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GUEST OBSERVER
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The RBA has broadly left its near-term growth forecasts intact while medium-term projections are unchanged. 
 Inflation forecasts are untouched and core inflation is expected to gradually rise from here.
The RBA have a soft downward trajectory for the unemployment rate that broadly tracks around 5 3⁄4 percent.
 We have the RBA cash rate on hold at 1.5 percent throughout 2017 and into 2018.
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The RBA’s updated forecasts haven’t shifted the monetary policy dial in the slightest. The Bank has forecast decent growth outcomes over the next few years. And while core inflation is not expected to get back to target until 2018, it is forecast to rise gradually. 
The RBA is, however, more confident that its forecasts will be achieved. We think that the Bank retains its neutral bias despite there being no forward guidance in today’s Statement on Monetary Policy (SMP).
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<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%208.15.15%20AM.png" alt="">
 
Looking at the Bank’s through the year forecasts implies that the pace of growth picks up from 2 percent/pa mid-2017 to an above-trend 3 percent by year end. The economy is forecast to be growing by a strong 3 1⁄4 percent by mid-2018. LNG production, infrastructure spend and a lift in non-mining investment are expected to push growth higher. 
The RBA expects LNG exports to add 1⁄2ppt to GDP growth in both 2017 and 2018 in QII. The Bank has indicated that Cyclone Debbie will negatively impact on coal exports. But judging from the RBA’s growth forecasts the impact has not been severe enough to revise down GDP estimates. The Australian economy would be deemed to be in good shape if the RBA’s growth outcomes can be achieved. While we think they are possible, they look a best case scenario and the risk is that output growth undershoots the Bank’s forecasts. At this stage, QI GDP growth is shaping up as a soft print. 
The RBA expects household income to grow, “at a similar rate to consumption, implying little change in the household saving ratio.” Here we note that the savings rate has been trending lower since dwelling price growth lifted. The fall in the savings rate has supported consumption growth in the face of weak wages growth.
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The Bank’s assessment on the labour market is best characterised as temperate. The RBA sees employment growth as “moderate” over the next six months but expects it to pick up to around its “long run” average beyond that. The GDP and employment growth forecasts are reconciled by the big contribution to growth that will come from LNG production which is not labour intensive. 
A possible decline in underemployment also explains the disparity between GDP and employment forecasts (i.e. growth in hours worked could be stronger than employment growth if some part-time employees find additional work). The unemployment rate is forecast to be around 5 3⁄4 percent over the forecast period but with a very mild downward trend. 
On wages, the RBA expects growth to remain steady over the next year before picking up over 2018 and 2019, although, “at a slightly slower pace than had been forecast in February.” Inflation forecasts are unchanged from February. Core inflation is expected to rise gradually but is unlikely to get back to target until 2018. We agree.
<a href="https://www.propertyobserver.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%208.18.00%20AM.png" target="_blank">Click to enlarge</a>
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It sounds like a broken record now, but rate cuts are off the table unless the housing market falters or the unemployment rate materially rises. We think that the inflation prints over 2017 will take a back seat to developments in the labour and housing markets.
 As such, our monetary policy call has the RBA on hold in 2017 and well into 2018. The risk, however, lies with another cut given weak wages growth, below target core inflation and an expected further downturn in hard commodity prices. 
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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Growth and inflation forecasts broadly unchanged: Gareth Aird

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The Mosman-based LJ Hooker Lower North Shore group is joining the Ray White network in a shock defection.
LJ Hooker Lower North Shore has been operating for 60 years and employs more than 50 people.
It has been run by the same directors for the last 20 years, having come to the fore under the prior stewardship of the late Ron Wilson.
LJ Hooker Lower North Shore directors Richard Harding, Geoff Smith and Bernard Ryan are to undertake the re-brand, seeing the potential for expansion across the region from their already large footprint.
Last October the veteran agent Kingsley Yates departed the Ray White group ending his three decade long franchise association due to "differing directions."
It was reported his departure was the most dramatic sign that the future of franchise is set for turbulent times given lowered agent commissions along with the market listings contraction while all the time lumbered with geographic boundary restrictions of the franchisor. In a small way, the Purplebricks incursion has set the cat among the pigeons too.
There are also whispers a small father-son LNS office is set to be snapped up by the burgeoning ASX-listed, The Agency.
On the Yates exit from the Ray White Lower North Shore last October, Ray White head office indicated it had been keen during the renewal negotiations for wider penetration.
So while it has taken many months longer than anticipated Ray White is now likely to set up more offices across the lower North Shore as an outcome of the defection by the trio and their team.
