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Australia’s four biggest banks have played down a decision by Standard &amp; Poor’s to downgrade their long term credit rating as part of a global re-rating of the world’s 37 largest banks. 
AA- is the lower limit of Standard &amp; Poor’s “high-grade” category, indicating a “very strong capacity to meet financial commitments”. 
The Big Four banks join 15 banks in Europe and the United States that have been downgraded under the revised criteria.
A ratings downgrade could potentially increase the cost of borrowing money, making it more likely that banks won’t pass on future interest rate cuts to consumers.
The new criteria place heightened emphasis on economic risk and industry risk in setting the starting point or “anchor” in rating a financial institution with the aim of increasing transparency.  The anchor is then adjusted for bank-specific factors, such as capitalisation, management and risk position. Lastly the ratings are adjusted for potential government support and corporate group support.
Putting the downgrades into perspective, Australia’s Big Four banks are still rated more highly than top-rated bank in the US – Wells Fargo, which has an A+ rating.
Westpac acknowledged that its rating had been lowered by one notch, but said it “remains one of a small number of banks worldwide within the Rating Agency’s AA categories”.
Commenting on ANZ’s rating downgrade, chief financial officer Peter Marriott also highlighted that it “remains one of a select group of banks globally that have a AA category rating under S&amp;P’s new bank ratings criteria”.
“We continue to be regarded as amongst the strongest banks globally and with a return to the rating we held until the beginning of 2007, we are one of the few banks in the world to have come out of the global financial crisis with the same rating as we went into it with,” he says.
Commonwealth Bank group treasurer Lyn Cobley says the bank does not expect the downgrade to have any material impact on its funding plans or expected pricing of new debt issuance.
NAB chief executive Cameron Clyne says NAB is a “highly rated bank by global standards, is well capitalised, has strong funding and liquidity positions, and remains well-placed to continue to support customers”.
 
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lschlesinger-FZcF9M3vE6

Major banks play down S&P ratings downgrade

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A decision by the Reserve Bank to cut interest rates next week or at a future date is likely to have the strongest impact on NSW home buyers, according to a consumer survey by Mortgage Choice. 
A third of NSW consumers say they are would be “more likely” to buy a house if there were further drops in the interest rate, significantly higher than the national average of 26%. 
An interest rate cut would spur on 29% of Victorian to consider dipping their toes into the property market, with Western Australians’ sensitivity also tracking above the national average at 27% of consumers. 
Queenslanders and South Australians are the least sensitive to interest rate cuts, with just 21% of them saying they would be more likely to buy if the cash rate fell. 
The survey of over 1,000 consumers was carried out after the 25-basis-point interest rate cut on November 2. 
Alongside their pent-up appetite to buy property should interest rates fall, nearly two-thirds of NSW consumers (64%) believe property is a safer investment than shares, registering the biggest improvement in sentiment towards property over the last 12 month (up 7%) across the five states surveyed.
“With ongoing financial volatility here and overseas, New South Wales respondents are increasingly viewing property as a safer haven than shares. It is interesting to see the impact rising rental costs are having on people’s decision to take the leap into the property market,” says Mortgage Choice acting head of consumer of corporate affairs Belinda Williamson. 
A similar proportion of Victorians believe property is a better investment than shares (64%, up from 3% in 2010) just ahead of WA consumers (63%, down 1%). 
Sentiment towards property over shares increased by 5% among Queenslanders to 61% while South Australia registered a 1% fall with 61% of the state’s consumers preferring property over shares. 
Nationally, property has become more appealing in the ongoing financial turmoil with 63% of the more than 1,000 consumers surveyed by Mortgage Choice believing it to be a safer investment than shares, compared to 59% in 20101. 
NSW consumers are also the most optimistic about the economy, although confidence levels have dropped to 59% saying they were"fairly confident" or "very confident" about the economy, compared with 76% who said the same in 2010. 
Nationally, 56% of consumers were "fairly confident" or "very confident" about the economy versus 75% in 2010 with South Australians the most gloomy, with just over half of respondents (51%) feeling confident about the outlook. 
Other key findings from the national survey:
 
