Herriots. 
He forecasts the industry to shrink to just a handful of firms driven by a desire from the major banks to partner with larger, national firms. 
“We are generally going to see more consolidation in the future. At the end of the day the Australian market will be controlled by four or five super groups. It’s no different to any other industry, be it accountancy, retail, banking etc,” he says. 
“The writing has been on the wall for small firms for some time.” 
WBP’s alliance with Herriots will allow it to extend its coverage into Queensland, with the firm already having a strong presence in Victoria, NSW, South Australia and WA. 
“Herriot’s has good regional coverage with 10 branches,” he says. 
The merger will consolidate WBP’s standing among the top five firms in Australia. 
Under the arrangement Herriots will adopt a new name and logo and is known as WBP Herriots QLD from December 1, 2011, with the alliance to provide residential, commercial and specialised property valuations for Australia’s leading mortgage lenders, businesses and thousands of private consumers.
Herriots Property Valuers specialises in both residential and commercial property valuations. 
The valuation industry enduring a tough year following moves by the major banks requiring firms to take on more risk in the event of a loan going bad, <a href="/news">driving up professional indemnity insurance premiums</a>. 
Pabst says this issue has been resolved with the banks looking to forge deeper relationships with the larger valuation firms.
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Valuers must diversify to survive: WBP

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Australian Industry Group chief executive Heather Ridout has been appointed to the board of the Reserve Bank of Australia, and Philip Lowe has been appointed the bank's deputy governor.
The new appointments were announced by Federal Treasurer Wayne Swan and will take effect from February 14, 2012.
Ridout will succeed Graham Kraehe and has been appointed for a five-year term.
Lowe’s seven-year appointment succeeds Ric Battellino, who will retire from the RBA after 39 years in February 2012.
“Mrs Ridout brings to the board both an extensive business background and a strong understanding of public policy. Her understanding of the manufacturing sector in particular will be valuable to the board at a time when different sectors of our patchwork economy face different pressures,” Swan says.
Aside from her role as chief executive of AIG, Ridout also serves on the boards of AustralianSuper Pty Ltd., Australian Super Trustee Board, and the Australian Research Alliance for Children and Youth.
Ridout was quick to acknowledge her appointment, saying it would be an “honour to be appointed to this most important position”.
“I have an abiding interest and commitment to strong and balanced economic policies and to have the opportunity to serve Australia in this role will be a great privilege,” she says.
Swan also praised Lowe and says he will suit his new role.
“Dr Lowe's promotion comes after a very distinguished career at the RBA beginning in 1980. He served as head of financial institutions and infrastructure division at the bank for international settlements between 2000 and 2002, where he published influential work on financial stability matters. Between 2004 and 2009, Dr Lowe oversaw the RBA's work on issues related to financial stability and payments system policy,” says Swan.
He has served as the economic assistant governor since April 2009 and has been the chief economic adviser to the governor and the Reserve Bank board.
 
 
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Heather Ridout joins RBA board

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Centro Retail Australia, the new entity to emerge from the amalgamation of assets and managed funds from the Centro Property Group, has gotten off to a solid start in its first day of trading on the ASX.
The share price closing at $1.74, valuing the company at $2.3 billion, and the share price opened at $1.70.
The new stock bearing the code ‘CRF’ hit a high of $1.825 in earlier trading, with 3.7 million shares changing hands during the course of the day.
It received the green light to commence trading following a four year battle to find a way out of financing problems dating back to the GFC after <a href="https://www.propertyobserver.com.au/industry-news/centro-restructure-gets-final-nod-of-approval/2011120252651" target="_blank">former auditor PricewaterhouseCoopers decided not to appeal a NSW Supreme Court decision </a>in favour of the restructuring plan.
This followed major shareholders and bond holders agreeing to the restructuring of the company and the formation of the new retail fund on November 22 guaranteeing them a pay out of around 5¢ per share.
As part of the restructure, the $2.7 billion owed to Centro’s senior lenders that was due to be paid by December 15 will be cancelled in exchange for substantially all of Centro’s Australian assets and interests being transferred to these lenders.
 