Ray White Lower North Shore was the largest North Shore agency in the Ray White Group, with a team of 60.
The LJH Mosman move to Ray White represents "a long term strategic step for both businesses" in one of Australia’s largest and most dynamic pricey real estate markets.  
Harding said there was no doubt his business had been operating at its highest level.
“We are incredibly proud of what we have achieved over the past 20 years - and thankful to LJ Hooker for their support and commitment over that time,” he said.
“However we know we are ready to take the next step and have put significant thought into this decision.
“Joining the Ray White Group provides the ideal vehicle for us to become an even greater force in our local area.“
LJ Hooker Lower North Shore director Geoff Smith said the new partnership gives access to the ambitions and values of the White family.
Ray White Group director Dan White, fourth generation of the 115-year-old White Family owned business, welcomed LJ Hooker Lower North Shore.
“This promises to be one of the most important partnerships we have ever entered into and we expect the changeover will formally occur before the end of the financial year,”  Mr White said.
“The re-brand of this exceptional business is the first step in a strategic plan that Ray White has been working on for quite some time that specifically targets Sydney’s crucial lower north shore region, one of the key property markets in Australia.”
LJ Hooker Lower North Shore were a leading office in the LJ Hooker Group and achieved record results in March and again in April.
It operates four departments - residential and prestige property sales, their specialised Urban Living apartment and townhouse sales division, property management, projects and development, managed by director Tim Abbott, as well as retail and commercial, managed by director Scott Stephens.
 LJ Hooker Lower North Shore directors Richard Harding and Geoff Smith pictured above.
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LJ Hooker Lower North Shore jumps ship to take Kingsley Yates's Ray White office

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GUEST OBSERVER
Determining funding for the right housing measures in the upcoming Federal Budget (May 9) would be much easier if the Government had a national housing plan and a Minister for Housing according to the managing director of a leading community housing provider and housing commentator.
Budgets should be developed to meet strategic and operational plans.  It makes no sense that Australia does not have a national plan nor a Minister responsible for something as fundamental as housing.
Housing, including social and affordable housing, needs to be viewed as part of Australia’s social and economic infrastructure and integrated with other infrastructure planning. He agreed with the treasurer, The Hon Scott Morrison, that there is no silver bullet to the housing crisis but says with rising social housing waiting lists, high capital city house prices and an increasing number of working people experiencing housing stress, action is long overdue.  
An effective plan will only be realised if the Commonwealth Government recognises that housing is a fundamental human right and the responsibility of the national Government and a national Minister, not just the states and territories.
The Government’s national co-ordination and responsibility must include direct investment in social and affordable housing.
There are less public housing dwellings now than last decade despite around 200,000 people on public and social housing waiting lists and a general acceptance that Australia has a shortfall of between 200,000 and 400,000 dwellings.
Australia was in a similar situation in 1945s when the national Government took action in conjunction with the States.
Back then there was a need for austerity but there was also acknowledgement that workers needed housing and that constructing housing would stimulate the economy and get people working.
With the current downturn in manufacturing and mining we have many workers for whom constructing housing is a realistic use of their skills; another example of housing’s integration with social infrastructure.
This way, more social and affordable housing becomes possible on the back of economic infrastructure investment and job creation rather than as welfare subsidy.
If we had another “Affordable Housing Commission” type policy response the housing built could eventually sold by Government, as it was previously.
One example of possible integration of housing and other infrastructure planning was high speed rail links. He said such infrastructure is already being proposed and would create new commuter towns between those capital cities, taking pressure of capital city housing demand and boosting regional Australia’s economy.
 A rising tide can lift all ships and makes the provision of affordable housing and housing subsidies more sustainable.
A number of housing and community organisations, economists, academics and other experts have done considerable work to help the Government to create a national plan.
Where are Australia’s long term plans for infrastructure and housing? It is time for such plans rather than one off political cycle centric planning and initiatives.
You can budget for a plan.
Greg Budworth is a managing director of Compass Housing group and co-chair of the United Nations Habitat program’s civil society partner constituent group. he can be <a href="https://www.compasshousing.org" target="_blank">contacted here</a>.
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Infrastructure and housing plan needed before budget initiatives: Greg Budworth

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GUEST OBSERVER
For the first time in some years we expect better estimates of the coming year’s deficit, due to higher commodity prices.
Infrastructure investment plans, including a new Sydney airport and a major national rail project, SME tax cuts and education spending are expected to be the budget highlights.
Rates Strategy: After years of disappointment, the budget should be welcomed by bond investors as it is set to confirm 2016/17 as the peak of government debt issuance
Revenue gets a boost from higher commodity prices.
