Building Approvals Hits 7-Month Low July 2010

BUILDING approvals have slumped to a seven-month low in May as interest rate crimp demand for dwellings, economists say. Australian building approvals fell 6.6 per cent to 13,412 units in May, seasonally adjusted, from an upwardly revised 14,359 units in April, the Australian Bureau of Statistics (ABS) said on Thursday. In the year to May, building approvals were up 26.6 per cent. The median market forecast was for building approvals to have been flat in the month. It was the fewest number of dwelling approvals since October 2009. ANZ economist Amber Rabinov said the fall in May followed a 11.4 per cent decline the previous month. "They look pretty poor given the strong decline we had in last month's numbers," Ms Rabinov said. "One positive to come out of the building approvals numbers is the step-up in private sector approvals compared to the sharp fall in the headline number." Ms Rabinov said rises to interest rates and the removal of increased grants from the federal government have crimped demand for new housing. The Reserve Bank of Australia (RBA) lifted the cash interest rate by 25 basis points to 4.5 per cent in May, its sixth such move since October 2009. "That is certainly not helping and that is showing up in other housing market indicators," she said. "We are seeing some of the heat come out of the market." JP Morgan Australia economist, Ben Jarman, said the 18.8 per cent fall in private sector other dwellings, which include flats and townhouses, was the main contributor for the overall decline. "Really the downside in building approvals was driven by that high density category which continues to be a volatile swing factor on a month to month basis," Mr Jarman said. "It's probably not surprising that things got a bit tough on that front, again with the rate hike and also with financing conditions remaining a bit tight for developers in the high density space."

Rates On Hold Due to EU Fears: RBA July 2010

UNCERTAINTY over the European debt crisis prompted the Reserve Bank of Australia (RBA) to leave the cash rate on hold, the minutes of the bank's June board meeting show. But the minutes also show the central bank remains positive about the medium-term outlook for the Australian economy, despite a month of patchy economic data. At its June 1 board meeting, the RBA held the cash rate at 4.5 per cent. It had taken the rate higher six times since the beginning of October 2009, when the rate was at a 49-year low of three per cent. "Members judged that these previous monetary actions afforded policy the flexibility to await information on how the recent market uncertainty might affect the global economy, as well as the outlook for inflation," the minutes, released on Tuesday, said. The bank said most of the market uncertainty came from Europe amid fears the debt crisis currently gripping Greece, Spain and Portugal could spread to other EU nations. "Sentiment has deteriorated sharply in the period following the previous board meeting as concerns about the fiscal position of Greece, Spain and Portugal intensified," the minutes said. "Some governments were now in the very difficult position of having to tighten fiscal policy at a time when growth remained weak." The RBA said it would wait and see if and how the volatility in global markets would affect Australia and the rate of inflation. Despite spending a large portion of the minutes discussing the pessimistic European landscape, the RBA said it remained optimistic about the medium-term outlook for the Australian economy. "While the international environment facing the Australian economy had become more uncertain, members noted that the medium term outlook remained positive," the bank said. Recent economic indicators had been mixed, the RBA said. High levels of activity in the construction industry were the result of federal government stimulus measures, while retail spending had been subdued amid signs of a slowing housing market. In contrast, local business confidence and conditions were above long-term average levels amid signs financing for businesses and firms were improving, but still remained tight. "Most indicators suggested that the economy was continuing to expand and employment growth had been solid. "Conditions, however, clearly differed across sectors and aggregate spending was still being supported by public (sector) demand." The bank also noted that expected disinflationary pressures in the economy had not turned out to be as strong as expected. Wages growth in the private sector had accelerated in the first quarter of the year, while public sector wages remained firm and above the average of the past decade. "While recent data for prices and wages suggested that the disinflationary forces in the economy were not quite as strong as previously expected, global events could also have implications for the inflation outlook for the medium term."

Mortgage applications plunge 15% June 2010

RESIDENTIAL mortgage applications plunged in the March quarter after the government's first home owner's grant was wound back to pre-financial crisis levels, a survey found. Total mortgage applications fell 15 per cent in March quarter compared with the corresponding period a year earlier, the quarterly consumer credit demand index by consumer credit Check Company Veda Advantage showed. The fall represented the first quarterly decline in consumer mortgage demand since the December 2008 quarter. Total mortgage applications to March 31 dropped by eight per cent on the December 2009 quarter, Veda said in a statement on Wednesday. The federal government boosted the first home owners grant in October 2008 from $7,000 to $21,000 for the construction of new homes, and $14,000 for existing dwellings. The grant for the enhanced scheme was wound back to $14,000 in October last year for new homes and $10,500 for existing dwellings, and reverted back to $7,000 from January 1 this year for both categories. Veda's consumer credit demand index is compiled from more than 42 million consumer credit enquiries from October 2002 to March 2010, but does not provide separate data for first home buyer applications, a Veda spokeswoman said.

New homes sales mixed report June 2010

AAP New homes sales surged up six per cent in April due to strong growth in Victoria, a Housing Industry Association (HIA) report shows. Private sector detached house sales increased 6 per cent in April, while multi-unit sales rose 8 per cent following two soft months in February and March, the report found. Over the three months to April 2010, new detached house sales were up 19 per cent in Victoria and 1 per cent in South Australia. But they were down 6 per cent in NSW, 4 per cent in Queensland and 2 per cent in Western Australia. Detached new home sales increased by 27.6 per cent in Victoria and 4.3 per cent in SA in April. Meanwhile detached house sales fell 9.6 per cent in NSW, 4.5 per cent in Queensland, and 8.2 per cent in WA. HIA chief economist Harley Dale said the new home sales report of Australia's major residential builders showed new home building in Victoria defied higher interest rates due to the state government's first home buyer top-up grant for new dwellings.

6th Interest Rate Rise in a Row

The Reserve Bank has again slugged the nation's borrowers, raising its key interest rate today for the third month running as it moves to keep inflation in check. The central bank lifted its cash rate by a quarter of a percentage point to 4.5 per cent, its highest level since the end of 2008. The move was tipped by a majority of economists after surges in consumer price inflation and house prices in the March quarter. Sixth since October This month’s interest rate rise marks the sixth increase since October 2009. The string of rate hikes, broken only by the summer break in January and February 2010's pause is aimed at discouraging excessive borrowing as economic growth returns to more normal levels. Before today's rates verdict, investors were pricing in at least four interest rate increases over the next 12 months, which would bring the RBA's cash rate - the starting point for banks when they calculate standard variable and other lending rates to 5.25 per cent. Financial markets lost ground after the RBA move. The Australian dollar fell to .89 US cents in late afternoon trading, while stocks extended losses to close about 1 per cent down for the day.

Foreign investors hike up house prices May 2010

FOREIGN investment in Australian property is pushing up the price of housing and squeezing Australians out of the market, federal opposition housing spokesman Kevin Andrews says. Changes to foreign investment rules by the federal government to allow non-resident overseas buyers to buy residential property in Australia was a problem, Mr Andrews said. After meeting with housing and real estate industry representatives in Perth on Wednesday and in other capitals it was clear the number of non-residents buying into the market was increasing, he said. "I've met with representatives elsewhere in Australia and it's quite clear both that in Perth and in Sydney and Melbourne and elsewhere around Australia there has been a significant influx after the last few months of foreign non-resident buyers of residential property in our cities," Mr Andrews told reporters in Perth. "I was told here this morning of instances where one family bought numerous houses, doing that by using the names of different family members on the contracts. "This is forcing up the housing prices for young Australians. It's meaning that Australians who go to auctions now or other ways of buying property are finding it much more difficult to get into the market." Houses bought for capital gains purposes were sitting empty in Australia in some cases, Mr Andrews said. "It's totally inappropriate. It came about because the Rudd government changed the rules last April and the exploitation of these changes in the rules is to the disadvantage of many Australians," he said. The changes have allowed foreigners holding temporary visas to buy property in Australia, and the government has effectively lost control of monitoring the level of foreign investment in the market, a spokesman for Mr Andrews said.

Mortgage applications plunge 15% May 2010

RESIDENTIAL mortgage applications plunged in the March quarter after the government's first home owner's grant was wound back to pre-financial crisis levels, a survey found. Total mortgage applications fell 15 per cent in March quarter compared with the corresponding period a year earlier, the quarterly consumer credit demand index by consumer credit check company Veda Advantage showed. The fall represented the first quarterly decline in consumer mortgage demand since the December 2008 quarter. Total mortgage applications to March 31 dropped by eight per cent on the December 2009 quarter, Veda said in a statement on Wednesday. The federal government boosted the first home owners grant in October 2008 from $7,000 to $21,000 for the construction of new homes, and $14,000 for existing dwellings. The grant for the enhanced scheme was wound back to $14,000 in October last year for new homes and $10,500 for existing dwellings, and reverted back to $7,000 from January 1 this year for both categories.

$50m to save homebuyers: PM April 2010

HOMEBUYERS will save an average of $20,000 on more than 3200 homes and housing lots following a $50 million investment in housing-related infrastructure, Prime Minister Kevin Rudd says. He said the money, which will be drawn from the Housing Affordability Fund, will be spent on water pipes, sewerage, road work and community facilities in housing developments. "It will be welcome news for families looking for a new home," he told the ADC Cities Summit in Melbourne on Monday. "Too many Australians are locked out of the housing market." Mr Rudd said the investment would bring more than 7000 lots forward between six and 14 months faster than would otherwise have been the case. "This will deliver around $26,000 in savings to around 450 homebuyers," Mr Rudd said.

Home sales fall in Feb: HIA report April 2010

NEW home sales fell in February, raising concerns about the sustainability of the housing recovery, amid the prospect of further interest rate rises. The Housing Industry Association (HIA) New Home Sales report showed a 5.2 per cent dip in sales to around 7000 dwellings in February. The fall follows a 9.5 per cent rise to 8,444 new home sales in January. The HIA said the February fall raised fresh concerns regarding the sustainability of a recovery in residential construction and that deterrents to building new homes such as land shortages would push potential buyers towards existing homes. HIA chief economist Harley Dale said residential construction was still relatively strong, reflecting the monetary and fiscal policy stimulus of last year. "This stimulus has been highly successful in driving the first stage new home building recovery but that stimulus will soon start to fade, Dr Dale said in a statement on Monday. "Land and labour shortages, frustrating planning delays and the inequitable level of taxation and regulation on new housing are all deterrents to households entering the new home market as opposed to existing property. "All these supply-side obstacles require urgent attention or Australia's chronic housing shortage will worsen and we will, perversely, see more upward pressure on interest rates than would otherwise be the case.

Cheapest in the country March 2010

The Reserve Bank might be trying to put the brakes on the economy by lifting the rates by .25% this month with the spectre of rising inflation, but it's cold comfort for Gold Coast hotels which yesterday were labeled among the cheapest in the country. Flagging demand for accommodation on the tourism strip has seen average room rates slump 14.8 per cent in the past year. According to Hotels.com hotel price index, the Coast is the second cheapest hotel market in Australia, only just ahead of Cairns which has been ravaged by a sharp downturn in the inbound tourism market. The average room rate on the Coast in 2009 was $135 a night, down from $157 in 2008. Cairns room rates were bumping along the bottom at $117 a night, down from $127 a year earlier. The news may be good for travelers but it is a major sign of stress in Queensland's two key tourism markets which have so far failed to benefit from the rebirth of Australia's resources boom in the past 12 months. The boom is being touted as one of the key reasons for the Reserve Bank yesterday lifting the official cash rate by 0.25 percentage points to 4 per cent. The strong Australian dollar has made hotel stays in Europe 13 per cent cheaper, on average, than in 2008 and 14 per cent cheaper the US. The Asia Pacific region was 16 per cent cheaper, while Latin America was 21 per cent down on a year earlier. Gold Coast hotel industry consultant Mike Jones said despite the downturn, he was hopeful of an upturn for the tourism strip towards the end of this year. He said the slide in Coast room rates was largely driven by a slump in corporate travelers who traditionally paid more per room night than the leisure traveler. "There is certainly a degree of optimism for the second half of the year," he said. "But it's going to be very dependent on the economy in general." Mr Jones said the slide in corporate visitors would see competition among Coast hotels for conferences also heat up this year.

Sunland holding on March 2010

The end of the Dubai property boom washed through Sunland Group's first-half profit yesterday after the Gold Coast developer posted an $8.4 million bottom-line result. The profit for the six months to the end of December is down 87 per cent from $67.8 million a year earlier, but the previous result reflected buoyant conditions in Dubai which was sailing through the global financial crisis at the time. The latest result sets Sunland up to deliver on its promised $15 million profit for the full year, putting the company on a 'back-to-basics' track after the turmoil in the Middle East. Sunland is still pushing ahead with the Palazzo Versace and the 80-level D1 tower in Dubai, with the projects 60 per cent and 40 per cent respectively completed. Managing director Sahba Abedian said changes to Dubai law also had helped Sunland pursue wayward property buyers who had reneged on instalment payments for both projects. Mr Abedian would not disclose how many buyers were likely to default on settlements, but he said the company was 'working through the issues' with individual purchasers. Sunland, which yesterday reiterated its developments in Dubai had no recourse to the listed company in Australia, is likely to reveal the number of defaults at the end of this financial year. Meanwhile, Sunland is edging closer to two new high-rise projects in Australia, one in Brisbane City on a $25 million site bought from Devine Group last year, and another at Labrador on the Gold Coast. The Brisbane site, part of Devine's abandoned French Quarter proposal, is earmarked for a 40-level $250 million luxury apartment tower that Sunland promises will be a 'landmark' for the city. The Labrador project, on Marine Parade, is going through the council approval process and will be launched later this year. Neither high rise is expected to add to Sunland's bottom-line profit until 2013. Mr Abedian said the latest profit result was 'sound' in the prevailing conditions, showing Sunland had repositioned itself into market segments that were performing. Sunland has 600 contracts awaiting settlement at existing developments and another six projects to launch, he said. Mr Abedian said the company was expecting organic profit growth in the next few years from its current housing projects and it was still on the lookout for potential development sites. "We are in a strong position to pursue acquisitions but we are being very cautious," he said. In the first half, Sunland splashed out $23.4 million for the remaining undeveloped land at The Glades golf estate at Robina, bought from long-time developer Thakral Holdings. Sunland's latest result has been built on revenue of $111.7 million, down from $323.6 million a year earlier. It had a net asset backing of $1.27 a share at the end of December, down from $1.97. Dubai operations accounted for just 8c of the latest figure, valuing Sunland's operations there at $24.4 million. There was no interim dividend announced.