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Centro starts trading anew 

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The Charter Hall Office REIT remains in a trading halt ahead of announcement from a Macquarie Group-led consortium of a revised higher offer for the listed property trust.
Share trading in the REIT was suspended at $3.42 a share on Friday pending the release of an ASX announcement by the trust and will remain suspended until tomorrow morning or until the announcement about the offer is released to the market.
The Macquarie Group-led consortium, which includes the Government of Singapore Investment Corporation, Canada’s Public Sector Pension Investment Board and the trust’s head stock Charter Hall, offered $2.39 per share (equating to $1.74 billion) on August 29 for the $1.5 billion Australian portfolio. (It also offered $1.13 per share for the expected capital return from the sale of US assets.)
On October 5, the consortium raised its offer to $2.43 per share for the Australian portfolio with shareholders entitled to the proceeds from the US assets sale. The improved offer equated to a discount of 4.9% to the gross value of the assets held in the portfolio as of June 30, 2011.
The trust’s independent director committee advised shareholders that the current offer was not adequate and said it would provide the consortium with further due diligence material to assist it in improving its offer.
Earlier this year the REIT’s Charter Hall management team <a href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930">escaped a bid by a consortium of US hedge funds</a>, which hold 20% of the trust, to replace it with a team from Moss Capital Funds Management.
The Charter Office Hall REIT owns and manages 19 properties in Australia with a combined value of $1.5 billion. Assets include 50% of the Citigroup Centre and No.1 Martin Place in the Sydney CBD and 100% ownership of the Argus Centre and 150 Lonsdale Street in Melbourne.
It is continuing to sell down its US portfolio with a further two offices in New Jersey and Atlanta being sold in recent months reducing its current holding to 12 properties.
 
 
 
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Charter Hall Office REIT trading halted as it awaits higher Macquarie offer

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Ahead of the tomorrow’s RBA interest rate meeting, the major banks are playing down the likelihood of deep rate cuts in 2012 as occurred during the late stages of 2008 when rates fell by 300 basis points in the space of four months.
Westpac and ANZ expect the RBA will cut rates tomorrow from 4.5% to 4.25% with the weak housing sector identified by Westpac as requiring “urgent action”, while the Commonwealth Bank expects the central bank to hold off until February as European concerns ease following the latest budgetary moves in Italy.
NAB expects the RBA to keep the cash rate on hold at 4.5% with a 25-basis-point cut in February although it says the probability of a rate cut in December has heightened.
Less than 15% of economists surveyed by Bloomberg and the Commonwealth Bank expect the cash rate to drop below 4% by the end of 2012, with more than 55% expecting the cash rate to settle between 4.25% and 4.5%.
Consumers appear to be in agreement with economists, with demand for fixed-rate mortgage products – in some cases a whole percentage point lower than lenders’ variable rates – continuing to rise. 
According to November figures from Mortgage Choice demand for fixed-rate loans have reached their highest level since April 2008, accounting for 20% of all new loan approvals up on the six-month average of 16%, the 12-month average of 14% and this period last year, when only 11% of new loans were fixed-rate loans. 
The cycle of fixed-rate cuts has continued, with Heritage Bank today announcing it will cut the interest rate on its three-year fixed-rate products from 6.29% to 5.95% Tuesday, December 6. 
Once again the Reserve Bank will have to way up the global situation and in particurlar Europe against a moderate strengthening in the local economy.
<img src="/images/stories/expected.gif">
Westpac’s chief economist Bill Evans, the only major bank economist to tip a November cash rate cut as far back as August, still expects a further 75-basis-point rate reduction over the course of the current easing cycle, but says tomorrow’s decision is shaping up as a “tough one”.
“It will depend on the degree of urgency with which the RBA views global developments weighed against a policy stance already around neutral; the attraction of waiting to assess these developments; and evidence of an acceleration in mining investment but more weakness in the housing sector. 
“We see the balance of risks favouring another 25-basis-point rate cut,” he says. 
“Our assessment is that conditions have deteriorated significantly in Europe and Asia since the last board meeting on November. 
“Through November we have seen increasing acceptance by both private and public forecasters that Europe will be in recession in 2012. 
On the domestic front, Evans says the “two-speed” or “patchwork economy” is still very much in play, with the housing sector among the weak spots in the economy. 
“While most of the data still pre-dates the November rate cut, there have been no signs of stabilisation in house prices across most capital cities. Indeed, some corrections are now becoming quite advanced,” he says. 
“A particular standout was the very weak October dwelling approvals which contracted by 10.7% in the month including a 7.5% drop in private houses. These figures do point to a greater degree of urgency for RBA action. 
“Clearly there will be a significantly weaker profile in housing construction than we had thought; a 5% to 10% decline could take about 0.3 to 0.5 percentage points off GDP.” 
The release of third-quarter GDP figures a day after the December meeting will be closely watched by the RBA as a guide to future interest rate decisions. 
Westpac is forecasting GDP growth of 1.3% (up from its last forecast of 1.2%) equating to annual growth of 2.4% driven by a 36% spike in infrastructure work, but with housing construction expected to be flat compared with a range of 1% to 1.25% being forecast by the RBA and the Commonwealth Bank. ANZ is forecasting quarterly growth of just 0.7%. 
Commonwealth Bank chief economist Michael Blythe suspects the decision to cut rates in November is a close thing, indicating that “every [monetary policy] meeting is 'live' while the European situation plays out”.
Just four days ahead of the December 6 meeting, Blythe says the bank has pencilled in a February cut but said a December cut is still possible should markets turn sour.
Given the developments in Italy over the weekend with the Italian cabinet adopting $26 billion worth of tax hikes, budget cuts and pension reforms to avoid bankruptcy, from the Commonwealth Bank’s point of a view the chance of a rate cut has eased.
However, Blythe says economist and markets are in agreement that the next move is down, though “opinions differ on how far the easing may go".
“Global issues underpin the rate-cut case. Domestic issues suggest a need for caution,” he says.
Blythe points to RBA forecasts of underlying inflation picking up into the upper half of the 2% to 3% target range as well as national accounts should showing households “are a bit more focused on savings and paying off debt and a bit more cautious about spending”.
“Policymakers have spent a fair amount of time getting households to this point to make room for the mining boom to roll through. They are unlikely to want to jeopardise these changes by overstimulating the household sector. 
“A genuine European implosion would, of course, outweigh these domestic considerations in the policy debate,” he says. 
ANZ has brought forward its forecast of a 25 basis points cut in February 2012 to tomorrow’s meeting.
Ivan Colhoun, head of Australian economics and property research at ANZ, says “a lot still has to go wrong before market expectations for the cash rate to fall to 3% will be met”. 
“Global growth developments therefore support a further moderate easing in the Bank's policy stance, but to date still seem far from the dramatic and extremely negative developments experienced in the second half of 2008,” he says. 
NAB economist Alexandra Knight says the bank expects further easing in the underlying inflation rate in early 2012, but with inflationary pressure picking up over the second half of the year. 
“At this stage we're forecasting a 25bp rate cut to 4.25% in February 2012 to provide some near-term reprieve to interest-sensitive sectors, although this will be data dependant. 
“Given our expectation for higher underlying inflation in 2013, we expect the RBA to reverse any near-term rate cuts, taking the end point back to 4.75%.”
In a note released on October 26, the NAB economics team headed by chief economist Alan Oster said “market pricing, of around 100 points of cuts, is in our view too aggressive”. 
“While it is likely that the RBA will cut again in early 2012 (February), we would caution that that is not a done deal. 
“By then activity will be picking up and employment will be strengthening. Nonetheless, we have tentatively included a February cut in our forecasts very much driven by the near-term inflation outlook – we expect fourth quarter underlying inflation (due late January) to rise a modest 0.6% with the year ended rate unchanged at 2.5%.”
 