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It has finally arrived. After a run of budgets when the Treasurer of the day has had to announce that the underlying budget deficit was larger than expected, this year we expect a modest improvement. 
Rising commodity prices have been the main source of support, as the bounce is expected to have delivered additional tax revenue. However, this positive effect has been partly offset by weaker-than-expected wages growth, relative to the projections in the May 2016 budget, making the overall improvement only modest. 
The projected budget deficit is expected to be AUD25bn (1.4% of GDP) in 2017/18 (estimated at AUD28.7bn in December 2016 and AUD26.1bn in May 2016). However, much depends on the government’s assumptions about commodity prices, which we expect to be cautious. As a result, we expect the projected return to budget surplus still will not be forecast to arrive until 2020/21, as previously forecast.
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The key policy initiatives in the budget (due to be handed down on 9 May 2017) are expected to be plans for infrastructure investment, including a second airport in Sydney and a new inland rail from Brisbane to Melbourne, a corporate tax cut for small and medium-sized businesses and a boost to education spending. The Treasurer has also announced that, for the first time, the budget will separately report debt that is earmarked for infrastructure from that used for recurrent spending. 
With Standard &amp; Poor’s putting Australia on ‘negative outlook’ for its triple-A sovereign rating in July 2016, a key question is whether Australia will get downgraded. With the budget set to look a bit better, an improving nominal economy and signs of some budget reform, we doubt a downgrade will arrive next week. 
Our new onshore AUD/NZ rates/FX strategist, Tom Nash, expects the budget to be positive for long-dated government bonds (ACGBs). Even allowing for the infrastructure spend, 2016/17 should mark peak ACGB issuance. 
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A rare improvement in the budget outlook 
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Largely thanks to continued strength in commodity prices, we expect the forecast budget deficit for 2017/18 will look slightly better than previously estimated. This would be a marked contrast to Australia’s recent budget history, which since 2009 has featured consistent downward revisions to the budget balance and the predicted return to surplus being pushed ever farther into the future. 
There was some rare good news in the December 2016 mid-year fiscal update, when the forecast 2016/17 deficit was revised a touch lower from AUD37.1bn to AUD36.5bn, in response to the lift in commodity prices seen during late 2016. However, the commodity-related boost was expected to be temporary and the projected deficits beyond 2016/17 were expected to be larger than previously forecast (Chart 1). 
Since the mid-year update, the strength in commodity prices has proven to be more sustained, especially for iron ore. Although iron ore prices have dipped in recent weeks from over USD90/t to around USD66/t, the mid-year fiscal update assumed a decline from USD68/t at the time to USD55/t by Q3 2017. 
Although the assumptions underlying the new budget estimates are expected to once again assume that commodity prices will revert to a lower level, they will probably be a little more optimistic than those used in December. This should deliver a stronger nominal growth outlook and, in turn, better revenue projections (Charts 2, 3 and 4). 
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As a rule of thumb, a 1 percent increase in nominal GDP lifts government revenue by around AUD3bn. The mid-year update assumed nominal growth of 5.75 percent in 2016-17 and 3.75% in 2017-18. While the former is not much different from our own expectation of around 6 percent, we see scope for the 2017-18 forecast to be revised up to 5.25 percent or above thanks to the continued strength in commodity prices and a likely upward revision to the real GDP growth outlook (Table 5). 
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Key expected policy initiatives provide signs of fiscal reform 
For some time now, the clarion call in our research has been for fiscal policymakers to focus on tax reform and infrastructure investment. As we have pointed out previously, Australia’s new growth engine is exporting services to Asia, including education and tourism, and if Australia is to remain competitive in services exports, better urban infrastructure is needed (see Australia’s broadening economic links to China, 8 November 2016). At the same time, we have noted that Australia’s tax system has become more dependent on taxes that distort economic behaviour, such as corporate and personal income taxes, and that reform of the tax system is needed. 
This budget is expected to show some progress on these fronts, although more reform is needed over time. Key initiatives are expected to include:
The government is set to announce that a new government-funded company will be set up to build a second airport in Sydney at Badgery’s Creek at an expected cost of A$5-6 billion. A new inland rail line from Melbourne to Brisbane is also set to be announced, at a cost of A$10-12 billion. These projects are expected to be off the government’s balance sheet, much as the National Broadband Network was funded in earlier years.
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The Treasurer, Scott Morrison, has announced that the budget will also, for the first time, split its accounting of new government debt into that used for capital spending, such as infrastructure, and current spending, such as public sector wages. This is a positive development that should allow a clearer assessment of government spending that is investing in future growth prospects and that which is being used for current consumption.