Another one bites the dust March 2010

CAPITAL Finance has pulled its funding for one of the region's up market beachside developments, forcing four Ray Group companies into receivership. The Australian arm of the British Lloyds Banking Group, which suffered an ugly exposure to the Raptis Group's troubled Southport Central project in 2008, has refused to pour any more money into Salt Village on the Tweed Coast. Capital Finance, which owns the remaining unsold lots in the estate, is understood to have inherited the assets through the collapse of MFS (since renamed Octavia) two years ago. Salt Village was a joint venture between MFS and Ray Group, which has been acting as project marketer for the $750 million development for the past three years. Ray Group chief executive Tom Ray, son of company founder the late Brian Ray, said his family retained 'no equity position in the Salt Village development assets'. It is understood the remaining lots owe Capital Finance which has funded Salt since 2002 about $33 million. "We have remained with the project because we strongly believe in it and because we considered that we were the right people to manage its continued development in the best interests of the financier and in the best interests of the Salt Village community," said Mr Ray in a statement. The four Ray companies placed in receivership are South Kingscliff Developments, Salt Developments, Kingscliff South and The Kingscliff South Discretionary Trust. Mr Ray said that the receivership was isolated to only these companies and that remaining entities within the group were not affected. Ray Group operates Ray Real Estate, Salt bar Beach bar and Bistro, Salt Cellars bottle shop and Salt Village IGA supermarket within the estate. "The Salt Village commercial businesses are performing well, with no financial or security obligations to any bank or person," said Mr Ray. "Salt Village has been and remains a good project. "The fact that the financier has withdrawn funding to the development assets would seem to us to have nothing to do with the project, but perhaps it has to do with the financier's own issues and presumably a desire to repatriate funds from Australia." A Capital Finance spokesman denied this was the case and that its decision was for 'purely commercial reasons'. Mr Ray was in talks with receivers yesterday and could not be contacted for further comment. A spokesman said that sub-contractors would not be out of pocket from the receivership as most of the development work had been completed for some time. Only 10 per cent remains to be developed of the 73ha Salt project which will bring a total of 1500 homes to the market when completed. The British financier has a major exposure to the Coast property market, including Southport Central and the Fish Group properties at Hope Island.

Australia’s land prices rise Feb 2010

The dream of building a home has become dearer for Australians as land prices have risen to a new high, a survey says. The Housing Industry Association (HIA)-RP Data residential land report found the weighted median price of a vacant housing block rose by 5.7 per cent in the September quarter to $181,158, from the previous quarter. HIA chief economist Harley Dale said new home starts would rise in 2010 but the improvement in the industry may not continue next year. The survey found the number of residential land sales rose 33 per cent in the September quarter of 2009 compared to the corresponding period in 2008. "The million dollar question is whether a new home building recovery can be sustained beyond this year," Dr Dale said. "If land is not released in a timely manner in sufficient quantity, then land prices will continue surging and the answer will be a resounding no." Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. Sydney remains the dearest market, with a median price of $290,000, the report found. NSW Richmond Tweed area was the most expensive regional market, with a median price of $255,000, while the Murray Lands region in South Australia was the cheapest, with a median price of $69,500. RP Data national research director Tim Lawless said rising interest rates would hinder first home buyers from entering the property market, while demand from investors should continue to increase in 2010. "Increasing interest rates along with the removal of the first home buyers grant boost are expected to result in demand from the first home buyer sector diminishing significantly during 2010, after reaching historical highs during 2009," Mr Lawless said. The value of investor housing loans has risen by 9.6 per cent since its recent trough in July 2009, Mr Lawless said. Australians' love for property continues to regain momentum after the national house price index rose 4.4 per cent in the September quarter, official data showed earlier in the week. Subsequently, the house price index rose 5.2 per cent in the December quarter.

Cheap Unit Resurgence Jan 2010

GOLD COAST unit and townhouse prices have staged an end-of-year resurgence, but are still fighting to reach the prices of 2007-08. Statistics from the Real Estate Institute of Queensland show Gold Coast median unit and townhouse prices grew 5.6 per cent to $368,000 in the September quarter, with Biggera Waters, Bilinga, Broadbeach Waters, Helensvale and Broadbeach showing the strongest growth during the year. Sale numbers also surged in the period, up 8 per cent. But the median price for units and townhouses across the Gold Coast declined by 5.3 per cent in the year to September, from $375,000 to $355,000. Units at Clear Island Waters took the biggest fall for the year, dropping 18.9 per cent to $361,000, followed by Bundall which dropped 17.9 per cent to $320,000 and Currumbin, which fell 14.7 per cent to $388,000. The single biggest growth was at Bilinga, with prices rising 8 per cent to $459,000. Real Estate Institute of Queensland Gold Coast regional manager Ray Milton said the quarterly figures showing growth were positive and first home buyers had turned to units because of their affordability. He said sales had been solid over the period and said the next 12 months would be a good indicator of how well the economy had recovered. "It has been better than we expected," he said. With the effects of the financial crisis and the fact there has been a perception of interest rates increasing, we're fairly comfortable overall and the market is steadying." The REIQ figures showed about 50 per cent of Queensland unit and townhouses sold in the September quarter went for less than $350,000. Brisbane's median unit and townhouse price increased 1.9 per cent to $389,500 over the quarter, the Sunshine Coast had an increase of 3.4 per cent to $359,900 while Bundaberg recorded a 9.8 per cent increase to $285,500

Home approval may be cut to 5 days Jan 2010

UP to 95 per cent of residential development applications on the Gold Coast will be approved within five days under a project announced by the Rudd Government yesterday. Federal Housing Minister Tanya Plibersek unveiled the $3.65 million Target Five Days Project and the $1.1 million Next Generation Planning Project while in the region yesterday. The initiatives, which will be paid for by the Housing Affordability Fund, promise to cut processing times for 95 per cent of residential applications to five days and standardise residential housing codes and policies across southeast Queensland. Property organisations on the Coast cautiously welcomed the news, hopeful the plan would deliver a partial solution to the millions of dollars in projects being lost to the city each year as a result of delays in council approvals, land shortages and high infrastructure charges. Property Council Gold Coast committee chairman Peter Trathen said anything that could be done to increase the speed of council approvals was a step in the right direction. "At this stage we are unsure of the details and would like more information about the schemes, but it looks positive at face value," said Mr Trathen. "The need for fast approvals is one of the top 10 priorities for the Gold Coast." Mr Trathen said he hoped an improvement in simple residential approvals would mean big projects were dealt with more quickly. "If we can get the low-risk applications done in five days then council staff could be freed up for major developments," he said. Mr Trathen said it was not unusual for large developments to be stalled for 18 months to two years waiting for council approval. "Application delays are a key factor pushing developers to go elsewhere or not build at all," he said. "The shortage of land and council infrastructure costs are also impacting."

Good time for Investors to buy as Land Lords are the Big Winners Dec 2009

The Gold Coast property market still cannot catch a break as its recovery continues to lag behind the rest of the country as experts warn rental prices could skyrocket in the coming year. Latest RP Data figures show house prices across the country bounced back in October after a sluggish September, but Brisbane -- and subsequently the Gold Coast were among the slowest to join the recovery. Australian house prices rose by 1.4 per cent in October after just 0.4 per cent growth in September, recording a 10 per cent rise in the past 10 months. While Sydney lead the charge with 14.9 per cent growth so far this year, Brisbane only managed to grow 6.9 per cent. "Brisbane has been lagging behind what we are seeing in Sydney and Melbourne, where there has been pretty strong growth, and there hasn't really been many signs of improvement," "That is relevant to the Gold Coast as well ... coastal areas linked to tourism will continue to take longer to recover. "As interest rates rise over the next 12 to 18 months more normal rates of growth are likely. "The removal of the first home owner’s grant boost and higher loan costs will also result in greater pressure on the rental market." Leading industry economic forecaster BIS Shrapnel has also warned of looming rental pain with the Gold Coast falling into a rental property supply crisis. Senior economist Jason Anderson said in the next three years to 2012, national average yearly rental growth would be 5.8 per cent, resulting in rental households passing an extra $1.9 billion to landlords each year. The serious decline in construction of medium and high-density housing -- to the lowest levels since 1991 -- has caused the Coast crisis.

Interest rates rise 3 in a row Dec 2009

Australia’s Reserve Bank lead by Glenn Stevens will continue leading the world in raising interest rates, with economists predicting a record fourth straight increase at the central bank’s next meeting in February. Reserve Bank Governor Stevens will boost the overnight cash rate target by another quarter point to 4 percent on Feb. 2, adding to yesterday’s unprecedented third monthly increase, according to all 16 economists surveyed by Bloomberg News. Australia’s economy has outpaced the U.S., Europe and Japan, which have all kept rates near record lows this year. Cash handouts by Prime Minister Kevin Rudd’s government have boosted consumer confidence and house prices, and China’s demand for resources such as iron ore from Rio Tinto Group and BHP Billiton Ltd. has stoked a new mining-jobs boom. “Reserve Bank officials are taking the path of least hazard,” said Stephen Walters, chief economist at JPMorgan Chase & Co. in Sydney, who tips another increase in February followed by further “steady” gains in 2010. “They are hiking while they have time on their side and the exit from emergency settings can be orderly.” Below are the changes to interest rates over the past 2 years; 2 Dec 2009…….. +0.25 = 3.75% 4 Nov 2009…….. +0.25 = 3.50% 7 Oct 2009………+0.25 = 3.25% 8 Apr 2009………-0.25 = 3.00% 4 Feb 2009………-1.00 = 3.25% 3 Dec 2008………-1.00 = 4.25% 5 Nov 2008………-0.75 = 5.25% 8 Oct 2008……….-1.00 = 6.00% 3 Sep 2008……….-0.25 = 7.00% 5 Mar 2008………+0.25 = 7.25% 6 Feb 2008……….+0.25 = 7.00% 7 Nov 2007………+0.25 = 6.75%

House prices in major Australian cities are forecast to grow Nov 2009

House prices in major Australian cities are forecast to grow by about 20 per cent between now and 2012, according to a report from mortgage insurer QBE Lenders’ Mortgage Insurance (QBE LMI). QBE LMI’s Housing Outlook report for 2010 to 2012, researched by BIS Shrapnel, confirms that recent low interest rates had helped to alleviate mortgage pressures on households, while bringing housing affordability back to its most attractive level for almost a decade. QBE LMI chief executive Ian Graham said low interest rates, solid growth in rents and housing shortages would create favourable conditions for a strong recovery in residential property prices through to 2012. “Double digit house price growth is forecast across all capital cities from June 2009 to June 2012,” Mr Graham said. QBE LMI said Sydney house prices were forecast to grow by 21 per cent between now and 2012. Melbourne’s house prices were expected to grow by 19 per cent, price growth in Brisbane was forecast at 15 per cent, and Adelaide house prices were predicted to grow by 23 per cent. Lower growth of 12 per cent was projected for Perth, influence by a decline in investment in the resource sector after the record levels seen in recent years, Mr Graham said. QBE LMI is a mortgage insurer that operates in the Australia, New Zealand and Hong Kong markets. Its parent, the QBE Group, is listed on the Australian Stock Exchange and has offices in 45 countries throughout the world.

Major works boost infrastructure Nov 2009

The final stage of the $14.5 million upgrade of Reserve Road, Upper Coomera has commenced as Council continues to roll out its major roads program and deliver more infrastructure to major growth areas. This will see a 1.9 kilometer stretch of Reserve Road from the Old Coach Road intersection to south of Brygon Creek Road upgraded to a four-lane arterial road to reduce traffic congestion in Upper Coomera. Existing remnant forests in the area will be protected, and a wildlife tunnel and funneling fencing will also be included to provide safe passage for koalas and other wildlife. Due to the scale of the project, some short traffic stoppages during working hours are expected. However, one lane each way will generally remain open during the works. The project is expected to be completed in late 2010.

Migrants and baby boom sheltered us from crisis Oct 2009

The fertility gods may have saved Australia from the global financial crisis, but it has cost Queensland its position as preferred destination for interstate migrants. A new report commissioned by chartered accountants PKF has found that Queensland's appeal as a place to work and live has begun to wane among Australians. "Mining jobs are being lost and tourism jobs are following a similar fate, leaving the rest of Australia a little less tempted to follow the sun and move north," said the PKF report which was compiled by Access Economics. But the report, released yesterday, said international migration has taken up the slack, helping the state to a net annual gain of 106,700 people, the second biggest rise of any state. "While Queensland's population is the good news, over the past year it accelerated much less than the national equivalent," said the PKF report. It also said that, while international migration was strong, it was below the national growth trend. Australian Bureau of Statistics figures last month revealed overseas migration and a higher birth rate had pushed Australia's population to just less than 22 million. It was the biggest population spurt in 40 years and a key factor in the country's resilience against the global economic downturn. "Arguably the unsung hero of Australia's defense against the downturn has been our magnificent population growth," said Mike Sheehy, managing director of PKF Gold Coast. "People power is part of what is driving us along relative to others. "Put simply, more people equal more customers, and therefore more jobs." But despite the strong numbers, Mr Sheehy said the economic slowdown had taken the steam out of Queensland's population momentum, particularly in regions outside of the southeast corner. Mr Sheehy said while the Gold Coast had suffered on the economic front more than the rest of the state, it would continue to lure its fair share of migrants. "We are an attractive area in our own right, whereas in the rest of the state the pull is more contingent on economic drivers," he said. "Anecdotally, promising signs of green shoots are emerging across key Gold Coast industry sectors. The medium-to-long-term outlook is returning to optimistic." However, PKF's director Matthew Field has warned the 'sunbelt' states of Queensland and WA may yet see a 'delayed impact' on the economy 'as resources work and construction continue to wind down'. But he also saw opportunity in big population gains, particularly from international migrants. "These are the customers that businesses should target: new Australians who need homes, furnishings, clothes, food, everything to start their new life in this country," he said. "Not only are migrants the most likely to spend money and push forward the economy, they will also help create a demand for new services and more jobs. "An open migration policy has been, and will continue to be, important to the success of Australia's economic environment. "The challenge for businesses is to identify the gaps or the slow growth areas in their states and work to address them."

754,000 houses needed by 2031 Sept 2009

AUSTRALIA'S fastest growing region, Queensland's South East corner, will need an extra 754,000 homes to cater for population growth, a new report shows. Planning Minister Stirling Hinchliffe on Tuesday released the updated South East Queensland Regional Plan in Brisbane, which will govern how the region is managed from this year to 2031. Mr Hinchliffe told reporters the region's population would grow from 2.8 million to 4.4 million by 2031 and require 754,000 extra dwellings. He said the regional plan would encourage development away from the coast and towards a corridor west of Brisbane. The plan is expected to protect more than 85 per cent of the region from urban development by restricting development outside an area known as the "urban footprint" and identifying areas within the urban footprint for future urban growth. Mr Hinchliffe said the plan set an urban dwelling target of 15 homes per hectare. "That is a style of housing and a style of residential accommodation that people in southeast Queensland know very well if they know suburbs like New Farm, like Cooparoo," he said. Mr Hinchliffe said he was committed to protecting "the great backyard" as a housing option. "But we can't have that across the whole of the region without breaking out and creating that sprawl that we don't want to have, without damaging the 85 per cent of the southeast that's being protected," he said. The plan also contains a strategy to protect koalas, whose habitat is gradually being developed.