 
 
 
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Banks expect rate cut soon, but no 2008-style cutting spree

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Hotels have delivered the greatest total return (rental income and capital growth) of all commercial assets, according to third-quarter Commercial Property Index results released by the Property Council of Australia and real estate information group IPD.
Over the last 12 months the hotel sector has delivered total returns of 17%, significantly higher than those generated for office, retail and industrial assets, which all returned about 10%.
Hotels delivered both the best income growth at 8.9% and top capital growth at 7.5%.
The next best income generating assets were industrial assets (8.6%), while the next best capital growth assets retail assets (3.1%).
The retail property sector was the only commercial asset class where total returns declined over the quarter, falling from 10.7% to 10.4%.
Industrial assets returns increased from 9.4% to 10% while office asset returns were unchanged at 10.2%
<img src="/images/stories/ipdnov30.gif">
Overall, the commercial property index showed a total return of 10.5% for the year ending September 2011 made up of a positive 7.5% income return and positive 2.9% capital growth.
This result represents a slightly lower total return in comparison to the previous quarter of 10.6%. The result is still slightly above the long-run average return of 10.1%.
Anthony De Francesco, managing director of IPD in Australia and New Zealand, says the third-quarter results suggest that the commercial property investment cycle has stabilised. 
“The moderation in returns is underpinned by a softening economy and unfavourable capital market conditions. We expect the property market to continue to soften over the next few quarters below the long-run average return,” he says. 
“IPD expects cap rates to remain relatively steady over the short-term given the softness of space markets and increased uncertainty in global capital markets. The persistence of the Euro crisis is likely to keep capital markets on edge and cause ongoing volatility. This will adversely impact investment performance for commercial property and competing asset classes.”
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Hotels outperform all other commercial sectors: IPD

