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

Joel Robinson

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

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

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

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

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

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

Lowe Living launches Jardin House in Camberwell

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

The Walden pairs house-scale living with North Sydney connectivity

Anz Bank

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The ANZ have followed suit in the so-called battle of the big four banks.
They've only cut their standard variable rates by 0.14 per cent. 
The move follows <a href="/expert-insights/finance/nab-and-cba-fail-to-pass-on-full-rate-cut">CBA cutting 0.14 per cent and NAB 0.15 per cent</a>. 
Westpac have just <a href="/expert-insights/finance/westpac-the-final-big-four-bank-to-fail-to-pass-on-full-rate-cut">cut their rates by 0.15 per cent</a>.
“This was a considered decision balancing the needs of our customers in a low rate environment as well as the performance of our business and our role in stimulating the economy," ANZ Group executive Australia retail &amp; commercial, Mark Hand said.
<ul>
<li>For Standard Variable Rate Owner Occupiers paying Principal &amp; Interest the Index Rate will reduce by 0.14%pa to 4.79%pa</li>
<li>For Standard Variable Rate Investors paying Interest Only the Index Rate will reduce by 0.25%pa to 5.74%pa</li>
</ul>
Changes to variable rates are effective 11 October 2019.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/2/ANZ%20Rate%20Cut.jpg" alt="">
“We were able to match the full rate reduction in July and the majority in June, however the dynamics of record low interest rates has resulted in a reduction in variable home lending rates of between 0.14%pa and 0.25%pa this time around.
“While we recognise many customers will use this as an opportunity to pay down their existing home loans faster, we hope this provides the economic stimulus the Reserve Bank is wanting to generate. 
“We have also announced a new fixed rate of 2.98%pa for home owners paying principal and interest with either two or three year terms available from tomorrow. This is the lowest residential rate on record for ANZ,” Mr Hand said.
The new standard variable rate for owner occupiers paying principal and interest will come in to effect on October 11, bringing it to 4.79 per cent. 
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jrobinson-rf4aSBido9

ANZ cut interest rates by just 0.14%

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The ANZ Bank has revised its forecast and now sees the bottoming of the housing market "in the coming months" following the policy turnaround. 
Economists Felicity Emmett and Adelaide Timbrell have forecasted prices will rise modestly through to the end of 2019.
They expect a three percent growth in 2020.
"After a period of significant weakness, house prices appear to be stabilising," their latest Australian Housing Update read.
"Sydney prices have fallen 15%, while Melbourne’s are down 11%," they advised.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/16/Monthly%20housing%20prices%20ANZ.jpg" alt="">
"Brisbane prices have fallen only modestly, while Adelaide prices have been broadly stable.
"Perth remains weak, but Hobart has been a standout.
They cite the election result, back the back RBA cash rate cuts and APRA loosening their lending serviceability have all contributed to the quickening of the end of the downturn.
"All of these factors have helped to shift sentiment from one of pervasive negativity to cautious optimism," Emmett and Timbrell said.
They warned however against a property boom that we saw from 2012 to 2017.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/16/Capital%20city%20prices%20v%20auction%20results%20ANZ.jpg" alt="">
"While the outlook definitely looks more positive, we do not expect a V-shaped recovery for prices," the report noted.
"Our view for some time has been that the tightening in credit has been the major driver of weakness, and while there has been some easing at the margin, changes to the use of Household Expenditure Measure (HEM) and the introduction of comprehensive credit reporting will offset some of the impact.
"Moreover, there is still a substantial amount of supply coming on stream, particularly in Sydney where the rental vacancy rate is at a 15-year high.
"This all suggests that the recovery is likely to be a fairly modest one.
 
 
 
 
 
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ANZ sees bottoming of the housing market in coming months

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An ANZ retail banking facility in Mona Vale failed to sell at Burgess Rawson auction this morning.
It was passed in at $5.7 million
Situated at 10-12 Bungan Street, the building is leased to ANZ for 10 years until 2025 with options to 2040.
The building recently underwent building upgrades as well as an ANZ fitout to bring it up to corporate standards.
Net income on the property is currently $260,549 with 3.5% annual rent increases.
The tenant pays all outgoings.
The listing notes there is proposed zoning uplift allowing future development potential (STCA).
<img src="https://www.urban.com.au/images/2018/10/15/ANZ%202.JPG" alt="">
Set on a 294 square metre block, the two storey building last sold for $2.02 million in 2000.
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j.ballantyne1990-6AQqhLzZaK