Home owners to 'brace for rates hike' Sept 2009

Home owners should brace themselves for a jump in the mortgage repayments of over $5,000 a year over the next 18 months, a mortgage broker has warned. While economists expect the Reserve Bank of Australia (RBA) to leave the official cash bank unchanged at a 49-year low of 3.0 per cent at Tuesday's monthly board meeting, the central bank has warned it will need to raise the rate to "a more normal" level at some stage. Loan Market Group executive director John Kolenda says homeowners can expect variable mortgage rates to rise by around two per cent over the coming 18 months. "Don't get accustomed to such low rates and get prepared for eventual rate increases," Mr Kolenda said in a statement. "Even Reserve Bank Governor Glenn Stevens has warned consumers to allow for a two per cent increase in the future which would see variable rates at around 7.8 per cent. This he says would still leave home lending rates slightly below historical medium levels of 8.0 to 8.5 per cent. But a 200 basis point increase would add about $450 to monthly mortgage repayments, or some $5,500 a year on an average home loan of $340,000. Mr Kolenda said while the surge in rates won't happen overnight, he said homeowners should be aware of the potential impact on budgets and lifestyle.

Gold Coast - One way to grow -Up Aug 2009

The South East Queensland Regional Plan 2009-2031, released yesterday, says almost 300,000 newcomers are expected to try to squeeze into the southeast corner of the state in the next 22 years. To house them will take 143,000 new dwellings. Broad acre undeveloped land is expected to provide about 32,000 dwellings but that is expected to run out by about 2016. That leaves about 97,000 dwellings to be built on 'infill' land -- existing areas already zoned and in some cases occupied by housing. The report does not say where the remaining dwellings will be built. Releasing the 160-page report, Infrastructure and Planning Minister Stirling Hinchliffe said the plan 'struck a balance between population growth and protecting our lifestyle' but also drew a firm line between development land and that protected from development. "The plan makes sure there is adequate land for development while safeguarding 85 per cent of the land from development," he said. This would be achieved through the creation of high-density living areas with 'at least' 15 dwellings per hectare in 'infrastructure-rich' areas already defined by local councils. Mr Hinchliffe said he would protect the 'great back yard' as a housing option 'for as long as I'm around' but said it was impossible to have the great backyard option over the entire region 'without creating the (urban) sprawl we are trying to avoid -- without damaging the 85 per cent of the region being protected'.

PROPERTY SQUEEZE PREDICTED Aug 2009

Home buyers on a budget face the prospect of being squeezed out of the Gold Coast's pricey property market. That is the view held by real estate information service RP Data as governments increasingly look to high-density housing to meet the region's growing housing needs, say experts. Information released yesterday by RP Data reveals Gold Coast suburbs are already the most expensive in Australia, outside the capital cities. In a list of the top 10 most expensive regional suburbs for median house prices in Australia, eight are on the Gold Coast -- including the top seven. According to the information, Surfers Paradise ($1.284 million) Mermaid Beach ($1.1 million), Paradise Point ($877,500), Bundall, ($862,000) and Clear Island Waters ($843,750) are the most expensive regional suburbs for median house prices in Australia. Seven Gold Coast suburbs, including Hope Island ($705,000), Hollywell ($645,000) and Bilinga ($602,000) feature in a list of the top 10 most expensive regional suburbs for median unit prices.

First Home Owners Push up Prices July 2009

TWO-thirds of Australians believe the federal government's more generous first homeowners grant is pushing up house prices, a new survey shows. An online poll conducted by mortgage broker Loan Market Group found 35 per cent of those who said the grant had inflated prices believed it had only impacted on the lower end of the property market, while 31 per cent said it had not stopped them from buying real estate. One in five of the 633 respondents in the poll, released on Monday, said the boosted grant had no effect on prices and 13 per cent thought property values had actually fallen. The government doubled the first homeowners grant to $14,000 for established homes and trebled it to $21,000 for new properties last October as part of its first stimulus package. In the May budget the grant was extended until the end of the year from an original June 30 deadline, but it will be pared back to $10,500 and $14,000 respectively from October 1 before returning to $7,000 for both categories on January 1 next year. Loan Market executive director John Kolenda said the grant has underpinned the market and even given it some buoyancy, especially at the lower level, during the global financial crisis. "The residential real estate sector in Australia has so far weathered the worst of the downturn and the grant has played a major part in shoring up the market," he said. The combined effects of softer property prices, low interest rates and the boosted grant had created an environment in which many more Australians had been able to afford a home. The government has said more than 97,000 people have taken up the boosted grant so far. Official housing finance data for May are released on Wednesday. In April, the data showed a record 28 per cent of home loans granted in the month were taken out by first-time buyers.

Inflation at seven-year low July 2009

AUSTRALIA'S annual rate of inflation has slowed to a seven-year low as the downturn in the economy restrains price rises, a private-sector survey shows. The TD-Securities/Melbourne Institute inflation gauge rose 0.4 per cent in June, following a 0.3 per cent fall in May and no change in April. In the 12 months to June, the inflation gauge rose by 1.4 per cent - the lowest annual rate since the start of the series in mid-2002. The annual rate in May was 1.5 per cent. Annual inflation, as measured by the gauge, has been below the lower end of the Reserve Bank of Australia's (RBA) two to three per cent target range for inflation for the second consecutive month. Price rises for private motoring, insurance services and fruit and vegetables were the major contributors to the overall change in June's result. Falls in prices for books, newspapers and magazines, alcoholic drinks, meat and seafood’s helped offset some of the overall rise. TD Securities senior strategist Annette Beacher said June's 0.4 per cent rise followed a three month period of prices falling by 0.4 per cent. "The volatility is usual in monthly data, but the key takeaway from the inflation gauge is that inflation is low and falling and has further downside risks," Ms Beacher said in a statement. "The collapse in inflation pressures is evident in the fact that in the nine months since September 2008, prices have risen by a grand total of 0.4 per cent which is an average of 0.04 per cent per month." Ms Beacher said inflation would continue to be below the RBA's target range until at least mid-2010. Australia's headline consumer price index (CPI) rose 0.1 per cent in the March quarter, for an annual rate of 2.5 per cent, the Australian Bureau of Statistics (ABS) said. "As a result, the RBA board meeting tomorrow will no doubt discuss the case for an immediate interest rate cut," she said. "On inflation grounds, the case is compelling, but as has been the case in recent months the RBA is placing a lot of faith in the momentum in China to drag Australia out of recession and this may see the RBA, yet again, defer the rate cut decision to the following month." The Reserve Bank board will hold its monthly meeting on July 7. All 19 economists surveyed by AAP expect the RBA to leave the overnight cash rate at three per cent, a 49-year low. Professor Don Harding, of La Trobe University Department of Economics and Finance, said there had been price rises in 30 spending groups and falls in 20 groups for a net balance of ten rises in June's survey. "This measure of price pressure is consistent with the trimmed mean and ex-volatile measures of inflation, all of which suggest that core inflation is contained within the RBA target range," Professor Harding said. Professor Harding said there was insufficient evidence of emerging inflation to consider lifting interest rates for now. The ABS will release the CPI for the June quarter on Wednesday, July 22.

Building Approvals Up June 2009

Building approvals rose across Australia for a second consecutive month in March helped by lower interest rates and boosts to governments grants for first home buyers, economists say. Australian building approvals rose 3.5 per cent to 10,494 units in March, seasonally adjusted, the Australian Bureau of Statistics said on Tuesday. This followed a eight per cent rise in February. In the year to March, building approvals fell 16.5 per cent. The market forecast was for building approvals to have posted a rise of 2.8 per cent in March. NAB Capital senior market economist, David de Garis, said a lift in the latest indicators of housing had resulted in an increase in building approvals. "We have seen the demand for housing pick up in the finance figures and the home sales data," Mr de Garis said. "That has flowed through into the first signs of activity, with builders making more plans for construction." Approvals to build homes increased by 196 units to 7,333 units in March, while approvals to build flats, townhouses and villas rose by 78 units, the ABS said. Despite reports of the federal government ending the boost to the first home owners grant on June 30, Mr de Garis said the policy has worked in lifting work in the building industry. In mid-October, the government doubled the first home buyers grant to $14,000 for established houses and tripled it to $21,000 for newly built homes. "The boost to the first home owners grant has done its job," Mr de Garis said. "It will flow through to more activity in the second half of the year."

Fixed Rate Time May 2009

Borrowers are enjoying generational low interest rates but should consider switching at least a part of their home loan to a fixed mortgage, a leading mortgage broker says. Loan Market Group executive director John Kolenda said now was the best time to fix a home loan even though the Reserve Bank of Australia (RBA) was expected to further cut interest rates. "The best time is always that window before variable rates reach the bottom," Mr Kolenda said. "If the variable rates bottom out and fixed rates start to hedge up, then they (consumers) miss the boat and it is going to cost more." ICAP senior economist Adam Carr said it was a "fantastic time" to fix the rate on a loan. "What is your downside - the reality is even if the RBA cuts a few more times, banks are not going to pass all of it now," Mr Carr said. "The risk is that you miss the swing and you are going to be caught out." Westpac offers a three-year fixed rate loan at 5.39 per cent compared to their standard variable rate at 5.91 per cent. Between September and April, the RBA has lowered the cash rate by 4.25 percentage points to three per cent, a 49-year low, in a bid to stimulate the local economy. Commercial banks have passed on most of the cuts to official interest rates but three of the four big banks passed on less than half the RBA's cut of 25 basis points to the cash rate on April 7. National Australia Bank left their rate unchanged. Mr Kolenda said borrowers could split their mortgage into fixed and variable components. "With fixed rates, there is a certainty of knowing what your monthly payments are," he said. "If you take a part-variable loan, you get the added benefit that whatever extra payments you make, you can just pile that into the variable-rate component and get that down as quick as you can." Mr Carr said when the RBA started raising the cash rate, the movement to a neutral monetary policy stance - with a cash rate around five per cent - would be swift. Borrowing rates, variable and fixed, would move accordingly, he said. "When they go up, they are going to go up pretty quickly because it will be one-way traffic," Mr Carr said. "Banks will need to fix that as they will need to hedge against that themselves."

RBA cuts rates by 25 basis pts to 3% April 2009

The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to 3.00 per cent, the lowest level since 1960. Economists were divided over whether the central bank would leave rates on hold, or cut rates by as much as 50 basis points, following a board meeting earlier today. Federal Treasurer Wayne Swan welcomed the move, which he said would help cushion the Australian economy from the global recession. RBA governor Glenn Stevens said even though the amount of debt carried by households had been lowered considerably by previous rate cuts and fiscal policy measures from the government, the board had decided there was still scope for another rate cut. "There has already been a major change in both monetary and fiscal policy in Australia. Market and mortgage rates are at very low levels by historical standards and business loan rates are below recent averages, reducing debt servicing burdens considerably," Mr Stevens said.

Robina Rocks On April 2009

THE Robina area has been one of the most active on the Gold Coast, in terms of both new apartment sales and re-sales in the period from 2002 to the end of 2008, according to research just released by Colliers International Research. An in-depth survey of all sales and also the capital appreciation of resale apartments in the overall Robina area showed that it had performed extremely well. One bedroom apartments increased an average of $204,000 in 2003 to $328,000 in 2008," and "Two-bedroom apartments have gone even further from an average of $272,000 in 2003 to $521,000 this year. "Three-bedroom apartments, meantime, have proven to be the best performers with prices rising from $295,000 in 2003 to an average of $626,000 this year." Many purchasers within Robina in the past five or six years had been drawn to the location because it is so central to everything offered on the Gold Coast, but also because of the facilities and infrastructure that had been added within Robina. New infrastructure includes; • $160 million Gold Coast Titans home ground Skilled Park; • The $287 million upgrade to the Robina Hospital; • The Robina Railway Station and the $324 million Robina to Varsity Lakes rail extension; • The $300 million expansion to Robina Town Centre; • The $47 million Mudgeeraba Interchange upgrade; • The council's community facility and public library; • The education facilities • The expanded road network as being significant draw cards for investors and residents. Another reason for Robina's success was that the residential product that had been developed there was largely targeted at 'middle Australia'. "The price range between $400,000 and $600,000 is the most active and it is also the sector that responds most positively to a low interest rate environment so the product within the River walk precinct particularly has been very well received,"

FIRST-home buyers are saving grace March 2009

FIRST-home buyers are the saving grace for an embattled property market. They are jumping into home ownership at record rates, bringing calls for an extension of the First Home Owner Grant which runs out on June 30. Figures from the Australian Bureau of Statistics show the startling growth in that sector of the market as first-time buyers jump at the chance to own their own home. Last October, when the First Home Owner Grant was announced, only 11 people in Queensland took up the offer. In February, this had soared to 2616, a 237-fold increase. That massive jump also ties in with the latest research from the Real Estate Institute of Queensland released at the weekend which shows that first-home buyers have dominated the housing market and sales in the affordable end of the market in the Coast's northern growth corridor had seen the biggest increase.

Affordability March 2009

AUSTRALIA'S central bank chief says housing affordability is improving and that lower interest rates will spur a revival in the building sector. Reserve Bank of Australia (RBA) governor Glenn Stevens told a bi-annual parliamentary hearing on Friday that while home affordability would improve, house values were not in danger. "Our housing sector is not overbuilt - instead there is considerable pent-up demand, and affordability is improving quickly," Mr Stevens told the House of Representatives Economics Committee in Canberra. The RBA chief said recent interest rate cuts would also help the struggling residential building industry as home loans became more popular. "For ordinary people looking in lower-price areas, (lower) interest rates have improved things a lot from the housing affordability point of view," said. "I think you'll see the effects of that on housing finance and housing construction in the next couple of years." Housing Industry Association (HIA) chief executive Chris Lamont said 400 basis points of cuts to the cash interest rate since September, taking it to a current 3.25 per cent, had helped housing affordability. Mr Stevens said most of the drop in house prices was in the higher end of the market, while the overall market had been resilient. "House prices have drifted down but they haven't slumped badly," he said. Standard variable mortgage rates fell below six per cent in February for the first time since the 1960s after the RBA slashed the cash rate to a four-decade low of 3.25 per cent. Mr Lamont said recent rate cuts and federal government stimulus programs had done more to boost the middle-range of the residential housing market, but the gloomy economic environment would continue to hinder the investment sector. The Federal Government's earlier $10.4 billion fiscal stimulus package doubled the first home buyer grant for established dwellings to $14,000, and tripled it to $21,000 for newly-built housing.

Another rates drop Feb 2009

The Reserve Bank of Australia (RBA) has announced today the 3rd of February 2009 that the Official Cash Rate will decrease 100 basis points. Therefore the Official Cash Rate has declined to 3.25%. The Federal Government lead by Kevin Rudd has urged all of the leading banks and financial institutions to pass on this full decrease and to stop their greedy profiteering. The current RBA interest rate is now at its lowest level since 1964, as the Reserve Bank urgently seeks to head off the threat of Australia sliding into recession in 2009. Today’s rate cut follows four consecutive cuts in the last four months of 2008. The RBA has now shaved a massive 4 percentage points off official interest rates since last September. For a family with a $400,000 home loan this equates to a total saving of more than $1,000 a month in repayments, as assuming lenders pass on the cuts in full.