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Attempts by the Queensland government to stimulate the building of new housing with its $10,000 building bonus have failed dismally, with the state leading a nationwide fall in building approvals in October, according to ABS statistics.
The sunshine state recorded a 19.5% drop in building approvals for the month, leading a 10.7% nationwide slump.
The figures are revealing since potential new home buyers had a full two months to digest the $10,000 incentive. The scheme was introduced on August 1 and will run until January 31, 2012. The boost is available to all class of buyers  (including investors) buying or building a new house, townhouse or unit under $600,000,
At an investor conference last week, Stockland CEO Matthew Quinn highlighted the poor take up of the grant with just 1,200 applications lodged to date equating to $12 million – the Queensland government has set aside $140 million for the scheme.
There were also big falls in approvals in Victoria (18%), Tasmania (12.9%) a modest decline in South Australia (3.3%) and flat growth NSW (0.4%) and the ACT (0%).
The only state to register an increase was Western Australia, where approvals were up 2.1%.
For the last 12 months building approvals – a leading indicator of future residential construction activity – are down 29.8% for the year
The outlook for units is particurlarly bleak, with approvals declining 16.8% in October following a fall of 31.6% in September to be down a massive 44.6% for the year.
Private house approvals declined 7.5% in October following a modest rise of 0.7% in September to be down 15.4% for the year.
Westpac senior economist Matthew Hassan warned of a “hard landing” for new construction and described the October data as “disconcertingly weak” particurlarly given consensus expectations of a rise of 3.3%.
“It suggests private sector houses are taking a sharp leg lower despite recent firming in finance figures and that the residual weakness in apartments apparent once a couple of large projects are removed from the August numbers is indeed pointing to an accelerated weakening,” Hassan says.
“The RBA's decision to cut rates in November may stem the flow but dwelling construction, which makes up 5.7% of GDP, now looks likely to be a considerably larger drag on growth in 2012,” he says.
Industry body the Master Builders Australia says the October figures indicate that the negative trend that developed one year ago is worsening.
“Confidence in the residential sector has plummeted, and although this figure predates the November rate cut, the Reserve Bank will need to do more to turn the situation around,” says MBA chief economist Peter Jones.
“Activity in both private sector houses and other dwellings (units and apartments) is sliding alarmingly after a bleak run of results through the course of 2011,” he says.
“The latest building approval figures are in line with the findings of recent Master Builders’ national surveys that reveal the extent of the deterioration in residential building conditions.”
“Sales and forward orders have fallen away dramatically in the past year as cautious clients, overseas events and difficulties accessing finance work against the industry,” Jones says.
“The immediate challenge is to restore confidence and drive a private sector recovery in the building sector.”
Jones says the residential building industry is banking on further rate cuts to “help boost confidence and stabilise an uncertain market”.
HIA chief economist Harley Dale says the October figures highlight the urgency of acting in late 2011 on both the monetary and fiscal policy front. 
“Such action would both shore up confidence and reduce the risk of housing activity plumbing the depths last seen during the GFC,” he says.
 
 
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Queensland leads national fall in building approvals, despite boost

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Demand for Australian commodities could take a hit if cooling Chinese property market continues to slump. 
According to ANZ’s China economists Li-Gang Liu and Zhou Hao, Chinese authorities have “been actively cooling an overheating property market for the last two years”, with both Chongqing and Shanghai “experimented with a property tax”. 
In addition, more than 20 first- and second-tier cities (the major capital cities and secondary provincial capitals) have imposed a “non-resident purchase restriction policy”, while an ambitious public housing program that aims to build 10 million affordable houses in 2011-2012 and 36.5 million by 2016 is expected to substantially reduce demand in the private housing market in the foreseeable future. 
<img src="/images/stories/china.gif">
“These policies have hit the property sector hard: transaction volumes have declined significantly, first in the top-tier cities, and then the second- and third-tier cities. New property transaction volumes declined by more than 30% in the first ten months of 2011, compared with the same period in 2010,” the bank says. 
“In October, the economy witnessed the biggest price decline since the introduction of the 70 city indices in January 2011: new residential property prices in 33 cities have declined on a monthly basis, while prices in another 23 have remained flat,” Li-Gang Liu and Zhou Hao report.
<img src="/images/stories/china2.gif">
 They warn that because the property sector is a “central pillar for the Chinese economy” the impact of a slump on the economy would be compounded by the lack of alternative growth engine and the weak external demand for the foreseeable future. 
“There is a close link between property sales and fixed asset investment, with a weak property market leading to slower property investment. 
“A slump in the property sector will have significant repercussions for related industrial sectors… Key linkages include the upstream industries of steel, cement and building materials; downstream industries of automobile and home appliance; and the intermediate sectors of banking and advertising,” say Li-Gang Liu and Zhou Hao.
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China’s property slump bad news for resources boom: ANZ