<ul>
<li>
Rental squeeze: 86% feel the rental squeeze is having an effect on property prices in their state. </li>
</ul>
<ul>
<li>
Property prices: 30% believe Australian property prices will increase over the next 12 months, 28% believe they will decrease, 26% believe prices will remain stable and 16% don’t know. gen Ys were the most adamant about property price rises, followed by gen Xers and baby boomers.</li>
</ul>
 
<ul>
<li>
The property purchase process: When asked how well informed respondents were about the property purchase process, 17% were "well informed", 34% "know the essentials", 35% have "some idea" and 14% have "no idea".  
</li>
</ul>
 
<ul>
<li>
The switch to fixed: 79% of mortgage holders will consider switching to a fixed term loan only when lenders’ fixed rates fall below 5.75%. </li>
</ul>
<ul>
<li>
Mortgage buffer: 67% of mortgage holders have only two months’ wages or less as a buffer in their mortgage. </li>
</ul>
<ul>
<li>
Using a mortgage broker: 64% of all respondents will consider using a mortgage broker in the future</li>
</ul>
 
 
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A third of NSW consumers more likely to buy housing if rates fall further: Mortgage Choice

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Meriton boss Harry Triguboff has lamented the current state of the Surfers Paradise market, calling on the government to base more of its institutions near Main Beach to help revive the area.
Speaking at a property lunch in Sydney this week, he said Surfers remained a very attractive place, but could not survive just as a residential location.
“It needs to be a place for work,” Triguboff says. “It cannot just be a place for building apartments; it cannot survive on just one industry.”
“Once we overcome that, it will shoot up like crazy. It’s terrific.”
In his attempts to help revive the ailing Gold Coat market, Triguboff says he has been trying to convince Chinese buyers that Surfers Paradise is part of Brisbane.
However, he says he has not been helped in his efforts by the state local governments, which don’t respect what he is doing.
“Just recently I had a development approved on the Gold Coast. They only approved it because they needed the money, not because they wanted to. That is unfortunate because we should really learn to work together,” he says.
For the Gold Coast and Surfers Paradise to succeed, they will need to emulate the success of somewhere like Parramatta, a satellite city to Sydney, Triguboff says.
Triguboff says Parramatta is succeeding because it has been able to attract some big-government tenants such as the Water Board and Commonwealth Bank.
Surfers Paradise, he says, needs the big government organisations moving in to help the market develop.
Overall though, Chinese buyers remain the key to Meriton’s success, not just on the Gold Coast.
Triguboff says that most of his buyers are now Chinese, so much so that Meriton has including lots of photos of Asian people in its advertising and promotional material as well as employing more Asians in marketing new projects.
“We went them to feel at home,” he says.
Asked by Ross Greenwood, host of Australia Israel Chamber of Commerce (AICC) discussion,  if he has had to make any changes to the types of apartments he is building to satisfy Chinese buyers, Triguboff says this has not been necessary.
“They are happy with the way Meriton builds its apartments. That is the way they think it is supposed to be,” he says.
According to Triguboff the high costs associated with purchasing property and high interest rates are making it very hard for Australian to buy into Meriton developments.
“That is why we have to depend so much on the Chinese, but I hope it will change. I hope costs will be brought down and that interest rates will come down because demand is at record levels.”
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Gold Coast must turn to business, not just tourism, to survive: Harry Triguboff