The government is expected to announce a significant boost to spending on primary and secondary education, of around A$19 billion over the next decade (figures as report by the Australian Financial Review on 3 May 2017), adopting an adjusted version of the opposition Labor Party’s previous proposal for a ‘needs-based’ funding model.
Tax cuts for small and medium-sized businesses have already been passed by both houses of parliament, but will be part of the budget. Businesses with less than A$50 million in turnover will see the company tax rate cut from 30% to 25% by 2026/27, with the reductions phased in at different rates for businesses of different sizes. The budget is expected to contain a proposal to broaden this to every company by 2026/27.
A range of previously proposed budget measures that have not passed through parliament will also be scrapped. These include cuts to Medicare proposed in the lead-up to the 2016 election as well as cuts to education and welfare spending. These are set to reduce budget savings by around A$8 billion. 
Structural budget deficit remains a challenge
Although the stronger commodity price story, along with some fiscal consolidation measures, are expected to make the budget bottom line look a little better, Australia still faces many years of sizable budget deficits. This is because the deficit is structural, not cyclical. That is, the deficit is not the result of temporarily weak conditions in the economy – and so an improvement in economic conditions cannot be relied upon to return the budget to balance (Chart 6).
Interestingly, the Australian Treasury estimates that the structural deficit has been consistently larger than the actual underlying cash balance over the past decade, despite below-trend economic growth. This is mainly driven by the large, budget-positive impact of high commodity prices outweighing the smaller, budget-negative impact of weak GDP growth.
The precise estimates of the structural balance are highly uncertain, as they rely on assumptions about the size of the output gap and the long-run level of the terms of trade. For instance, the IMF’s estimates suggest that Australia’s structural deficit has not been as large as the actual deficit. Nonetheless, regardless of its size, it seems clear that Australia does have a significant structural deficit and that an improvement in cyclical factors alone will not be enough to restore a balanced budget over the long term. Changes to fiscal settings will be needed.
A rating downgrade is unlikely at this stage
Despite ongoing budget deficits (both actual and structural), we do not expect Australia to lose its AAA credit rating. In an international context, Australia’s fiscal position is still strong; in particular, net debt remains low, although it has risen significantly since 2008 (Charts 7 and 8).
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With the budget deficit currently around 2 percent of GDP, and expected to narrow further in 2017/18, the government’s debt-to-GDP ratio is also close to stabilising.
The key factors that have been of concern to the major rating agencies have been: a lack of fiscal reform, due to political constraints; Australia’s persistent current account deficit; and high household debt levels, making balance sheets more vulnerable.
The key catalyst for Standard &amp; Poor’s putting Australia on ‘negative outlook’ for its triple-A rating in July 2016, was the close Federal election result and the rating agency’s expectation that this reduced the likelihood of ‘forceful’ fiscal action need to get the budget back to surplus. Since then, commodity prices have lifted, supporting tax revenues, and there are some signs that fiscal reform may be moving the right direction, albeit slowly.
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The current account deficit has also narrowed significantly, due to the recent lift in commodity prices, the ongoing rise in commodity exports as new capacity comes on line and continued growth in services exports (Chart 9).
Household debt has continued to rise and is at high levels, which is expected to be a continued point of focus for the rating agencies. At the same time, the prudential regulator, in a coordinated approach with the central bank, has been tightening its prudential settings to reduce the risk entering the financial system.
Rates Strategy: A bullish budget for bonds
After years of disappointment, the 2017/18 Budget is set to be positive for Australian Commonwealth Government Bonds (ACGBs) as it will likely confirm that bond issuance has peaked and fiscal consolidation is back on track. We have previously highlighted fiscal policy as one of the structural factors underpinning our bullish stance on the long-end of the curve (see ‘AUD Rates: Cheap enough’, 30 March 2017).
The Treasury is likely to confirm FY16/17 as the peak for ACGB issuance, despite uncertainty over the funding of infrastructure projects. Mid-year Treasury projections imply a sizeable 24% decline in gross issuance in FY17/18 (to AUD78bn), and a larger 43% decline in net issuance (to AUD44bn) compared to the current fiscal year. We present an alternative scenario in Table 10 that assumes that all of the announced infrastructure spending is funded by debt as well as incorporating our economics team’s estimate of improved revenues. Total bond supply is c.AUD10bn higher over the projection period under this scenario but 2016/17 remains the peak. 