What Land? Jan 2009

The scarcity of residential land that has been blamed for forcing up home prices in southeast Queensland is just a myth, according to a new report. The report reveals there is plenty of land available to meet housing demand for the next 19 years – but most of it is in the hands of major developers. And much of the available land is in areas less desired by homebuilders, who mainly want to live near the coast, according to the report by the Local Government Association of Queensland. Premier Anna Bligh earlier this year called on council to fast-track new developments to improve housing affordability. While the LGAQ report did not find evidence that any developers were deliberately restricting the supply of land to the market to force up prices, it concluded that the accumulation of vast parcels by big companies, particularly during the property speculation boom from 2002 to 2005, was a major factor in price escalation.

Fluoride for our water Jan 2009

Fluoridation of south-east Queensland water supplies began on Monday at a water treatment plant in Molendinar, north of the Gold Coast, but it could take nearly two weeks to flow from the taps. It marks the first step of the government's plan to provide fluoridated water to 90 per cent of the south-east and the remainder of Queensland by 2012. The introduction of fluoridated water should improve the state's dismal dental health record, that shows Queensland kids have 30-40 per cent more tooth decay than children from other states. Queensland Health Minister Stephen Robertson denied reports that the fluoride was contaminated saying the top-quality product came from Belgium, not China as reported, and Queenslanders could rest easy the water would be tested daily.

Interest Rates Drop Again Dec 2008
	The Reserve Bank of Australia (RBA) has announced today 02.12.08 that the Official Cash Rate will decrease by 100 basis points. Therefore the Official Cash Rate has declined to 4.25 %. The next RBA Meeting will be held on the 3rd of February 2009.

Residential building recovery - 2009 Dec 2008

Extended First Home Owner Boost Scheme would help address shortage of rental properties. Residential construction is forecast to be a key support for the Australian economy during 2009, according to leading industry analyst and economic forecaster, BIS Shrapnel. The national number of dwelling starts is forecast to rise by 10 per cent next year, which will be the first calendar year of growth since 2002. BIS Shrapnel believes that if the Federal Government’s recent First Home Owner Boost Scheme is extended until at least December 31, 2009, then in addition to there being more substantial momentum in the recovery in detached house construction, there would also be an improvement in the funding availability for apartment development in the second half of 2009, which would help alleviate the current rental crisis. BIS Shrapnel senior economist, Jason Anderson, says there is likely to be a reduced number of affordable apartments on the market over the next six months. “Given the current difficulties for developers to get finance for medium or high density unit/apartment development, we do not expect them to be in a position to schedule additional construction, even if they do see increased sales to first home buyers,” he says. “The First Home Owner Boost Scheme is scheduled to end on June 30, 2009, and it will be difficult for many projects to resolve financing issues over the next few months.” As a result, BIS Shrapnel expects the impact of the Boost Scheme as it stands will be nearly totally concentrated on new detached houses.

Coast market lull 'will be short-lived' Nov 2008

THE lull being experienced in the Australian property market will be short-lived as investors move to secure property and to take advantage of drop in property prices and interest rates, a Gold Coast property seminar has heard. Speaking last week at Bendigo Bank's Spring Seminar on smart property investing, Robert Sainsbury said he expected the residential market to become more competitive and controlled by buyers who had finance in place and were able to move forward. "Where it becomes a buyer's market, as with any other, property values may fall slightly and a price fluctuation will be driven by those sellers who have a financial need or a strong desire to move on," he said. "The volumes of sales will increase as both first-home buyers and investors take advantage of the value that many of these properties will represent. "Overall, residential property should still be viewed as a strong investment in the current conditions."

Tourism down but still strong Nov 2008

The chief executive officer of the Gold Coast Tourism says the global economic crisis is deterring visitors. Martin Winter has told a tourism forum at Bond University that domestic and day tripper numbers are down and he believes there will be fewer international visitors in the months ahead. He says conferences have been cancelled and fewer people are dining out. "During the April holiday period, visitations to the Gold Coast were down about 10 per cent in accommodation terms, but happily in September this reduced to a 5 per cent reduction in comparison to the same time last year and also business tourism has been heavily affected," he said. "What we are seeing is a reflection across the whole of Australia and the Gold Coast is not suffering as badly as other places." The forecast for Gold Coast Tourism is getting stronger from Australian holiday makers as they divert from over seas travel to enjoy their own back yard.

Down Market? Great Market! Oct 2008

Well we are in a slump there’s no doubt about it, things are slow and confidence is down in some areas but the light at the end of the tunnel is blindingly bright with good times ahead. Our population rate is still strong plus the Queensland Governments relief for first home buyers by removing the stamp duty for properties under $500,000.00 and the expected drop in interest rates in the near future has definitely sparked up a large number of prospective purchases. If you are looking to purchase a property, you are in the driver’s seat and that’s for sure but things aren’t all that bad because if you’re wanting to sell there are buyers out there and all you have to be is realistic with your asking price. “Just remember that you are buying and selling in the same market” so you can replace a property easily.

Interest rates cut by 0.25% Sept 08

The Reserve Bank of Australia “RBA” cut interest rates by 0.25% today, kicking off what is expected to be a prolonged period of rate reductions. Economists had widely expected the decision, although some had predicted the Reserve Bank would move more aggressively and cut rates by 0.5 percent. However, further cuts remain on the cards with several economists calling for three further cuts in the coming year. Analysts at ANZ Bank are tipping that rates will drop to 5.75 percent by mid-2010. Prime Minister Kevin Rudd, speaking in Parliament shortly after the decision, said the cut was good news for home owners. "This interest rate decision is welcome, but it is not a day for celebration. Interest rates took a long time to rise, they will take a long time, a long time to come back down, and the road will be a very uneven one," Nab, Commonwealth Bank, ANZ and Westpac announced they are cutting rates on variable mortgages by 0.25 percent just minutes after the RBA decision was announced.

We have lift off Oct 2008

The Australian Government today announced a First Home Owners Boost to ensure first home buyers will be eligible for grants of up to $21,000. The First Home Owners Boost is a decisive Government initiative to stimulate housing activity and give first home buyers a better chance in the housing market. Under the First Home Owners Boost: First home buyers who purchase established homes will have their grant doubled from $7,000 to $14,000; and First home buyers who purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000. More than 150,000 first home buyers are estimated to benefit from the scheme. The Government’s First Home Owners Boost is part of the Government’s $10.4 billion Economic Security Strategy to strengthen the Australian economy during the global financial crisis. First home buyers will be eligible for the First Home Owners Boost from today (14 October, 2008). All contracts entered into by 30 June, 2009 will be eligible for this new additional assistance. The Government will invest almost $1.5 billion in the housing market through this initiative. All newly-constructed homes will have to at least meet their relevant State and Territory energy efficiency and sustainability standards. This initiative will help strengthen the Australian economy during global financial crisis and help protect Australians during the difficult global economic times that lie ahead. The Government understands that the economy faces the twin challenges of a subdued housing market and housing affordability levels at record lows. That is why the Government is committed to action on both fronts. This measure builds on the Government’s $2.2 billion worth of housing initiatives in the 2008-09 Budget, including: A National Rental Affordability Scheme to build 50,000 new affordable rental properties; A Housing Affordability Fund to reduce the cost of bringing new homes to market; and First Home Saver Accounts to encourage young people to save for a new home. The First Home Owners Boost responds to the housing affordability challenge and will help strengthen residential investment activity in Australia.

No stamp duty rates to help first home buyers Sept 08

First homebuyers in Queensland will find it easier to get into the property market from this week as the State Government abolishes stamp duty on homes up to $500,000 in value today. Queensland Treasurer Andrew Fraser says the change should inject new life into the state's housing market. "There's no doubt that the housing market has taken a bit of a hit from rising interest rates," he said. "There's a lot of anticipation out there about these new stamp duty cuts providing a much welcomed, a much needed, boost into the property sector and that will be welcomed by industry in particular." Mr Fraser says first home buyers in the state may finally be able to consider buying a house "This really provides an affordability window," he said.

$100 Million Airport Terminal - Work Begins Aug 2008

Work has begun on the $100 million Gold Coast Airport terminal redevelopment. Travelers through Gold Coast Airport will notice preliminary tarmac and drainage works with reconstruction of the terminal beginning in July. Gold Coast Airport Chief Operating Officer Paul Donovan said the initial works were being staged to ensure no disruption to airline passenger services and minimal night works for local residents. Stage one of the redevelopment is set to more than double the size of the existing building to 27,000 square metres to cater for forecast passenger growth over the next ten years. A further expansion (stage 2) will begin as demand dictates. "When finished, our terminal will be the first purpose-built facility specifically designed to cater for low cost airlines and their passengers," Mr Donovan said.

Gold Coast Rapid Transit - Coming soon Aug 2008

Gold Coast City Council and the Queensland Government are currently working in partnership on the development of a rapid transit system for Gold Coast City. The Queensland Government has committed $550 million with further financial support for the project likely to be provided by Gold Coast Council and possibly by the private sector. The Gold Coast Rapid Transit will provide a high quality public transport link in two stages from the Gold Coast rail line at either Helensvale or Parkwood to Griffith University and Southport, Surfers Paradise, Broadbeach, and ultimately the Gold Coast Airport and Coolangatta. The Gold Coast Rapid Transit will provide many significant benefits for the Gold Coast including: •Faster travel times between centres on a dedicated corridor avoiding congestion and traffic hazards •Improved reliability through consistent trip times frequent services linking the heart of the city and major destinations like hospitals, shopping centres and universities. •Additional bus services will also operate from the rapid transit corridor to other areas of the city moving more people more efficiently. •The system will carry larger numbers of people than current public transport services are able to •The system will enhance the image of the Gold Coast as a tourist destination and support ongoing activity along the corridor.

Queensland housing market slows July 2008

New figures from the Real Estate Institute of Queensland show the state's residential property market has softened after last year's very strong demand and price growth. The REIQ house price data for the first three months of the year showed sales were down about 28 per cent compared with the same time last year. Prices hit a plateau in most parts of the state, with Brisbane's median house price rising by just 0.1 per cent in the March 2008 quarter to $490,000. REIQ chairman Peter McGrath said housing markets across Australia had been affected by the current uncertain economic climate and Queensland had fared much better than other parts of the country. "This can be attributed to the influx of about 1,200 new residents into the state every week, our healthy economy, low unemployment and surging coal prices," he said. "While price growth is flat across many parts of the state, homeowners should not forget about the increased equity they now have courtesy of the gains that were made last year." Mr McGrath said the situation of not enough supply to meet demand should help the Queensland market in the future. "While demand has certainly eased from the highs of this time last year, there are simply not enough new dwellings being built to meet the future requirements of our growing population." REIQ figures show that the star Brisbane performers in the March 2008 quarter were reasonably priced middle and outer ring suburbs located between seven and 14km from the CBD. Mr McGrath said heavier loan repayments for investors had resulted in upward pressure on rents. "Over the longer term, this will have a positive impact on rental yields and encourage more investors back into the market," he said.

Hospital go-ahead June 2008
	Work on the $1.55 billion Gold Coast University Hospital can begin in September after the State Government finalised the project the Health Minister Stephen Robinson recently confirmed. Southport MP Peter Lawlor said the 750 bed Hospital was on track foe a 2012 opening with 150 people involved in the planning preparing to begin the detailed design phase in September.

Crucial land release June 2008

Home sites for almost 64,000 new Gold Coast residents should be on the market by Christmas after the Bligh Government announced it would intervene to fast track over complicated approvals. A 3000ha site on Beattie Rd near Dream World at Coomera and a 1200ha site at Kopps Rd Helensvale have been declared “Greenfield” sites that can be accelerated to get new properties on the market quickly in the hope of making houses more affordable.

Acute shortage of housing stock May 2008

The continued drop of building approvals could impact on the climb of housing stock shortages. The March building approvals fell for another month and were significantly down over the quarter, hitting their lowest level since May last year. Total building approvals fell by 5.7 per cent in March, with detached house approvals dropping by 6.9 per cent and unit multi-unit approvals by 2.6 per cent. HIA chief economist Harley Dale said the renewed trend decline in building approvals, which began five months ago, was now firmly entrenched. ?The clear message is that the acute shortage of housing stock is going to worsen this year, which highlights the urgency of implementing policies to boost the supply of affordable housing,? Mr Dale said. He said this indication is apparent before seeing the full impact of the interest rates rises over the past nine months. For the March 2008 quarter building approvals were off by 6.6 per cent. Approvals for detached houses fell by 2.6 per cent and multi-unit approvals suffered a hefty 14.8 per cent decline. Building approvals fell over the March 2008 quarter in five of the eight states and territories around Australia.

Master Builders Speak Out May 2008

While Queensland consumers continue to face a decline in new housing affordability, Master Builders applauds the Reserve Bank?s (RBA) decision yesterday to keep rates on hold. The Master Builders December 2007 Quarterly Housing Cost Index reveals that new home affordability continues to decline as household incomes struggle against progressively higher construction and labour costs, rising land prices, government taxes and higher property and rental prices. Master Builders Director Housing Darren Barlow says the RBA?s decision to increase interest rates over the last 12 months in order to soften consumer demand and reduce inflation appears to be working. "There has been a significant reduction in dwelling approvals in Queensland, with new home approvals falling by 15.7% in seasonally adjusted terms during March 2008. "In Queensland housing stock is already mismatched, with underlying demand outstripping supply. "Unfortunately, as a result, this fall in dwelling approvals may further increase the cost of housing, both in terms of rental or home ownership costs, which will in turn negatively impact on housing affordability. "The RBA?s decision to keep interest rates on hold and await further economic indicators is a sensible one that will hopefully take some pressure off home owners who are already struggling. "Government recently added to that struggle, with the implementation of a new payroll tax that is expected to increase the cost of building a new home by a further $3,391 per home." The Master Builders? affordability model is based on the ratio of the total cost of building to average weekly earnings. The model uses the cost of building a single storey, four bedroom brick home with a double garage, formal dining area and family room in Brisbane?s south-east region. "According to the Housing Cost Index, the cost of building a new home has increased over the last 12 months by $17,072, which represents a 6.77 percent increase," says Barlow. "In short, this means that with increasing land, housing and building costs severe pressure is being placed on households and negatively affecting housing affordability in Queensland."