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There have been solid gains in the share prices of Australia’s Big Four banks following co-ordinated action by the US Federal Reserve, European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland to provide liquidity support to the global financial system and avert a potentially devastating credit freeze.
Among the top gainers this morning has been ANZ, with its share price trading more than 3% up from yesterday at $20.50.
At last check, Commonwealth Bank shares were up 1.4% to $48.84, Westpac shares had gained 0.6% to $21.18 and NAB shares are up 0.75% to $24.16.
Overall, shares have also rallied in Australia with the benchmark S&amp;P 200 up 107 points to 4226.8 with the All Ordinaries index up 101 points to 4286 in morning trading.
A credit freeze would have <a href="https://www.propertyobserver.com.au/economy/european-debt-crisis-could-hurt-australians-hip-pockets/2011112952592" target="_blank">substantially raised the cost of banks and other lenders raising wholesale funding</a> offshore – a crucial part of the mix of money lent out to borrowers –and increased the likelihood that future interest rate cuts would not be passed on in full.
“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system,” said the US Federal Reserve in a statement overnight.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”
From December 5, these central banks will lower the pricing on the existing temporary US dollar liquidity swap arrangements by 50 basis points making it cheaper for indebted European banks to buy US dollars.
It is expected to take some pressure off the interbank lending market – where banks lend money to each other.
The reduced cost of borrowing will run until February 1 2013.
"This decreases the cost of funding in US dollars or other currencies so it's small, but it's a boost to banks' profitability and gives them a better chance to shore up their capital ratios,” Christian Schulz at Berenberg Bank told the BBC.
Schulz says the actions by the central banks won’t resolve the European sovereign debt crisis, it will “ease the panic around European banks significantly and help preventing a devastating credit crunch”.
Besides offering cheaper US dollars, as a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant.
“At present, there is no need to offer liquidity in non-domestic currencies other than the US dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise. These swap lines are authorized through February 1, 2013,” the US Federal Reserve said.
This statement and similar ones from the other Central Banks had an immediate impact on investor sentiment with Wall Street's Dow Jones index rising 4.2%, its biggest gain since March 2009.
In Europe Germany's Dax index closed 5% higher, France's Cac 40 rose 4.2% and the UK's FTSE 100 rose 3%.
 
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Australian bank shares up as global credit freeze averted

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Demand for mortgages from property investors has tracked significantly below that of owner-occupiers over the past three months, Westpac has highlighted following the release of October credit statistics by the Reserve Bank. 
Westpac senior economist Andrew Hanlon says the current three-month pace of investor credit growth is just 4.1% annualised compared with 6.1% for owner-occupiers. 
“Weakness of the investor market is notable,” he says.
<img src="/images/stories/creditgrowth.gif">
Source: Westpac
He also expressed surprise that housing credit advanced by just 0.4% in October, down from growth of 0.5% in September, with overall credit growth for October at just 0.2%. 
“New lending, housing finance, has improved a little of late… The RBA cut rates in November. This points to some improvement ahead,” he says. 
“That said, housing finance remains at a relatively low level and housing credit growth is weak by historical standards.” 
Over the past 12 months housing credit growth has moderated to 5.7% currently from 7.4% a year ago, while personal credit has weakened (-1.4% from +2.2%) and business has credit stabilised (+0.7% following -3.0%). 
“Recall that for June 2011, the rise in housing credit of 0.35% was the weakest (nominal) monthly rise in the history of the series (back to 1976), with the exception of just July 1984. This highlights the headwinds facing the sector.” 
CBA economist James McIntyre noted that while total housing credit remains 5.7% higher than a year ago, this growth is the weakest in the 34 years of available data. 
“Overall growth in household credit (housing plus other personal) is growing at a 4.8% annual pace, well below growth in household incomes,” he says. 
Hanlon says further rate cuts (Westpac is forecasting another 75 basis points to be shaved off the cash rate over the next 12 months) will provide some relief to the housing market. 
“That points to a firming of general economic conditions and credit growth from around mid-2012,” he says.
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Owner-occupier mortgage demand outpaces demand from investors: Westpac

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As we look back on 2011, Property Observer is republishing some of our most noteworthy stories of the year.
 