ANZ premises in Mona Vale fails to sell

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An ANZ retail banking facility in Mona Vale is set for October 23 auction.
Situated at 10-12 Bungan Street, the building is leased to ANZ for 10 years until 2025 with options to 2040.
The building recently underwent building upgrades as well as an ANZ fitout to bring it up to corporate standards.
Net income on the property is currently $260,549 with 3.5% annual rent increases.
The tenant pays all outgoings.
The listing notes there is proposed zoning uplift allowing future development potential (STCA).
<img src="https://www.urban.com.au/images/2018/10/15/ANZ%202.JPG" alt="">
Set on a 294 square metre block, the two storey building last sold for $2.02 million in 2000.
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ANZ premises in Mona Vale set for auction

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Jo Masters, the senior economist at ANZ, has gone against no movement consensus with her big call that there will be two interest rate rises this year. 
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<div class="m_8380867177741228828gmail-cq-article-content-paras m_8380867177741228828gmail-section">
She forecasts the RBA will take the cash rate from 1.5 per cent to 2 per cent during 2018.
Masters, the Chatswood based tennis playing mother of two, tips the first central bank move is likely to be in May, with one more in the second half of the year. She sees none happening in 2019.
She concedes it does depend on the February wage growth data release.
It will be the first rate hike in eight years, coming at a time when household debt to disposable income is at record highs.
Master's wonders just how households will respond noting it will be critical for retail consumption and ofcourse the housing market.
Masters operates by the view that its always better to have a view and be wrong, than have no view at all.
</div>
<div class="m_8380867177741228828gmail-cq-article-content-paras m_8380867177741228828gmail-section">
 
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</div>
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ANZ's Jo Masters makes non-consensus 2018 cash rate call

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ANZ economists have suggested the slowdown in Canada’s extended property market boom could be a roadmap for future Australian housing market direction.
“Canada is arguably ahead of Australia in its economic and policy cycles, so watching developments there can be useful for those monitoring the Australian economy,” according to ANZ economists David Wilson and Jo Masters.
They noted house price growth in Canada has halved in the last year.
“Canada is nine months ahead in terms of monetary tightening,” Ms Masters told Fairfax's Domain, pointing to two recent interest rate hikes in Canada.
ANZ’s prediction since September has been that the Reserve Bank of Australia will hike twice in 2018. 
ANZ Bank predicts the Reserve Bank will raise official interest rates by 0.5 percentage points next year as the economy gradually improves, with the first hike tipped for May by ANZ economists David Plank and Felicity Emmett.
Canadian interest rates have come off a lower base than Australia, with hikes in July and September only taking the official cash rate to 1 per cent.
They forecast the Australian cash rate will be lifted by 0.25 percentage points in May, followed by another hike in the second half of the year, and then it will be be left unchanged over 2019 so as not to crunch spending of highly-indebted households.
Previously, ANZ was not forecasting any rate hikes in 2018.
“Canada recently released additional macro-prudential measures for the property sector," Ms Masters noted.
"These are likely to have a material impact on mortgage originations, housing affordability and property price growth in 2018.
"The hottest property markets in Canada – Vancouver and Toronto – are likely to be hit the hardest by these measures," Ms Masters said.
Already the data has signalled the downturn has set in.
Toronto’s monthly home sales - in Canada’s biggest city - have fallen by as much as 40 percent in volume, the largest annual decline since 2009. There have been four months of price declines in Toronto.
The price of the average home in Toronto fell 4.6 percent in July, the biggest monthly decline since at least 2000. From August to September, the city experienced a 2.7 percent drop. 
The monthly declines have not been enough to plunge annual gains into decline.
With Australian household debt sitting at record highs, the RBA faces uncertainty about how consumer spending will respond to slowing house-price growth, the ANZ said.
It recently advised about 38% of its home loan customers were repaying principal faster than required. 
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ANZ looks to Canada housing market as potential Australian roadmap

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ANZ said it has been increasing its owner-occupied home loans business much faster than the market while posting a cash profit increase of 5.3 percent to $1.79 billion for its third quarter ended June 30.  
In its third quarterly trading update, the bank said its lending growth in the owner occupied segment was 30 percent above the system average.
“We’ve said for some time as a strategy we want to be the best bank for people that want to buy and own a home and so we’ve been growing our business in owner occupied home loans much faster than the market,” ANZ CEO Shayne Elliott told the bank’s in-house news publication BlueNotes.
<a href="https://www.propertyobserver.com.au/images/2017/08/18/ANZmain.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/18/ANZmain.png" alt="">
He said the bank was re-weighting its portfolio towards that segment and “we’re really comfortable with that”. 
“The way we’re doing that is just really is focus and great product and distribution through our branch network,” added Elliot. 
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<img src="https://www.urban.com.au/images/2017/08/18/ANZSummary.png" alt="">
ANZ said it was also on course to meeting macro prudential requirements for mortgage growth.
Investment lending was at 80% of the combined industry average.
Its research arm recently said that the slowdown in investor borrowing was continuing, and quarterly annualised growth sits at 6%.
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ANZ's owner-occupier lending growing faster than rivals