House prices set to rise April 2008

Economic forecaster BIS Shrapnel predicts house prices will rise as much as 40% across the nation in the next five years, because of a growing shortage in housing. The firm?s chief economist Frank Gelber says housing affordability is already at record lows but will go even lower because demand is much higher than supply. Underlying demand is 182,000 new dwellings per year but only 150,000 are being built. NSW has the biggest shortfall, but Victoria is only slightly better. Gelber?s says there will be a national shortfall of 60,000 dwellings by June and 129,000 by mid-2009. ?We need to build more houses,? he says. Rising interest rates are compounding the problem by discouraging new home construction. ?When interest rates stop rising or eventually start to fall, it?s likely there will be a surge in demand for housing that could result in a price explosion,? Gelber says.

Bank rising rates April 2008

The National Australia Bank has lifted its mortgage interest rates again, independent of any move by the Reserve Bank of Australia (RBA). This is the NAB?s third rate rise in less than seven weeks. It gives the bank a standard variable rate of 9.36%, compared with Westpac?s 9.27%. ANZ and St George, however, have the highest rates at 9.37%. This compares with the RBA?s official cash rate of 7.25%. The NAB says its latest rise is justified because of overseas trading conditions which have made it more expensive to borrow money to re-lend it to home buyers.

Gold Coast Water March 2008

Following heavy and consistent rainfall, Hinze Dam has been 100 per cent full during January. Overtopping the passive spillway is the only means for excess water to escape from the dam, as it does not have an operating means of lowering the water level. The $396 million Stage 3 project, which will substantially raise the height of the dam, will incorporate a raised spillway and, while there currently exists no means to quickly release water below the spillway level, the Stage 3 dam will have a lower level water release gate. When Stage 3 is completed in late 2010, it will provide greatly improved flood mitigation in the downstream Nerang River catchments, as well as an increased water supply.

Public Transport upgrade March 2008

Getting around the Gold Coast by bus will soon be even easier for seniors and people with disabilities. From March, Council will begin upgrading bus stops throughout the city to bring them into line with standards which make public transport accessible to people of all ages and abilities. Council has committed some $720,000 to the upgrade of bus stops in selected areas of low, medium and high passenger volumes to best meet the needs of the community. Seniors and people with disabilities will benefit from the upgrades, which will see the installation of tactile markers and improved seating, wheelchair access and wheelchair waiting areas. By making traveling by bus easier for more members of the community, the upgrades also will encourage greater use of public transport.

Stats for the last quarter Feb 2008

The last quarter has seen a record number of projects in the survey which shows the development industry on the Gold Coast and in South East Queensland in general is still performing well across all sectors. This is despite the recent interest rate rises and the election which tend to see buyers holding off. Sales evidence proves that there is still enough confidence in the property market for buyers. Sales have been up in 2007 on previous years which should mean that 2008 should improve dramatically and continue the up-swing until the next major property boom. South East Queensland is still enjoying strong annual population growth with the latest figures pushing it ahead of Newcastle and into the position of Australia?s sixth largest city. Although the Gold Coast has a strong local economy as well as low unemployment housing affordability is still looming as the biggest issue in the marketplace. House and Land packages under $550,000 are being snapped up quickly by investors and owner occupiers and developers have been focusing on more Land releases as a far better option in this climate. The Housing developments have been the most successful this quarter as we see more and more people moving to South East Queensland with money to spend. This leaves them free of interest rate and affordability burdens. The election should see potential buyers slow up which has been proven with traffic significantly down in both open homes and apartment displays. Consumers have historically been cautious around election times however we should see things improve again in the New Year.

Gold Coast Gold Jan 2008

It is yet to sink in for most of the nation that 2008 and a good part of the future of Australia belong to Queensland and in particular the south east corner of the Gold Coast. Twenty years ago, Brisbane hosted Expo and the first signs emerged that this state, known for years as the Cinderella state, was about to have a glass slipper placed on to its foot. Brisbane blossomed, became the sub-tropical fun capital of the north and has not looked back since. Nor has regional Queensland, especially the Gold Coast. Ten years ago, the Gold Coast suffered high unemployment (especially among its youth), its main income stream of tourism was faltering and the housing industry, still dependent on price fluctuations in Sydney, was in the doldrums. Now Queensland and the Gold Coast are a different ball game. We have credibility -- in finance, style, quality of life, political significance and in social activism -- in ways that are a clarion call about the future. The Gold Coast, the fastest growing city in Australia, is on the cusp of monumental change. Its population is likely to be 640,000 within three years, it has become the hub of the nation's cheap airfare tourism and its building boom continues despite a slowdown in other major cities. It has been the fastest growing city in Australia for 25 years in a row and new projects such as the $700 million Hilton Hotel and the $250 million redevelopment of the Robina Town Centre show that the pace of development isn't about to slow. The good news for the Gold Coast doesn't stop there. Theme parks continue to grow, the city's national sporting franchises -- in rugby league, basketball, soccer and Australian rules -- are either steaming ahead or about to be launched, plans for a new Gold Coast hospital are in the pipeline, and development of educational facilities in the city is booming. But the real promise for the New Year lies in Queensland finally having a prime minister. In keeping with the shift of population, intellectual property and business north from Sydney and Melbourne to southeast Queensland, political power in the form of Kevin Rudd and Treasurer Wayne Swan holds the prospect of a new deal for the Sunshine State. More important than the infrastructure favors he may bestow on Queensland, Mr. Rudd brings a north-of-the-Tweed perspective to the nation's politics. For the next three years at least, Queensland politicians will not have to gauge the opinion of the right wing of the NSW Labor or Liberal parties before speaking out on policy. And for the first time since 1945 -- when Frank Forde temporarily became prime minister -- Queensland's views actually matter. Mr. Rudd's realignment of national politics is likely to greatly change the way in which southerners, commercially at least, view the former Wild North. This year also hold great promise for solving some of the problems that have been niggling Gold Coasters: unemployment, the declining supply of water, the challenge of climate change and power shortages. A combination of the resources boom, action on the southeast Queensland water grid, and Mr. Rudd's forthright policy on the reduction of greenhouse gases, heads us in the right direction. This city continues to be the premier place for good living in Australia. There is no reason why 2008 should not be even better than 2007.

Interest Rates Dec 2007

THE Reserve Bank is struggling to keep runaway spending within the economy's capacity, prompting forecasts of another official interest rate rise within the next three months. Interest rates are at their highest since July 1996 and the average standard variable mortgage is now at 8.57 per cent. A rise in February 2008 which is after the next set of inflation numbers is almost a certainty and the widening rate differential between Australia and the US sent our dollar soaring to heights of US93.74c which is another 23-year high. Macquarie Bank senior economist Brian Redican said the higher interest rates - now in restrictive policy territory - were not slowing the economy as much as they did in the past. 7 Nov. 2007. +0.25 = 6.75 8 Aug. 2007. +0.25 = 6.50 8 Nov. 2006. +0.25 = 6.25 2 Aug. 2006. +0.25 = 6.00 3 May. 2006. +0.25 = 5.75

Gold Coast WATER Dec 2007

Recent State Government approval of the Hinze Dam Stage 3 is another watershed in the proposed $395 million project?s progress. The Coordinator-General has completed the dam?s environmental impact statement (EIS) process and approvals report, marking another vital step towards boosting the city?s water supply and ensuring future flood mitigation. Council now is anticipating approval from the Commonwealth Department of Environment and Water, which would allow the project to proceed. The Federal Government?s green light, before the end of the year, would mean the dual benefits of flood mitigation and increased dam capacity could be realised by late 2010. The project has been subject to stringent environmental approvals and thorough community consultation.

Whale of a time Nov 2007

GOLD Coast whale watchers have been treated to a record number of whale sightings this season, renewing calls for urgent regulation of the industry. Southern Cross University whale research assistant professor Peter Harrison said an estimated 9000 whales were expected to pass the Gold Coast this year - an increase of 1500 on the past year. While it's great for whale enthusiasts around the region to experience such big numbers, marketing manager of Spirit of Gold Coast Whale Watching Wayne Marsh said it highlighted the need for licensing regulation.

Land Shortage Nov 2007

INCREASED house prices in Queensland and the Gold Coast are being driven by delays in government approval processes, according to the development industry's peak body. Urban Development Institute of Australia (Queensland) president Brent Hailey said a shortage of land because of governmental delays was contributing to rising prices. Mr. Hailey congratulated Queensland Premier Anna Bligh for setting up a new planning ministry but said more needed to be done to speed up the provision of land throughout the state. ``The writing is clearly on the wall,'' said Mr. Hailey. ``We are now in a major under-supply situation as evidenced by the recent BIS Shrapnel report, which indicated that we are likely to see another 40 per cent increase in house and land prices in Queensland in the next three years.

Housing Finance - ABS Oct 2007

? Total value of dwelling finance commitments excluding alterations and additions increased by 0.4%. ? The value of owner occupied housing commitments increased by 0.2%, ? While the value of investment housing commitments increased by 0.7%. House and Land investment sales and growth has remained firm with continuing strong enquiry resulting in higher demand in the south east corner of Queensland. Rental supply is almost meeting the demand but only just, meaning more investment homes will need to be built at a rapid rate to quench the need of families migrating here.

Indy Carnival Oct 2007

GOLD Coast Indy is the premier motor sports event in Queensland attracting crowds of more than 300,000 over the four-day event. The Champ cars are the front-line speed kings on the tight street circuit but not far behind them is the brute muscle of the V8 Super cars along with a bevy of support classes. The Gold Coast Indy is renowned worldwide as not just a motor racing event, rather a glamorous and fun, week-long party set on one of Australia's best locations. The off track events add much of the colour and noise to this powerful atmosphere that makes the event unique.

REIQ Report Sept 2007
	Good quarterly results for Queensland were recorded according to the Real Estate Institute of Queensland [REIQ] research, Queensland's property market is performing well, how ever the continued strength is making it extremely difficult for first home buyers, especially in southeast Queensland where demand is very strong for House and Land acquisitions.

Housing Finance ? ABS Sept 2007
	According to the latest figures from the Australian Bureau of Statistics [ABS] Total value of dwelling finance commitments excluding alterations and additions decreased 7.4%. Owner occupied housing commitments decreased 7.7%, and Investment Housing commitments decreased 6.8%

Rents are Up Aug 2007

The rise in housing this quarter was mainly due to increases in both rents (+1.6%) and house purchase (+1.0%). This is the largest quarterly rise in rents since September quarter 1989, when the rise was 2.1%. Average rents rose in South East Queensland (+2.2%) Over the twelve months to June quarter 2007, the housing group rose 3.6%. This rise was mainly attributable to rents (+5.2%), house purchase (+2.7%), and property rates and charges (+5.6%). Annually, housing increases were led in part by rises in South East Queensland (+5.1%).

HOUSING FINANCE COMMITMENTS Aug 2007

The number of owner occupied housing commitments in trend estimate terms increased by 13% to 15,600 in May 2007 compared with May 2006. The trend estimate of the total value of housing finance commitments for owner occupation in Queensland has risen by 21% to $3,632 million in the 12 months to May 2007. Housing Finance Commitments (Owner Occupation) Trend - Queensland Since May 1997, the average home loan commitment for owner occupied dwellings in Queensland has more than doubled from $99,100 to $235,200. The commitment for first home buyers ($240,000) was slightly higher than for non-first home buyers ($234,200).

Housing Finance - ABS July 2007

The Australian Bureau of Statistics - ABS have just released these latest figures. ? The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased 2.7% in May 2007 ? The value of owner occupied housing commitments increased by 1.3%, ? The total value of investment housing commitments (seasonally adjusted) increased by 8.9% (up $567m) in May 2007 ? Construction of dwellings for rent or resale (up $166m, 52.2%) ? Purchase of dwellings by others for rent or resale (up $107m, 18.1%).

Here we go again July 2007

DEMAND for residential investment property is set to strengthen as seasoned investors who may have quit the market to take advantage of the superannuation contribution incentive are keen to return, a survey shows. Wizard Home Loans says the number of Australians planning to buy residential investment property in the next 12 months jumped by 13 per cent to 878,000 in the March quarter, up from 779,000 in the December quarter. The number of intending residential investment property buyers in Queensland rose by 32 per cent to 208,000 during the March quarter, up from 158,000 in the three months to December. Wizard said this was almost double the level of 18 months ago after a series of increases.

Constructive Out Look June 2007

A great majority of industry players anticipate increasing work for the construction industry over the next 12 months. The civil and resource sector took over first place as the segment most likely to contribute and grow in the construction industry over the next 12 months, taking over from the aged care sector, while expectations for office and health sectors also remains very high. The continued growth within the housing sector in Queensland is gaining momentum due to continued high yields and healthy returns for investors with property portfolios in brand new properties with the obvious tax benefits and advantages.

Queensland Powers On May 2007

Housing affordability has hit a record low, with the latest HIA/Commonwealth Bank Housing Affordability Index falling to its lowest level since it was established in 1984. House prices are still strong in South East Queensland which is driven mainly by purchasers from New South Wales and Victoria escaping the southern regions in search of a better life style in the sunny north. The rental market is also on the rise which is very good news for the astute property investors who are reaping the benefits of high returns particularly in the housing sector. One of the main reasons for the strength within the rental sector is simple, there are greater opportunities in Queensland for young families to rent a new home in a good area and enjoy a relaxed life style while still getting ahead, so the rental market is showing all the signs of maintaining strong growth in the near future due to steady migration levels. The population growth to South East Queensland has slowed down to approximately 1000 people per month but this is still a strong influx and there is no immediate end in sight.

Investment mortgages are king April 2007
	A record one in three new mortgages were sold to property investors in March 2007 as opposed to owner occupiers, according to figures published today by mortgage broker AFG. The positive growth within the investment sector is predominantly found in house and land purchasing and is due to rising rents and strong demand from the rental sector wanting house and land instead of apartments.

Overseas Arrivals and Departures - ABS April 2007
	Short-term visitor arrivals are currently 4.5% higher than when the series last surveyed in July 2006 and 2.4% higher than in February 2006. In trend terms, short-term resident departures from Australia in February 2007 were marginally lower than in January 2007 and short-term resident departures are currently 6.9% higher than in February 2006.

Gold Coast Airport March 2007

Gold Coast Airport has hit an all-time high for the number of passengers handled through the airport in one month, welcoming 352,554 visitors in January 2007. More than 87 per cent of all seats to the Gold Coast provided by international and domestic carriers in January were occupied. To help satisfy this growing demand for the destination, Gold Coast Airport are seeking support from the airlines and tourism industry to increase capacity into the airport. Gold Coast Airport Chief Operating Officer Paul Donovan confirmed visitors entering through Gold Coast Airport were making a significant impact on the economic health of the region.

HIA & ABS Reports March 2007

HIA's ?Housing Industry Association? New Home Sales figures show that the sale of new homes and units among Australia's largest builders and developers has increased by 5.8 % in January to 7963 dwellings. ABS ?Australian Bureau of Statistics? report showed the trend estimate for building work done rose 1.5% in the December quarter 2006. Residential building rose 1.3% and non-residential rose 1.6%. Engineering work done rose 1.2% whilst total construction work done rose 1.4% in the latest quarter.