More than 800 investors put almost $27 million into the US Masters Residential Property Fund, which invests in houses in the New York Metropolitan area, at its most recent capital raising this month.
<a href="https://www.propertyobserver.com.au/overseas/dixon-advisory-attracts-815-more-aussies-to-take-a-punt-on-us-housing-investment/2011112952603" target="_blank">In October the fund added 22 rental properties to its portfolio</a> at a cost of just under $4.66 million, taking its total holdings to 55 properties worth $11.18 million.
The new investments, all of which are sub-divided houses in Jersey City – just across from Manhattan – range in price from $120,000 to $354,000, with estimated yields ranging from 7.4% to 12%
With two more rounds of capital raisings still to come in mid-January (and opportunities for investors to get involved), here’s a rundown of the 10 highest-yielding properties in Jersey City added to the portfolio in October:
<img src="/images/stories/vreeland6.jpg">
12%
The estimated annual net yield on the two-family detached property at 6 Vreeland Terrace (pictured above) bought by the fund for $140,000 with both three-bedroom apartments returning monthly rent of $1,200 each
<img src="/images/stories/myrtle213.jpg">
11.9% 
The estimated annual net yield on the two-family detached property at 213 Myrtle Avenue (pictured above) bought by the fund for $120,000, with the three-bedroom apartments returning monthly rent of $1,050 and $900
<img src="/images/stories/orient.jpg">
11.6% 
The estimated annual net yield on the two-family detached property at 130 Orient Avenue bought by the fund for $155,000, with the three-bedroom apartments returning monthly rents of $1,150 and $1,200
<img src="/images/stories/vannostrand.jpg">
Continued on next page
 
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11.3%
The estimated annual net yield on the two-family detached property at 31 Van Nostrand Avenue (pictured above) bought by the fund for $175,000, with the two apartments returning monthly rents of $1,300 and $1,200
<img src="/images/stories/dwight.jpg">
10.1%
The estimated annual net yield on the two-family detached property at 150 Myrtle Avenue (pictured above) bought by the fund for $180,000, with the two apartments returning monthly rents of $750 and $2,000
<img src="/images/stories/bidwell.jpg">
10%
The estimated annual net yield on the three-family detached property at 9 Bidwell Avenue (pictured above) bought by the fund for $200,000, with the three apartments returning monthly rents of $690, $940 and $1,040
<img src="/images/stories/dwight60.jpg">
10%
The estimated annual net yield on the two-family detached property at 60 Dwight Street (pictured above) bought by the fund for $241,000, with the two apartments returning monthly rents of $750 and $2,000
<img src="/images/stories/forrest.jpg">
The estimated annual net yield on the four-family detached property at 366 Forrest Street (pictured above) bought by the fund for $222,000, with the two apartments returning monthly rents of $850, $900, $700 and $900
<img src="/images/stories/clintonave.jpg">
The estimated annual net yield on the four-family detached property at 167 Clinton Avenue (pictured above) bought by the fund for $241,000, with the two apartments returning monthly rents of $750 and $2,000
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Dixon’s US property purchases: 10 highest yields

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Rents are soaring in WA mining towns in the Pilbara, with modest and often unappealing houses costing as much to lease as houses in the prestigious suburbs of Melbourne and Sydney.
John Briggs from Port Hedland Real Estate tells Property Observer the regional rental market is “very, very strong” though sales prices have come off historic highs due to the current global turmoil.
Briggs says yields are now up around the 11.5% mark, having previously been around 10%.
At the same time investors have been urged to tread cautiously when it comes to investing in mining towns, with hotspotting.com.au’s Terry Ryder warning that while they have great allure for property investors because they often provide high rental returns and rapid capital growth, <a href="https://www.propertyobserver.com.au/queensland/mining-towns-not-rivers-of-gold-terry-ryder/2011081051115" target="_blank">mining towns can be “perilous locations for investors”</a> as they sit at the “extreme far end of the risk spectrum”.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/mining-boom-drives-up-nsw-hunter-valley-rents/2011113052623">The NSW mining boom has also driven up rents in the Illawarra and Hunter Valley regions.</a>
For those investors brave enough to dip their toes in, here are the weekly rental numbers in WA’s most expensive mining towns
$2,000
This is the median asking rent for a house in <a target="_blank" href="/news">Port Hedland</a>, the biggest city in the Pilbara region. Demand for housing in Port Hedland is likely to increase in the coming months following WA's environmental watchdog giving its backing to an expansion of the port’s capacity by an additional 50 million tonnes. The median sales price is just over $1 million, translating into an indicative gross rental yield of 9.5%. Realestate.com.au lists 37 properties available for rent currently in Port Hedland with weekly rents ranging from $1,000 per week to $3,200 per week.
$1,800 
This is the median asking rent for a house in <a target="_blank" href="/news">Baynton</a>, a suburb of Karratha. Baynton West is a major Landcorp residential development site, with 523 lots to be built and 75% to be occupied by early 2012. Lots range in price from $165,000 to $303,500 and sizes from 381 square metres to 987 square metres. According to RP Data the median sales price in Baynton is $950,000 with an indicative gross rental yield of 9.9%.
$1,775
This is the median asking rent for a house in <a target="_blank" href="/news">Nickol</a>, a suburb of Karratha just north of Baynton. According to RP Data the median sales price in Nickol is $916,500, with an indicative gross rental yield of 10%.
 