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ANZ Banking Group has issued a warning about shares being issued by developers to property investors that side-step planning laws and can’t be used as security for loans.
Calling these securities “unacceptable" the bank has issued a confidential memo to its banking and mortgage broker networks warning about the deals that are being detected around Sydney's inner suburbs, the Australian Financial Review reported.
The bank says the security structure, which is being used to sell multimillion share offer documents, could trap unwary buyers in hot property markets.
Buyers of the securities will not have title to a single property, will be unable to use them for a loan with most lenders and could have difficulty finding a buyer, the AFR said citing banking specialists.
The deals were likely detected when investors tried to use the shares as security for loans.
Copies of the contracts, which price individual shares at more than $1.6 million, appear to have been documented by lawyers and accountants. They have been issued and signed this year.
Lenders fear the security would place them behind other creditors in the event of a foreclosure, which makes the risk “unacceptable”.
"It has come to our attention that customers are offering unsuitable company share title securities for home loan applications," the ANZ memo told its broker network states.
An ANZ spokesman confirmed the arrangements but said it had so far only identified a handful of contracts around Waverley and Randwick, the AFR reported.
The issue stems from the fact that local councils will not issue strata titles for developing multiple residences on a property.
"Some councils, particularly in NSW, are not allowing newly established properties to be subdivided, so the customers/vendors are sometimes setting up a private company and issuing shares,” the memo continued.
"These tend to be duplex type arrangements, where a certain number of shares will equal one unit and a certain number equals the other unit."
A duplex property is effectively two conjoined properties occupying one block or plot of land and sharing at least one common wall. Both dwellings in a duplex are built at the same time.
If strata titled, each dwelling may be sold and owned separately. But if not strata-titled both dwellings within the duplex can only be sold together.
Under the arrangement, the ownership of the land stays in the name of the vendor. The vendor then sets up a company that issues shares for sale.
It effectively means the purchaser does not have exclusive use of the proposed unit. For example, a purchaser of a 25 per cent share in four apartments would own 25 per cent of all units, not a specific unit.
"These types of security properties are not deemed "company title and are unacceptable," the bank states.
"Any customers entering these arrangements should be informed that ANZ does not support this type of lending."
A spokesman for National Australia Bank was cited by the AFR as saying that it also does not accept company share titles or stratum titles as acceptable residential security for home loans.
Other lenders declined to comment on whether property investors are using similar sales methods, but mortgage brokers say they would be surprised if other lenders had not been approached.
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ANZ warns against developers issuing 'unacceptable' securities to property buyers

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An established ANZ bank in Narrabri, at the location for 35 years, is now up for auction.
The 668 square metre property located at <a href="https://www.burgessrawson.com.au/2P1282#.WAWS_txJtyw" target="_blank">137 Maitland Street </a>has a secure five year lease to ANZ until 2018 with the option to extend to 2023.
This property is in the heart of north-west NSW, with a shire population of around 14,000. It has high exposure to the main street corner site with ample off street parking at the rear.
Surrounding the property are businesses including Domino’s, Subway, Australia Post, Liquorland, Target and Coles.
The tenant is required to pay all outgoing according to the lease and it is an easily managed, single tenanted investment with a net income of $57,484 per annum plus GST.
The property is offered through Burgess Rawson agent Rhys Parker.
It last sold at $660,000 in 2009.
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Established ANZ bank in Narrabri up for auction