Another big move Feb 2007

Property development company CP1 Limited and joint venture partner the Raptis Group, have formed a special purpose vehicle, CIRA International Pty Ltd, to acquire the site of the Gold Coast International Hotel and northern adjacent land for $70 million. This is a bold and confident move showing the belief in Gold Coast?s property growth and sustainability which has a long way to go and plenty of room to move.

Ups and Downs Feb 2007

The up side for us in South East Queensland is that the residential market has commenced 2007 at a strong pace, continuing the increased level of activity which was witnessed throughout the latter part of 2006 and it doesn?t look like taking the back seat in the near future. But the down side is that elsewhere across the country the ?New Home? building industry has felt the sting of three rate rises within seven months, according to the HIA ?Housing Industry Association? with approvals falling in every state except for Queensland.

Higher rent return on the way Jan 2007

Letting agents are already reporting increased demand for rental accommodation on the back of the recent two half-percentage-point interest rate increases, which could see the market revert back to the traditional 10% year rental escalations sooner rather than later. Few buy-to-let investors have been able to pass the standard 10% rental increases on to tenants when leases came up for renewal, as an over supply of rental properties kept a tight lid on rental growth. However, the fortunes of buy-to-let investors are likely to change for the better over the next few months as affordability issues force potential homeowners to put buying plans on hold.

Strongest growth in Australia Jan 2007
	The Gold Coast?s population now stands at 526,300 according to the latest Midwood Report and it is expected to surge past 600,000 by 2010. The Midwood Report predicts the median age of Gold Coasters to rise from 37 years to 44 years by 2026. The 60-plus age bracket makes up 22% of the current population, belying beliefs that the city is a haven for retirees.

Housing Affordability Crisis Dec 2006

Australia's housing affordability crisis is set to worsen if steps are taken to reduce the attractiveness of tax concessions on investment properties, according to property research consultancy Matusik Property Insights. Matusik Property Insights' latest research results indicate that housing affordability will diminish further and rents will continue to increase if investors are denied attractive concessions such as negative gearing. Matusik Property Insights' property analyst Michael Matusik said that changes to negative gearing would hurt renters as investors would shift their money into other assets.

Construction remains flat Dec 2006

Figures released today show that residential construction failed to grow at all in the September quarter. Low affordability stifled any hope of a sustained recovery for home building, according to the Housing Industry Association. The figures show a flat result through the September quarter and 4.2% less work done than in the September quarter last year. The value of new housing eased by 0.4% to $7.8 billion. For alterations and additions, which captures around 25% of the total renovations market, work done increased by 2% to $1.5 billion. The HIA said that stark differences remained across states with no real strength apparent outside resource-rich areas. HIA's Chief Economist, Mr Harley Dale, said that while a sharp fall in residential activity would be avoided, the hopes of a sustained recovery over the remainder of 2006/07 were slim.

.25% Interest Rate Rise Nov 2006

The Reserve Bank's decision today to raise official interest rates for the third time in six months has been criticised by the Housing Industry Association, which claims it will only inflict more pain on Australia's housing industry. Since the start of the year, homeowners with a mortgage of $250,000 are required to find an extra $122 per month to meet minimum monthly payments. HIA's Executive Director, Housing and Economics, Simon Tennent, said that while there is no denying the inflationary risks, monetary policy will prove to be the bluntest of instruments when it comes to slowing Australia's two-speed economy.

ABS Housing Report Oct 2006

The [ABS] Australian Bureau of Statistics report show a lack of new housing and tight rental markets have put a floor under Australian house prices, according to the Housing Industry Association (HIA). Following on from recent findings showing housing affordability declining over the June quarter, today's official numbers from the ABS confirm that prices climbed by 3.1% across Australia to an average annual growth rate of 6.4% ? more than double the rate of inflation over the same period. According to the HIA, the long-held relationship between higher interest rates and falling house prices is likely to be somewhat disconnected for the rest of the decade. HIA's Executive Director of Housing and Economics, Mr. Simon Tennent, said that higher rates will clearly reign in discretionary spending and have already taken the wind out of the sales for the building industry. However, with an estimated shortage of some 25,000 dwellings nationwide, demand pressures will keep prices high. "The challenge of putting an affordable product on the ground remains as difficult as ever and today's figures again confirm that the cost of building a new home has barely been higher than inflation ? up 3.2% on last year while land prices have continued to ratchet up, rising 14% over the same period," Mr. Tennent said. "As the debate about declining affordability rages, it is crucial that the pressure is lifted off the housing sector by increasing the supply of affordable housing and attracting private rental investment. Lowering the cost of land and easing the tax and regulatory burden on Australia?s building community is an obvious and immediate step in the right direction," he said. House prices rose in all cities: Perth (+11.9%), Darwin (+3.6%), Canberra (+2.6%), Adelaide (+2.3%), Brisbane (+2.1%), Melbourne (+2.0%), Hobart (+2.0%) and Sydney (+1.4%). For brand new homes (excluding the land cost) prices rose in all cities, up 4.1% in Darwin, up 3.9% in Perth, up 1.5% in Brisbane, up 0.9% in Canberra and Hobart, up 0.8% in Adelaide, up 0.6% in Melbourne and up 0.5% in Sydney.

Construction Done, Australia Sept 2006

The seasonally adjusted estimate of building work done rose 3.9% in the June quarter 2006, to $14,973.8m. Residential building rose 2.7% to $9,140.2m. Non-residential building rose 5.8% to $5,833.5m. Total construction work done rose 3.6% to $25,582.7m in the latest quarter. Turnover for the Australian Retail and Hospitality/Services sector increased by 5.2% in July 2006 compared with July 2005. Chains and other large retailers increased by 6.9%, while 'smaller' retailers increased by 2.9% Figures for work completed through to mid year showed a moderate improvement in residential activity, with total building increasing by 2.7%. The value of new housing completed rose by 2.4% to $7.7 billion. For the alterations and additions market, work done increased by 4.9% to $1.37 billion

Commercial Strength Sept 2006

Property and funds management group Cromwell Corporation Limited plans to develop a new $400 million office and retail precinct in Bundall on the Gold Coast over the next five to seven years. The master-planned project is being undertaken by the Corporate Centre Development Alliance (CCDA), which comprises Cromwell, PacLib Group Pty Ltd and property identity Dan McVay. The precinct will comprise up to five office and retail buildings and will include additional amenities such as restaurants, retail outlets, and health and spa facilities. The developed property is expected to be retained by the Cromwell Diversified Property Trust. The property was acquired by the Cromwell Diversified Property Trust in December 2005 for $52.86 million, in a joint arrangement with Cromwell, the McVay family and Ray White Invest. Recently Ray White Invest sold its stake in the project to PacLib which is a well known NSW development firm.

Interest Rate Rise Aug 2006

The Reserve Bank of Australia [RBA] has raised the official interest rate by 0.25%, to 6% citing strong economic activity and the need to contain inflation. The central bank said inflation pressures have increased against the background of strong international conditions. "Given these circumstances, the board judged that an increase in the cash rate was warranted in order to contain inflation in the medium term," the RBA said.

10,000 Athletes For City Aug 2006

More than 10,000 competitors will converge on the Gold Coast for the 2006 Pan Pacific Masters Games in three months' time, strengthening the city's bid to become Australia's events capital. The international competition - following on from the hugely successful Gold Coast Airport Marathon - will draw athletes from as far a field as Kazakhstan, for a program diverse enough to offer motocross and basketball. The 2002 decision to add 'Pan Pacific' to the event's name should result in Japan being the second-largest international representation, behind New Zealand.

Australia the Transparent Country July 2006

Australia remains the most transparent country in the world in terms of real estate investment, while Japan and India have improved transparency considerably over the last two years, according to Jones Lang LaSalle's 2006 Real Estate Transparency Index. Australia set the world standard for transparent and sophisticated real estate markets and over the last two years we have seen significant improvements in many other parts of the globe. Overall 14 countries of the 56 have moved up a full tier and none have moved down," says Jones Lang LaSalle's Head of Research and Consulting, Kathryn Matthews, "We are seeing more rapid improvement due to higher securitisation levels and higher cross-border flows around the globe with Australia way ahead of the rest"

Midwood reports on Housing June 2006

Housing prices have rebounded giving credence to suggestions that the housing sector has improved again with earlier then expected further growth. Residential rents continue to rise, up by 8 per cent with strong demand in all areas due to the population growth. The Gold Coast population now stands at approximately 517,200 The report has shown the housing market has and will continue to out strip the apartment sector with flying colours.

Midwood reports on High Rise June 2006
	After a strong February quarter for Gold Coast apartment sales movement has eased but has still reported a total of 124 sales during May. At the end of the quarter a total of 1053 high rise apartments remain for sale which equates to approximately two years supply.

A Big Future May 2006

Sir Peter Hall a Professor of Planning at University College, London, has predicted thriving growth in business areas just west of Surfers Paradise?s coastal strip on the Gold Coast to Brisbane corridor with suburbs such as Coomera leading the way. This is a clear and obvious progression mainly due to transport and logistics with the main railway and freeway locations dominating major growth Sir Peter said at a presentation to Gold Coast Council Planning Staff this month.

Interest Rates Rise May 2006

The Reserve Bank of Australia has finally raised the official interest rate by 25 basis points, to 5.75 per cent. International developments are continuing to provide stimulus to growth in Australia. The world economy is growing at an above-average pace for the fourth successive year and, significantly, forecasts have recently been revised upwards. Commodity prices have been increasing strongly for some time, and they have risen further in the year to date. This suggests a strengthening in the outlook for Australia's export earnings, with consequent expansionary effects on incomes and spending. In Australia, domestic spending has been growing at a solid pace recently and prevailing conditions suggest that this is likely to continue. High profitability and rising share prices are indicative of a favourable business environment in which investment growth is likely to remain strong. There are also signs that the dampening effects of household balance-sheet adjustment on consumer spending are starting to wane.

City Green Heart project April 2006

Gold Coast City Council is planning for one of the most innovative and largest recreational areas ever seen in the city. The Green Heart investigation area currently encompasses about 1,800 hectares of mixed bush and grazing land and development, including golf courses. Council recognises the enormous potential for the area to provide significant open space and recreational opportunities for the existing and growing Gold Coast population.

Gold Coast beaches coped well April 2006

Gold Coast beaches coped well with swells of up to 10.5m over the first weekend of March. There was scarping of between 0.5m and 5m along beaches and about 300m of beach fencing was lost. This was quite minor damage for such a major swells and demonstrates the good health of our beaches. Dune care and beach nourishment activities increase the resilience of our beaches and their capacity to cope with swell events.

Positive signs for Gold Coast Airport March 2006
	International carriers such as Singapore and Emirates Airlines are being encouraged to set up direct flights from the Gold Coast to Los Angeles, Singapore and beyond. The Gold Coast Airport runway extension is due for completion in 2008 paving the way for bigger aircraft such as the popular Boeing B-777 which carries up to 380 passengers.

Over 240 people per week can?t be wrong Feb 2006
	New figures just released by the Australia Bureau of Statistics [ABS] revealed that more then 240 people are moving to the Gold Coast every week, only Brisbane has recorded a greater population boom beating every other capital city. Queensland?s total population was recorded to have grown by a staggering 75,900 in the last financial year alone.

Prestige Apartments on Record High Feb 2006

New figures have shown a spending spree on luxury beach front apartments on the Gold Coast and there is no end in site. The 15 level ?Jade? development has recorded prices from $4,500,000.00 to $5,900,000.00 but the most exciting prestige development ever released in Australia is without a doubt the 77 level ?Soul? residential tower on the beachfront in the heart of Surfers Paradise with apartment prices ranging from $1,600,000.00 all the way up to the Super Penthouse at $16,850,000.00

First Home Buyers Move In Jan 2006

There are more Australians taking the step and buying their first home than have done so in the past two years, assisted by high employment levels and relatively stable mortgage finance rates. The latest Australian Bureau of Statistics figures on housing finance during November 2005 show that first home buyers now account for 18.3 per cent of all housing loans. This reflects a steady increase over the past year in first home buyers as a percentage of the total home finance market and is the highest level reached in approximately two years. Queensland had the highest monthly increase in the number of home loans for owner occupied housing (up by 2 per cent), followed by New South Wales (up 1.2 per cent), Victoria (up 0.2 per cent), Tasmania (up 1.4 per cent), South Australia (up 0.2 per cent), Australian Capital Territory (up 0.6 per cent) and Northern Territory (up 0.6 per cent). A decrease was recorded in Western Australia (down by 0.4 per cent).

Australian Economy Remains Steady Jan 2006

Growth in the Australian economy is likely to remain steady in the near future, according to the University of Melbourne's Associate Professor Mark Crosby, who spoke last month at the Melbourne Institute Economics Forum. In discussing the latest issue of the Mercer-Melbourne Institute Quarterly Bulletin of Economic Trends (QBET), Dr. Crosby said that key economic indicators released in recent months continue to show solid growth, despite some signs of weakening economic activity and emerging inflationary pressures. Dr. Crosby said that over the previous two months oil prices had fallen and the forecast was for inflation to remain comfortably within the RBA's target range over the next twelve months.

Australia?s Resilient Market Dec 2005

Despite renewed doom and gloom predictions of house prices crashing, Australia's property market remains resilient. Figures released this week for the September 2005 quarter show that established house prices across the eight capital cities fell by a very mild 1 per cent over the quarter, and remained 1 per cent higher than 12 months earlier. For new homes (minus land), prices edged up 0.8 per cent over the quarter to be 5.3 per cent higher than a year earlier. Building industry body, HIA, said this week that not only do the updated figures firmly contradict predictions of a house price crash, but they provide further confirmation that even after a record period of building and renovating, demand for housing remains solid. "Interest rates are low, as are unemployment rates, rental markets are tight, and overseas migration is historically high. These factors are keeping a floor under house prices", said HIA's Senior Economist Harley Dale this week. "There has been nothing to trigger a substantial fall in house prices since the market peaked. More importantly, in the absence of significant interest rate rises which would lead to a marked deterioration in labour market conditions, one has to question where the trigger for such a correction would come from going forward", he added.

Kiwis are the winners Nov 2005
	The largest foreign buyer of residential property in Queensland for 2004/2005 were the New Zealanders with $81,580,411 The total foreign investment in residential Queensland property for 2004/2005 was $353,994,108 69% of transactions were for investment purposes and 31% were for owner occupation.

CPI & Interest Rates Nov 2005

As was widely anticipated, the Reserve Bank this week maintained its neutral position on interest rates, even though inflation rose in the September quarter and energy prices remain high. Inflation figures released this week for the September quarter showed a 0.9 per cent increase in headline CPI, taking the annual rate from 2.5 per cent to 3.0 per cent, at the top of but not above the RBA's target band. Annual growth for CPI ex volatile items, the more relevant of the two measures, inched up from 2.3 per cent to 2.4 per cent and hence remained well below the top of the target band.