$1,650
This is the median asking rent for a house in <a target="_blank" href="/news">Pegs Creek</a>, a suburb in east Karratha. According to RP Data the median sales price in Pegs Creek is $705,000, with an indicative gross rental yield of 12.2%.
 
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Dampier</a>, a tiny town north west of Karratha, which is now a major industrial port. It services petrochemical, salt, iron ore and natural gas export industries with mining giant Rio Tinto exporting large volumes of iron ore through the port. According to RP Data the median sales price in Dampier is $855,000 with an indicative gross rental yield of 9.1%. Recent sales include a four-bedroom house on Butler Way for $1.28 million and a three-bedroom house on Anderson Street, which sold for $1.69 million. Realestate.com.au lists just five properties available for rent in Dampier, with weekly rents ranging from $650 to $1,600.
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Bulgarra</a>, a suburb of Karratha, which is now a major industrial port. According to RP Data the median sales price in Bulgarra is $750,000 with an indicative gross rental yield of 10.4%. Realestate.com.au lists just 10 properties for sale in Bulgarra, with prices ranging from $420,000 for a one-bedroom house to $839,000 for a three-bedroom house with a swimming pool.
$1,400
This is the weekly median asking rent for a house in <a target="_blank" href="/news">South Hedland</a>, a suburb of Port Hedland with a population of about 8,000 people. According to RP Data the median sales price in South Hedland is $720,000 with an indicative gross rental yield of 10.1%. On realestate.com.au rents in South Hedland range from $1,150 per week for a three-bedroom house to $2,500 for a new four-bedroom house. Less than 25 properties are available to rent currently.
$400
The median rent for a house in the<a target="_blank" href="/news"> </a><a target="_blank" href="/news">Perth</a> metro region, according to the Real Estate Institute of WA.
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Pilbara mining rents: the seven most expensive WA boom towns

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A growing demand for mining accommodation has resulted in a sharp escalation in the median rental price in the Hunter and Illawarra regions of NSW, with rents for units and houses up around 9% over the past year, according to analysis of data from the NSW Department of Housing by PRDnationwide.
Demand for rental accommodation was particurlarly strong in Maitland in the Hunter Valley, which registered the highest increase in rental bonds across NSW with growth of 29.7% in the 12 months to September.
Maitland was followed by Kiama on the Illawarra South Coast, with 23.7% increase in rental bonds over the 12-month period.
“Rental growth around the Hunter is generally related to the intensification of mining activities,” says PRDNationwide. 
<img src="/images/stories/prdnov30.gif">
Source: PRDnationwide
The region is attracting new arrivals with specialist skills in engineering, resources and mining with Hunter mining giant Coal and Allied operating Hunter Valley Operations, Mount Thorley Warkworth and Bengala mines in the upper Hunter Valley. 
In total there are about $21 billion worth of mining projects underway in the Hunter Valley.
<img src="/images/stories/prdnov301.gif">
Source: PRDnationwide
In July engineering group Downer EDI said it was looking to employ 400 people to help the Ravensworth North Coal Project in Newcastle after winning a $400 million contract with Xstrata Coal to develop the Ravensworth North Coal Project. 
There was also strong rental growth in other NSW regions close to mining activities. 
The median rental price for three-bedroom houses in the regional centres of Newcastle and Wollongong increased by more than 8% while rents for two-bedroom units increased by close to 10% in Newcastle, Port Stephens and Shellharbour. 
Overall, the vacancy rate for the Hunter and Illawarra regions averaged just 1.7% compared with 1.3% for Sydney metropolitan region.
Commenting on the increase in rents across NSW, PRDnationwide says that in an environment of softer house prices, “an increase in rent is welcomed by landlords and normally indicates a strong economy and large changes in population”. 
“However, around NSW and indeed Australia local residents who are not part of the mining industry are often being priced out of the market by companies that pay above-market rents. This in turn leads to negative social consequences and increases the pressure on government housing.”
Rents in WA mining towns are also booming.
 