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GUEST OBSERVER
Funding markets have shown some stress in recent weeks as investors and borrowers prepare for imminent structural reforms and amid cyclical issues around banks.
We look at the recent moves in single currency and cross-currency basis markets, USD Libor and credit spreads.
With less than two weeks until US money market funds are required to comply with new liquidity and asset rules, we opine on the outlook for funding markets.
Funding markets have seen significant shifts in recent weeks as markets prepare for the upcoming new money market rules in the US. The rules, outlined in US money market reform 2a-7 primer, will come into force on 14 October.
In addition to money market reform, a confluence of factors has increased the cost of funding, namely quarter and year-end as well as concerns around European banks. There has been in recent weeks the usual pickup in funding stresses associated with quarter end – normally because of the need for 3 month funding which rolls over the ‘turn’ of the calendar year (or financial year end for US banks).
With banks now less willing to have significant balance sheet items over their year-end, the cost of USD funds will remain elevated. This quarter end has seen an escalation of this normal arrangement due to the money market reform being implemented at the same time.
Furthermore, as investments shift out of ‘prime’ funds (those who hold credit) to government only funds, the ability of both banks and corporate borrowers who access short-term funding has been diminished. This has forced borrowers out the term curve – or in the case of sectors of the bank market – to simply ‘pay up’ for alternate sources of funding.
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The demand for USD has shown up in the sharp moves in 3 month cross-currency basis swaps (Figure 1) which have lifted the cost of funding sharply in the last week. The JPY basis has been driven by the structural need for Japanese banks to find a new funding source given their large reliance on US MMFs. This issue has not been fully addressed despite an increase in USD funds available from the BoJ. That said, it has led to a wider ‘Japan premium’ (which is the cost of USD 3 month Libor for Japanese banks relative to other members of the Libor panel).
THE BASIS FOR OTHER MOVES
In comparison, the move higher in USD FRA/OIS and Libor/OIS, as well as a gradual but significant rise in 3 and 6 month USD Libor since mid-year, has been gentler. The move in EUR cross-currency basis (see Figure) 1 has come at a time when European banks have been under the spotlight. This unwanted introduction of a systemic threat has augmented the current demand for USD funding.
The basis has moved to the most negative level (highest cost for USD funds) since the European sovereign crisis period in 2012. Both prior to this period and since, central banks have introduced a number of measures to allow for USD liquidity in times of stress.
After a reasonably steady period, the basis has dropped from -25bp to -59bp since mid- September. The spread remains a long way from its historic lows of -210bp in 2008-09 and the -160bp level seen in 2011.
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The demand for USD via the ECB's 1 week funding mechanism has also seen a sharp rise. Last week’s auctions for 1 week USD funding saw just under USD6.4bn awarded to twelve banks. This was the largest amount requested since 2014.
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In the FRA markets, the modest move wider for EUR FRA/OIS has not been matched by the sharper USD move. This suggests that concerns over European banks have not yet shown up in funding for EUR. In fact, the 3 month Euribor/OIS spread is little moved and is at multi-year lows. We believe any stresses are likely to show up in the USD funding markets – rather than in EUR.
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<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.57%20PM.jpg" alt="">
A RISING TIDE
The single currency basis market, at least for USD, has steepened sharply in the last year and has risen significantly higher than the levels seen during the 2012 European crisis. Similarly the USD 3s/1s basis curve has steepened to the highest level since 2009. 3s/1s sits at 25bp, around 3bp higher than what it reached in the European crisis. In the last few weeks, domestic USD basis has stabilised at these elevated levels.
Looking at the forward curves for single currency basis, it would appear that the peak for the 1 year basis has been set and will begin to match the forwards. The risk to this view would be a sustained period of higher USD funding costs and increased market expectations for Fed hikes.
In time, such an outcome should narrow the 1 year 6s/3s and 5 year 6s/3s basis, driven by a rise in the latter.
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OUTLOOK FOR FUNDING POST US MONEY MARKET REFORM
US money market funds now have less than ten days to comply with the new rules governing their operations. As Figure 6 shows, total holdings in prime funds are around USD600bn. While we expect some balance to be retained in the funds that choose to hold credit assets, there is likely to be further reduction in the coming days. This should, all things being equal, push USD Libor and USD Libor/OIS higher and wider.
It is worth noting that while the larger shifts in Libor have reflected a replacement premium for USD bank funding, corporate borrowers are also affected as they will need to source alternate means of funding. These may come via bank revolver credit facilities or through the term market as borrowers.
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After the full implementation on 14 October, we expect markets to stabilise and for the Libor rate to reflect more cyclical news around the banking sector as well as the eventual addition of a premium or reflect market-based expectations of a Fed rate hike in December.
We also expect to see an increase in the issuance of term debt for banks as the ability to use short-term funding comes to an end. This more expensive method of borrowing also comes at a time when other regulatory requirements will be placed on the market.
WHAT TO WATCH
The key variables to watch will be the use of FX USD swap lines at the various central banks (primarily the BoJ and ECB). Domestic USD basis (6s/3s and 3s/1s) and 3 month JPY and EUR cross-currency basis are also important to gauge the demand for USD from non-US counterparties hedging loans, assets, and borrowings.
Bank credit spreads are an important gauge of the market’s perception of asset quality. While these have widened recently, they do not reflect significant concern. The CDS market, once a popular product in financial markets, has become an illiquid and poorly- traded instrument.
Lastly – and perhaps obviously – as the money market reforms are finalised, the USD Libor rate and spread to OIS are expected to rise a little further before stabilising and they represent a more realistic price for USD funding.
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Martin Whetton is senior rates strategist, ANZ. Katie Hill is strategist, ANZ. Both can be contacted <a href="https://www.anz.com/personal/" target="_blank">here.</a>
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