Refinancing Oct 2005

More than fifty per cent of people with a mortgage have renegotiated their home loan in the past five years and the main reason for doing so is to fund a home renovation or extension, according to the results of a recent survey. "The number of renovations and extensions is increasing - aided by stable interest rates - and our research shows this is the largest single reason for refinancing", chief executive officer of the Mortgage Industry Association of Australia, Phil Naylor, said last week. The MIAA/Bank West, Home Finance Survey showed that the second most likely reason for people to refinance is to gain the advantage of a lower or better interest rate (13 per cent), followed by the need to fund an investment property (11 per cent), or the need for extra money (10 per cent). Other reasons were to fund a new home, the need for a different financing structure, or to consolidate loans. Refinancing to purchase Brand New Investment Homes to be utilised for Tax Benefits and the Added Advantages connected is obviously still the wiser move with more achievable long term goals at hand.

Mortgage comes first Sept 2005

Australian home owners would rather take ten years off their mortgage than off their looks according to a survey by the HSBC bank. The survey of 500 borrowers found 80% would prefer to reduce their mortgages with 75% of them putting it ahead of looking younger. But paying off their mortgages early is unlikely to happen if they don?t take action to pay off their loan said HSBC head of mortgages Steve Martinelli. The good news is that property owners don?t have to do much to improve the health of their home loan with far greater products available these days instead of restricted loans which we have become accustomed to in the past.

Building Costs Still Rising Sept 2005

Building costs are expected to continue rising in the near future but at a slower rate, according to a recent survey. The June quarter Westpac/AIQS BRIX survey indicated that Australia's Quantity Surveyors expect costs to continue rising at a rate of 6 per cent over the next 12 months. This is down from the average cost change of 7.6 per cent over the 12 months from June 2004 to June 2005 and well below the 8.9 per cent growth reported for the March 2004 to March 2005 year. The surveyors expect building costs to continue rising at around 6 per cent over the next 12 months, slightly less than they forecast in the March survey. Western Australia is expecting the largest annual cost change of the major States at 8.6 per cent and NSW the lowest at around 4.5 per cent. On a trade by trade basis, structural steel has again experienced the largest change in cost over the quarter at 3.0 per cent. However, the rate of growth has slowed from 4.3 per cent in the December quarter 2004 and 4.0 per cent in the March 2005 survey. Paving and plastering had the smallest cost changes over the quarter at 0.1 per cent. Of the major states, NSW had the largest cost increase in any one trade with the cost of structural steel increasing by 7.2 per cent. NSW did however see the cost of plastering drop by 0.8 per cent and South Australia saw the cost of brickwork fall by 0.8 per cent.

Airport Breaks all Records Aug 2005

Gold Coast Airport Limited has achieved a history-making start to the new financial year recording its highest ever month throughout both domestic and international passengers. Gold Coast Airport Limited (GCAL) Managing Director Dennis Cant said total passenger numbers for the month of July 2005 was 314,157. ?Total passengers handled for July surpassed the previous monthly record set in January this year, which was 308,576,? Mr Chant said. ?The July 2005 figures also show an overall increase of 21.1 per cent on July 2004, and an outstanding 51.5 per cent increase in international passenger numbers for the same time last year.?

Regional Not City Aug 2005

Foreign Investors are being encouraged into areas such as the Gold Coast by a new visa requirement that allows them to pay less to invest in regional areas than in the major cities. Prospective foreign investing in areas of the Gold Coast such as the Gold Coast to Brisbane corridor present well for investors under this category as they are ?affordable areas with growth potential?. Purchasers were often forced to buy in rural residential locations due to pricing levels. ?This is mirrored by the Queensland Government?s new southeast Queensland plan, which also focuses on development outside the main established urban areas,? ?For the past 28 years the Gold Coast has retained its crown as the nation?s capital for population growth and southeast Queensland will continue to remain on the radar for national and international buyers as we have the favoured lifestyle and climate and the state?s economy is very strong.?

Solid Dwelling Approvals July 2005

Reports this week of a solid bounce in dwelling approvals are welcome news for Australia's new home builders, with an increase of nearly 40 per cent in Queensland more than offsetting a disappointing month in New South Wales. Australia's peak building industry body, HIA, said that while the NSW situation continues to bow under the weight of high land prices and a BASIX-induced distortion, for the wider industry there is clearly a healthy level of demand. HIA's Chief Economist, Simon Tennent, said that the positive result is confirmation that the industry has not been overbuilding and that demand is there as long as the price is right. "For New South Wales however, the market continues to be dominated by trade-up buyers who currently are having trouble selling their existing homes," he added. "It's a simple equation whereby if established sales volumes are down by 25 per cent and first home buyers continue to be under-represented, the overall falls in the new home market will be somewhat harder than in other states." "Fortunately for NSW, there have been tentative signs of a slowing in population outflow to other states, and some slight improvement in the land supply situation." "For the rest of Australia, forecast improvements in housing affordability from stable prices, stable interest rates, and rising household incomes will ensure that this slowdown doesn't reach the depths of previous downturns," Mr. Tennent said. On a state by state basis, Queensland recorded the biggest increase in dwelling approvals over the month, up 39.4 per cent. They were followed by Tasmania, up 8.9 per cent, Western Australia, up 3.3 per cent, and Victoria, up 1.2 per cent. Falls were recorded in New South Wales, down 22.9 per cent and South Australia, down 3.9 per cent.

Success for Convention Centre June 2005

The Gold Coast Convention and Exhibition Centre turns 1 on June 29 To celebrate its 1st birthday, the Gold Coast Convention and Exhibition Centre (GCCEC) is offering some great birthday incentives during the months of May, June and July. In the first year of operation the GCCEC has:  Injected over $160 million into the local economy  Played host to some 251,638 delegates  Held 200 events  Won the Meeting and Event Australia National Event of the Year Award 2004

Queensland Export on the Move June 2005

Queensland continues to power with overseas sales rising by almost $5 billion in a year. In the twelve months to the end of March, Queensland exports rose by $4.8 billion to a record $24.1 billion. The value of merchandise exports to Japan in the last three months rose strongly (up 31.3 per cent to $1.5 billion), driven by a 52.8 per cent increase in the value of coal sales to Japan. North-East Asia (excluding Japan) was up 35 per cent to $1.4 billion and South-East Asia rose by 9.8 per cent to $366 million. Exports to the United Kingdom rose 35.3 per cent to $173 million and the European Union also increased by and 20.0 per cent to $573 million. Exports to New Zealand were up 13.3 per cent to $199 million and sales to the United States rose by 8.1 per cent to $219 million.

Recent Bank Survey May 2005

According to a recent bank survey, house prices Australia-wide moved very little in the March quarter for the fourth consecutive quarter in which prices generally remained unchanged. The Commonwealth Bank Property Value Guide, which uses information obtained during the Bank's home loan application process, showed prices moved very little in the March quarter, with Queensland and Western Australia the only two states to record an increase in prices. In contrast, the Australian Capital Territory experienced the nations only easing in house prices. Commonwealth Bank executive general manager retail products, Geoff Austin, said national median house prices were unaffected by the rate rise or continued interest rate speculation, adding "The March 2005 quarter is the fourth consecutive quarter where national median house prices have remained stable". Mr. Austin said house prices in Queensland rose 0.7 per cent and by 5.7 per cent in Western Australia, while ACT prices dropped 2.5 per cent. "The rest of Australia remained unchanged from the December 2004 quarter confirming the housing market had reached a plateau", he said. The guide also showed median unit prices rose across the country, with the Northern Territory and WA the only exceptions.

??Bricks & Mortar?? still our passion May 2005

??Bricks & Mortar?? still our passion We are quite sure that anyone viewing our site and seriously looking to purchase is completely aware that the Residential market has softened slightly from the dramatic highs of ?03/?04. From our point of view this is healthy as today?s conditions provide all parties with a more conventional negotiation process. What does surprise us is that many property investors are missing out on substantial savings available to them under the existing legislated Tax Depreciation laws. Put simply, you are able to claim depreciation on fixtures & fittings and several other items on a building of any age, (Division 40 Allowance). Buildings constructed since 1985 are entitled to more substantial allowances under Division 43. The benefit of these allowances is passed down with the sale of the property, as the ATO recognise that with each sale items have a new value to the new owner. Importantly, if you have owned a property for some time and not made a claim a retrospective Tax Depreciation Schedule can be prepared to adjust your tax return for the previous 5 years. At GCPN we are helping our clients be vigilant toward the saving of their Tax Dollar.

Positive house prices April 2005

A financial analyst is predicting another housing boom before the end of the decade. The managing director of the Midwood Investment Report, Bill Morrison, says reduced supply and increasing demand on the Gold Coast will cause prices to increase steadily over the next few years. Mr. Morrison says there is no evidence that the established seven year cycle in property prices will change. "The overall long-term average is about 8 percent per annum so I expect we'll get about an 8 percent increase for the next three or four years. We'll get a 50 percent increase in the one year, around 2008-09 like we did last time."

Rain Relief April 2005

Heavy showers have deposited up to 40 millimetres of rain in parts of the Gold Coast during the past 24 hours, but falls have been significantly smaller around the Hinze Dam. Senior weather forecaster Gavin Holcombe says the wet weather is likely to continue for the rest of the week. "Biggera Creek's had 40 millimetres, Monterey Keys has had 40mm, the air sea rescue station's had 34mm, but once you go inland a bit further falls are nowhere near as high - Mount Nimmel's only had 11mm, Little Nerang Dam's only had 8mm, so you can see there hasn't been a great deal around as you go further inland," he said. Hinze Dam was about 75 per cent full yesterday and the city's water consumption was about five million litres above the daily target of 190 megalitres.

Strong Economic Growth March 2005

Queensland?s strong economic growth is set to be maintained following a sharp upgrade of the budget surplus forecast to $1.1 billion providing Premier Peter Beattie with funds for an extensive infrastructure program to cope with the state?s rapid population growth. Treasurer Terry Mackenroth has increased his surplus forecast by more than $450 million since the last state budget largely thanks to the resilient housing market. House prices have almost doubled in the past 5 years with a very strong forecast predicted for the next two years ahead.

Positive Forecast 2005 - 2006 March 2005

Australia's economic prospect - forecast by the Organisation for Economic Co-Operation and Development (OECD) - is 3.8% for 2005 and 3.6% for 2006. These figures are 0.5% - 0.7% p.a. higher than the average OECD countries' growth rates for 2005 - 2006. The International Monetary Fund (IMF) praises Australia for its strong economic performance, six years of budget surpluses, falling public debt, low inflation, high and rising productivity and a dynamic job market. Australia is strongly favoured as a recipient of foreign direct investment (FDI), according to global consulting firm, A T Kearney, in its latest FDI Confidence Index. Australia jumped from 19th place in 2003 to 7th most attractive market worldwide in 2004. This reflects the increasing confidence foreign investors have in Australia.

Australia Praised By Investors March 2005

Australia is being praised and showered with complements by investors for its resilient economy, political stability, ease of purchasing investment properties with high yielding returns, highly skilled and multi-lingual workforce plus the enviable position as the best place in the Asia-Pacific to live and work. Australia is ranked as the most resilient economy by the World Competitiveness Yearbook 2004 for the third year running and boasts 14 years of uninterrupted economic growth. Over the last seven years, its average annual growth has been 3.7%.

Overseas Buyers Attracted to Value in Australia Feb 2005

Real estate continues to be the focal point of foreign investment in Australia, with total foreign investment in Australian real estate increasing to $28.7 billion in 2003-04 ? a rise from $21.9 billion the previous year. The 2003-04 annual report of the Foreign Investment Review Board, released this month, shows that in 2003-04, there were 3,945 approvals for foreign investment in residential real estate, with a total value of $18.31 billion. Of these, 574 proposals were for "off the plan" purchases valued at about $300 million, as well as 292 applications by developers for advance approval to sell property off the plan. There were 28 fewer approvals compared with the previous year, but the value rose by $3 billion, to $9.1 billion. Queensland attracted the highest level of interest at 38.6 per cent of the total, at a value of $7.28 billion. The most significant investors in Australian real estate were from Singapore, with approvals valued at $3.37 billion. Other investors were from the United Kingdom ($2.288 billion); United States ($1.629 billion); Malaysia ($1.065 billion); Japan ($906 million); Germany ($898 million); other European Union countries ($481 million); and China ($121 million).

SEQ Government Regional Plan Feb 2005

Queensland Premier Peter Beattie said the South East Queensland [SEQ] Regional Plan has been compiled to ensure the region remained one of the greenest urbanised areas in the world, while catering for strong population growth and future prosperity.? ?By 2026, it?s projected that about one million more people will live in South East Queensland, bringing the population to 3.7 million and demanding 550,000 new homes and apartments. That will mean huge opportunities ? including 425,000 new jobs ? but growth brings challenges.? ?With the release of this draft,? Mr. Beattie said, ?more than 80% of the region will be immune from urban development. In an area covering 22,420 square km (240km from Noosa to the Gold Coast and 140km west to Toowoomba), 18,500 square km will not be available for urban development ? for example, national parks, conservation areas, water catchment areas and good agricultural land.? The strongest and most attractive areas for growth and the jewel in the crown is the Gold Coast with strong demand in all areas from business to life style with years of growth and prosperity ahead of it.

Building Activity Report Jan 2005
	Residential building activity stabilised in the third quarter of 2004, adding to the already record pipeline of work yet to be done, according to figures released this week showing that, despite a fall in total building activity in the September 2004 quarter, the value of residential building work done increased to $8.717 billion, up 0.8 per cent, to its highest level in 4 years.

Immigration Healthy Jan 2005

The number of migrants and refugees arriving in Australia has increased by 60 per cent in the past ten years, and nearly one in four of Australia?s 20 million people were born overseas, new figures show this week. Releasing the figures for 2003-04, Immigration Minister Amanda Vanstone said that more than 111,000 people arrived and settled in Australia in the period, a rise of almost 20,000 on the previous year. Most of the migrants came from the United Kingdom, followed by New Zealand, China, India, South Africa, the Sudan and the Philippines.

Property comparisons over five years. Jan 2005

The Real Estate Institute of Australia (REIA) has released its annual summary of the residential and commercial property markets, including all leading property market indicators for the year 2003 ? 04, with comparisons over the past five years. ?Property is a key sector in the Australian economy, with dwelling sales representing $180 billion or 22.8 per cent of GDP in 2003 ? 04? said REIA President, Ian Wells. ?The state of the property market has a very significant effect on the Australian economy as well as on the socio-economic well-being of every Australian.? Announcing the release, Mr. Wells said ?Australian Property Market Indicators is essential reading for anyone with an interest in the Australian economy and the property market. This annual report provides a wealth of information for those making investment-related decisions regarding property. It is also a valuable reference for organisations and individuals who have an interest in the broad performance indicators for the property market throughout Australia.? Of findings in the report, Mr. Wells went on to say ?2003 ? 04 was characterised by a stabilising housing market, with both owner-occupiers and investors responding to changing demand and interest rate rises in late 2003. There was a gentle and orderly slowdown in house prices in Sydney, Melbourne, Canberra and Brisbane, while Adelaide, Perth, Darwin, Hobart and regional areas continued to catch up with the higher prices of the larger capital cities.? ?The current success of Australia?s economy has generated high levels of property investment. Looking ahead, while sound economic fundamentals remain in place, the property market in 2005 will be stable. Long term property investors and home buyers will continue to view the property market with favour, particularly if interest rates remain stable.?