 
 
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Mining boom drives up NSW Hunter Valley rents

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Despite the spate of headlines forecasting further property gloom, Mortgage Choice CEO Michael Russell says a record level of mortgage pre-approvals indicates that there is “patchy pent-up demand”, with a rate cut likely to spur many sitting on the sidelines back into the market.
Russell says mortgage pre-approvals have risen over recent months, particularly among first-home buyers.
“There are lots of people on the sidelines who are still waiting for a lower entry price – for the market to bottom out – and another cash rate reduction,” he says.
“Another cash rate cut either next week or in February will make property irresistible for investors and stimulate the market.”
Aside from the increase in pent-up demand, Russell says industry-wide home loan approvals have picked up in five out of the last six months.
Having bottomed out in March at around $19 billion from a high of around $24 billion at the end of 2009 (helped out by the first-home owner boost), Russell saysindustry-wide mortgage approvals have now climbed back up to around $21 billion a month.
“My feeling in terms of momentum for the market is one of optimism and confidence,” he says.
And despite the media attention on what is happening globally and in particurlar in Europe, Russell says consumers are not that concerned about macro issues.
“Speculators – those that buy off the plan and look to flip the property at settlement for profit – have lost their appetites for property.
“But investing in property is not about making a short-term investment, it’s about investing for seven to 10 years.”
 
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Rate cut will encourage first-home buyers and investors: Mortgage Choice CEO Michael Russell

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Brisbane house prices registered the biggest fall in dwelling prices nationally over October with values down 2.9% for the month and 9.3% compared with a year ago, according to the RP Data-Rismark October Hedonic Home Value Index Results.
Canberra was the only capital city to register an increase in dwelling values over the month, up 1.6%.
Brisbane units have proved far more resilient, with values up 1.1% for October to be down only 1.4% over the past 12 months.
The average dwelling price in Brisbane declined by 1.6% in October to be down 8% year-on-year with the median price declining to $402,000
The median price for a Brisbane house now stands at $425,000 and at $360,000 for a unit.
The declining in Brisbane dwelling values in October was triple the overall capital city home values decline of 0.5% in the month before the RBA’s decision to cut interest rates.
For the year to date, dwelling prices are down 4% for capital cities.
Regional dwelling prices declined by 0.8% to be down 3.4% over the past 12 months.
<img src="/images/stories/rpnov30.gif">
Sydney and Canberra were the most resilient capital city markets, with dwelling values unchanged in Sydney over October to be down just 1.4% off their peaks while Canberra dwelling prices increased by 1.6% over the month to be 1.1% off peak prices.
Dwelling prices fell 0.6% in Melbourne over October to be down 5.4% year-on-year and 5.8% off the peak.
RP Data director of research Tim Lawless says the year-to-date results highlight the divergent outcomes more clearly. 
“Over the 10 months to October, Canberra and Sydney dwelling values have not moved a great deal: up 0.9% and down 1.4% respectively.”
“In contrast, Brisbane home values have been hit hard and are now off 7.5% while Melbourne dwellings have corrected 5.8% after very strong 25-30% capital growth over 2009-10.” 
“The combination of lower interest rates, cheaper homes, and rising incomes is generating a welcome boost to housing affordability, particularly in those markets where value falls have been more significant,” he says.
For property investors, the 2.8% decline in house prices over 2011 has been offset by solid growth in rents.
 
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Brisbane house prices fall 10% over past year as Canberra only mainland city with rising market: RP Data

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

Joel Robinson

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

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

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

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

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

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

Lowe Living launches Jardin House in Camberwell

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

Larry Schlesinger

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