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November mortgage figures released by mortgage broker AFG show a resurgence in loans taken out by property investors as part of an overall jump in processed mortgage applications following the RBA cutting interest rates on November 2. 
The figures, which come out about six weeks ahead of official ABS housing finance data and are strongly indicative of where the market is heading, show an 18.4% increase in mortgages processed by AFG brokers. 
Property investors accounting for almost two out of every five mortgages sold in November (38.4%) – an all-time record for the AFG Mortgage Index. 
Investors were especially active in New South Wales (44.6%) and Victoria (39.8%), but also strong in Queensland (37.7%), Western Australia (32.1%) and South Australia (30.0%).
Refinancing activity remained virtually unchanged, accounting for 37.8% of all loans written. 
First-home buyers dropping to 15.8% of the market compared to 16.4% recorded in October, but are still well above the 12.2% recorded in November 2010. 
AFG, whose mortgage brokers account for about one in 10 mortgages written in Australia, processed $2.9 billion of mortgages in November, its highest such figure since March 2009. 
Mortgage growth was particularly strong in Victoria, where mortgages processed leaped 26.7% and Queensland (20.8%). Elsewhere, growth was recorded in NSW (16.4%), WA (15.8%) and SA (8.7%). 
Mark Hewitt, general manager of sales and operations at AFG, says that while November is seasonally a strong month for mortgages, “the rate cut has certainly stimulated demand”. 
“We’re experiencing the paradox that weaker global economic conditions and lower rates, is good news for Australian property buyers – at least for now. It’s significant that investors and first home buyers are leading the action,” he says. 
“Many had been fearful that we were locked into a scenario of constant rate hikes. The November rate cut proved to be a real a turning point and the outlook is very different now.” 
The major banks accounted for 80.4% of all mortgages written by AFG brokers, up from 78.9% written in October.
 
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AFG mortgage approvals at 33-month high as investors return to the market 

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The restructure of the Centro Properties Group into a new trading entity has cleared its final hurdle, with former auditor PricewaterhouseCoopers (PwC) deciding not to appeal a NSW Supreme Court decision in favour of the plan.
The accounting group had opposed the restructure – vital to Centro being able to meet its debt obligation and avoid liquidation – on the basis that it favoured equity holders over contingent creditors, of which it is one.
However, the court ruled that PwC would “emphatically be better off if the schemes proceeded than if they did not, and that there is no unfairness to PwC inherent in the schemes of arrangement”.
PwC’s decision not to appeal follows <a href="https://www.propertyobserver.com.au/commercial/centro-finds-support-for-restructure-proposal/2011112252478">Centro shareholders, bond holders, hybrid lenders and senior creditors</a> voting in favour of the amalgamating the various Centro businesses into a $3.4 billion listed trust to be called Centro Retail Australia on November 22.
It brings to an end a four year debt crisis that began at the height of the GFC in December 2007 when Centro was forced to negotiate extensions to debt obligations of around $1.3 billion.
The new entity is expected to begin trading on December 14.
As part of the restructure, $2.7 billion owed to Centro’s senior lenders that was due to be paid by December 15 will be cancelled in exchange for substantially all of Centro’s Australian assets and interests being transferred to these lenders.
Centro shareholders and bond holders will be paid 5.03¢ per share, equating to $49 million and $21 million respectively in exchange for redemption of their shares and convertible bonds.
Hybrid lenders will be paid $20 million in return for the cancellation of their debt.
An additional $10 million has been set aside for potential contingent creditors, with any surplus not used is to be returned to senior lenders.
Payments will be made in approximately three weeks.
Centro chairman Paul Cooper described the approved restructure as a “major achievement for Centro and its stakeholders”
“We are extremely pleased that all approvals have now been received for the proposal, which will result in Centro security holders receiving 5.03¢ per Centro security.”
Centro had warned that failure to secure the restructure would have resulted in shareholders receiving nothing.
 
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Centro restructure gets final nod of approval

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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