2005 Predictions Dec 2004

The New Year is traditionally a time when predictions are made about the year ahead. A recent survey of Australian economists showed the majority now believe interest rates will remain steady in early 2005, with the possibility of a rate rise late in the year. As for the property market, economists say the market is returning to sound fundamentals with better rental yields for investors and good buying opportunities in areas where employment growth is fuelling demand.

Gold Coast Wins on Climate Dec 2004

When it comes to weather the Gold Coast has been voted the best in Australia and one of the best in the World for its climate after statistics recently showed that it has the most favourable climate for human comfort. The ideal temperature for human comfort is between 15 degrees C to 27 degrees C 1st Place = Gold Coast @ 99% Other areas came in as follows Sydney @ 81%, Melbourne @ 57% and Canberra @ 47% The Gold Coasts annual averages are; Sunshine = 8 to 12 hours Temperature = 15 degrees C to 25 degrees C Humidity = 62% Long term average monthly rain fall = 120mm

New Units Division in Brief Nov 2004

 Over the past year ending September 2004 there were approximately 1,533 new apartments sold grossing approximately $853 Million.  In the September 2004 quarter alone there were approximately 438 new apartments sold grossing approximately $248 Million.  At the end of the September 2004 quarter there were approximately 1,323 new apartments available for sale which equates to approximately 9 months of supply based on the current records of demand.

Gold Coast International Airport Nov 2004

The Gold Coast Airport has just opened its door to International Flights after the Federal Transport Minister and the Deputy Prime Minister granted the approval of a runway extension. This means international jets will be able to operate directly in and out of the Gold Coast giving our destination a far greater appeal to a wider range of travellers and business people. It will be at least two years before the Gold Coast reaps the benefit of this announcement but it is yet another sign of the coming of age and the need for growth in the region.

Gold Coast Cruise Ship Terminal Planned Nov 2004
	State Government Officials and the State Development Minister have told Gold Coast City Leaders that the Gold Coast is set to get its own Cruise Ship Terminal just north of Surfers Paradise at the Spit near Sea World, the multimillion dollar project is scheduled to move ahead into its next phase of planning by approximately March 2005.

Market Recovery Nov 2004

According to September quarter figures released this week by the Australian Bureau of Statistics, approvals to build new dwellings have dropped to their lowest level in more than three years. Residential building approvals dropped an adjusted 3.8 per cent in the month of September, whilst over the year the figure was down by 24.6 per cent. In a statement released by Master Builders of Australia, chief economist, Mr. Todd Ritchie, said that the housing downturn was gathering pace and justified [last weeks] decision by the Reserve Bank of Australia to keep interest rates at current levels. The decline in building approvals and the consequent slowing in the building industry could see the drying up of any oversupply of new property in the market, fuelling a lowering of vacancy rates and eventually leading to a market recovery.

Imports and Dollar strong, No Rate rise Nov 2004

Home borrowers have again been spared an interest rate rise this week in spite of another surge in imports, and economists believe we can breathe easy until well into next year. Falling prices for food, medicines and cars have helped keep the lid on inflation despite soaring petrol prices, taking pressure off interest rates. The annual rate of inflation dropped to 2.3 per cent in the September quarter from 2.5 per cent, the Bureau of Statistics said.

Renovating? Oct 2004
	The property market may be tightening in some areas, but Australians are undertaking home renovations in near record numbers. According to recent figures released by the Housing Industry Association (HIA), renovation activity is expected to climb by a further 1% in 2004/05 to an astounding $22.2 billion.

Islands So Cheap Oct 2004

There are many private islands on the Australian property market at present including Little Green Island off Mackay which will be auctioned very soon, is expected to fetch around $2m to $2.5 million. Other idyllic choices range from the 16.5ha Goodnight Island off Greenwell Point on the NSW South Coast, around $3 million, and a 16.7ha parcel of land on Dunk Island off Queensland has been listed at $8.3 million

A bright future ahead Oct 2004

The Reserve Bank of Australia (RBA) has decided this week to keep interest rates on hold given the recent softening in Australian economic data, but now the Federal election is out of the way and the Liberal Party has maintained control the out-look is bright with confidence growing in all areas. The RBA has left official interest rates unchanged at 5.25 per cent, having last raised them in November and December 2003, in two quarter of a percentage point moves. HSBC senior economist Anthony Thompson foresees ?more resilience in the numbers going forward", and that this should provide the RBA with some ammunition to justify a 25 basis point rate increase around the end of the year although others are now forecasting no change until March 2005.

Home loans rise Sept 2004

The number of home loans issued in Australia increased in the last three months by 1.8 per cent to 103,149, up on the previous quarter. While the numbers of first home buyers was up slightly on March, their representation in the total market was below normal levels. In the three months to 30 June 2004, the size of an average home loan increased by 5.4 per cent and average loan repayments grew by 5.3 per cent. The average Australian home loan grew to $213,515, up from $202,545 last quarter. Average Australian monthly loan repayments were $1,493, up from $1,417. Median weekly family income remained steady during the quarter at $1,065. Managing Director of AMP Banking, Michael Guggenheimer, said that, although overall home loan affordability continued to decline, there was enough information in the report to confirm that the housing market had slowed but not ground to a halt.

Construction takes a rest Sept 2004

After three years of near record home building across the country, the residential construction industry in Australia will pause for breath before staging a comeback in 2007 according to a report released this week by the Housing Industry Association (HIA). Commenting on the release of the September quarter 2004 HIA National Outlook publication, HIA?s Chief Economist Mr. Simon Tennent said that this moderation in activity will occur at a time when the fundamentals that drive housing demand remain robust. ?Economic growth is relatively strong, the unemployment rate is historically low, and there hasn?t been the overbuilding of previous cycles,? Mr. Tennent said. ?This is quite clearly nothing like the housing shakeouts we witnessed in the late eighties and mid nineties, and this is reflected in our forecasts.? ?We expect the down cycle to turn up in 2006/07 after which strong underlying demand, aided by a robust Australian economy and high overseas migration will come back into its own,? he said.

Strong growth for house prices Sept 2004

The Real Estate Institute of Australia (REIA) have just released their June quarter median house price data which showed house price growth slowed over the June 2004 quarter but remained strong between June 2003 and June 2004. According to the REIA, the median house price increased by 7.2 per cent in Hobart to $252,000. Median price increases were also recorded in Adelaide, which rose 2.9 per cent to $250,000 and Darwin whose median house price increased by 1.4 per cent to reach $255,000. In contrast, Melbourne?s median house price fell by 2.7 per cent during the June quarter to $357,900, as did the median prices in Canberra (down 2.5 per cent to $361,500), Brisbane (down 1.7 per cent to $350,000) and Perth (down 1.0 per cent to $240,000). Sydney was the only capital city in the country whose median house price remained static during the June 2004 quarter at $520,000.

Home Loans Declining Affordability Sept 2004

According to the latest AMP Banking/Real Estate Institute of Australia (REIA) Home Loan Affordability Report, home loan affordability fell nationally during the June 2004 quarter. The report indicated the reason for the decline was an increase in the size of the average Australian home loan combined with no growth in weekly family income. According to the AMP/REIA report, the size of the average Australian home loan increased by 5.4 per cent during the June quarter, which in turn caused the average loan repayment to rise by 5.3 per cent.

Support for Reverse Mortgages Aug 2004

During a mortgage and advice forum in Sydney this week, Bluestone Equity Release has called on the Government to consider alternative methods such as reverse mortgages to ensure older Australians are able to fund their own retirement rather than rely on Government pensions. A reverse mortgage basically enables people 65 years or over to borrow against the equity in their home and access cash without making any repayments on the borrowings during their lifetime. The loan is then typically repaid when the borrower dies or sells the property to move elsewhere. Generally speaking, the interest rate charged on a reverse mortgage is slightly higher than standard variable home loan interest rates, although generally lower than on personal loans. If a retired person elects to borrow against their home using a reverse mortgage they may ultimately reduce their children's inheritance because they are eating into the equity built up in the family home over many years.

Office Vacancy Tightens Aug 2004
	Everybody's happy after hearing the latest report from the Property Council of Australia [PCA] because the Gold Coasts overall office vacancy rate dropped to 7.1% which is a significant improvement from the 11.8% a year ago. The Gold Coast office market is now Australia's largest non-capital city office market and new space is in demand.

Demand Strong Aug 2004

According to data released by the Australian Bureau of Statistics (ABS) this week the value and number of new home loans issued fell during the month of June 2004. But it?s not all bad news with data released last week showing building approvals rising across the country, indicating there is still underlying demand for property. The ABS data showed the value of new home loans issued during the month of June 2004 fell by 4.7 per cent to $14,778 million, causing the average home loan size to fall for the fifth time in four months to $202,700. Of this total, the value of home loans issued to owner occupiers fell 2.4 per cent to $9,630 million, while the value of loans issued for investment purposes also fell 8.8 per cent to $5,148 million. The number of new loans issued also fell during the month. The total number of loans issued was 47,122, 3.3 per cent lower than the previous month. Of this total, 4,899 loans were for the construction of new properties (down 5.1 per cent), 1,760 were for the purchase of new properties (down 0.1 per cent) and 40,463 loans were for the purchase of existing properties (down 3.3 per cent).

Building approvals rise in June quarter Aug 2004
	New data released late last week by the Australian Bureau of Statistics (ABS) showed, on a seasonally adjusted basis, total new building approvals rose by 1.5 per cent during the June 2004 quarter to 14,713 and approvals for private sector houses also rose, by 2.0 per cent during the quarter to 9,425.

Agents & mortgage brokers can offer tax advice Aug 2004
	A draft ruling by the Australian Tax Office (ATO) has cleared the way for real estate agents, mortgage brokers, banks and conveyances to offer tax advice to their clients in limited circumstances where the advice is incidental to the service being provided. Up till now, tax advice could only be provided by accountants and registered taxation agents.

No interest rate change for eighth month Aug 2004

As a result of its meeting early in the week the Reserve Bank of Australia has elected to leave interest rates steady again this month. Although the bank gave no reason for its decision to leave rates unchanged many economists believe the combination of the decline in the housing market, strong imports, solid currency growth and the forthcoming Federal election all played a role. The decision means August will be the eighth consecutive month of steady interest rates.

Home Ownership Determines Wealth July 2004

Study shows home ownership determines wealth. The National Centre for Social and Economic Modeling at the Australian National University (ANU) in Canberra has just completed a study on home ownership in Australia and the results indicate home ownership, rather than education, is much more likely to determine the wealth of the average Australian. The study found there was a significant gap in the wealth of home owners and renters. According to the study 90% of the bottom fifth (in wealth terms) of the population were renters who were worth an average of $6,000, that is ten times less wealth than the next fifth of the population and 100 times less wealth than the top fifth wealthiest of the population.

Boom Still Strong In Queensland July 2004

Economic boom may keep rates low A panel of 20 leading business and economic forecasters, brought together by ?The Age? newspaper has found Australia?s current economic boom is set to continue for at least another 12 months. For home buyers this is great news because it means interest rates will probably only be lifted by a modest quarter of a percent either late this year or early next year. According to the panel this would see variable interest rates rise to around 7.3% compared with the current variable rate of 7.03%.

MBA Confirm Strong Market July 2004

According to Master Builders Australia (MBA), the peak body for the building and construction industry, the Australian housing sector is entering an uncertain period but, despite this, the MBA believe there is nothing to suggest the market will experience a substantial crash. Ongoing speculation about further interest rate rises and the impact of interest rate rises in November and December last year contributed to a slow down in housing activity. In addition, the traditionally slower winter period and the fact that we are in the lead up to a Federal election have also had a dampening effect on the housing market, although these reasons are not enough to conclude we are in a housing freefall. In fact, the most recent building activity data from the Australian Bureau of Statistics (ABS) showed residential building activity was at its highest level since the June 2000 quarter. The ABS statistics showed, on a seasonally adjusted basis, the value of all building work completed during the March 2004 quarter was $12.1 billion, a 0.6 per cent increase on the previous quarter and 3.8 per cent above the March 2003 quarter. During the March 2004 quarter investment in residential building also increased by 2.4 per cent to $7.0 billion, 4.3 per cent higher than the March 2003 quarter. Investment in alterations and additions fell by 0.6 per cent to $1.3 billion during the March 2004 quarter, although this level of activity was still 9.6 per cent higher than the same period last year. Chief Executive Officer of Master Builders Australia, Mr. Wilhelm Harnisch, said ?While in both volumes and raw dollar terms building activity was at a record high, all indications are that a mild slowdown is now underway.?

What the Banks Say July 2004

A research study published by the Geneva based Bank of International Settlements said central banks, including the Reserve Bank of Australia, should express their inflation objectives over a longer period, so they have the latitude to increase interest rates, even when inflation is low. Currently, the Reserve Bank of Australia operates under an agreement with the Federal Government that makes keeping inflation between 2 and 3 per cent (over the medium term) the primary benchmark for setting interest rates. The study argued that if central banks were forced to commit to keeping inflation low it could result in economic weakness, or even deflation. Dr Lowe, who headed the study, believes central banks should focus on rapid credit growth instead of inflation. He said modifying policy would enable central banks to "lean against the build-up of financial imbalance", even when the short-term inflation prospects remained subdued. For home owners, any change in the policy of setting interest rates could see the Reserve Bank raise and lower interest rates more regularly and dramatically. Historically in Australia interest rates have risen and fallen in a continuing pattern which has generally lasted around seven years. The main point in this interest rate cycle is that looking back over the last decade; peaks in interest rates have tended to last no more than around two years. So, if we accept the fact that interest rates are cyclical, by definition, all types of loans, whether for home ownerships, investment, variable, fixed for short periods or long periods, are based on this cycle. When lenders set their rates they are taking into account their expectation of future events and interest rate movements. In theory, this means (if the Banks get their calculations right), that all the different combinations of interest rates and terms should average out to be about the same over time. That is not to say that interest rates don't matter. It?s wise to get the best deal you can every time you borrow. For people who like the security of knowing what their mortgage repayments will be each month the lesson to be learned is to lock in rates for longer periods when they are low and for shorter periods when rates are high. If predictability of payments isn?t so important to you, you might be happy to ride the interest rate roller coaster. Whatever you choose, make sure you have taken into account your unique financial circumstances. At present the basic variable rate loans from the major Banks average around 7.07 per cent while 3 year fixed rate loans for owner occupation and investment average around 6.95 per cent.