While the duration of new ACGB supply is likely to stay high (the weighted average maturity has been 10.6yrs this fiscal year compared to 7.6yrs five years prior) we expect it to be well absorbed. The recent uptick in bid-cover ratios (Chart 11) as well as a continued gradual rise in offshore bond holdings implies a steady demand for duration.
With fiscal consolidation on track, HSBC’s base case is that this budget will not prompt any of the major credit rating agencies to downgrade Australia’s AAA credit rating. Importantly, an improved revenue outlook should give rating agencies more confidence that the public debt-to- GDP ratio stabilises in the near term and declines over the medium term as net bond issuance drops below 2% of GDP (Chart 12).
Australia’s Triple-A rating is positive for bonds primarily because politicians’ commitment to maintaining it encourages strict fiscal discipline. Reflecting this, Australia has the largest underlying fiscal consolidation embedded over the medium term among developed economies, based on the IMF’s standardized methodology (Chart 13). The pricing of credit risk premium is a secondary consideration for ACGBs given there is no real mechanical flow impact associated with a rating downgrade from AAA to AA and arguably yields already reflect a lower rating/ higher degree of sovereign credit risk (e.g. Australian sovereign CDS spreads already trade above the AAA average). 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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Better budget should protect rating: HSBC's Paul Bloxham

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SPONSORED POST
In this fast-changing mortgage environment, it can be hard for investors know whether to wait things out or alter their home loan now before conditions further evolve.
Many investors regularly refinance and restructure so they can unlock equity and maximise their tax position – but do old strategies still apply in this new environment?
Things became serious on 31 March, when APRA responded to the “heightened risks” in the mortgage market by tightening lending criteria.
These latest measures – which followed a first round of tightening that began in December 2014 – were “aimed at improving the quality of new mortgage lending generally and moderating the growth of investor lending in particular”.
As a result, it has become harder for investors to qualify for mortgages – particularly interest-only loans, and even more so interest-only loans with an <a href="https://www.ratecity.com.au/home-loans/lmi-calculator">LVR</a> above 90 percent.
Even before APRA’s announcement, lenders had been making life harder for investors by increasing rates and serviceability requirements.
This column won’t hand out financial advice – only a broker or planner or accountant can do that, but if anyone does want to refinance, they have now been given a opportunity that has never been seen before in Australia.
RateCity has created the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a> to allow borrowers to access market-leading rates while refinancing.
Borrowers who are with ANZ, Commonwealth Bank, NAB or Westpac could actually save up to $39,000 over 15 years by switching through the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
It’s impossible to say how APRA might act in the future – but the regulator made it clear back on 31 March that further changes might be on the cards.
“APRA will continue to observe conditions in the residential mortgage lending market, and may adjust the above measures, or implement additional ones, should circumstances warrant it,” it said in a <a href="https://www.apra.gov.au/MediaReleases/Pages/17_11.aspx" target="_blank">media release</a>.
As far as investors are concerned, the fast-changing mortgage environment might have some more surprises in store. 
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Is now the time to refinance your investment property? RateCity

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SPONSORED POST
There are a lot of reasons why Australians don’t refinance their home loans.
Some borrowers worry that switching lenders will take too much time, or require too much effort. Many home owners also feel that the benefits of switching lenders won’t ultimately outweigh the costs involved when refinancing.
Let’s take a closer look at the cost of switching lenders, and how to determine whether refinancing a home loan will ultimately be worth it.
How much does it cost to refinance?
The costs you may encounter when refinancing can vary, depending on the lenders involved and your financial situation. These costs can include:
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<li>Discharge fees (average: $250) – when you end your current loan, you may have to pay a discharge fee to cover the lender’s admin costs. Discharge fees are different from exit fees, which were banned in July 2011, though if your home loan started before this date, they may still apply.</li>
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<li>Upfront costs (average: $400) – these include establishment fees, valuation fees and settlement costs.</li>
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<li>Break fees - if your current home loan is on a fixed rate, you could be charged expensive fees if you exit the loan early. These fees are often based on how much variable rates have dropped.</li>
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<li>Lender’s title insurance for fast track refinance ($500-$3000) – only charged if you opt for an accelerated refinance, this keeps the lender covered in case of problems during the fast-track process.</li>
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<li>Lender’s mortgage insurance or LMI (varies depending on circumstances) – only required if you’re unable to fulfil the new lender’s minimum loan-to-valuation ratio (LVR) requirements, usually 80 per cent. For example, for a $600,000 loan, you’d usually need to provide a minimum $120,000 security deposit to avoid paying LMI.</li>
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Keep in mind that you may not always need to pay every switching cost when you refinance. Some lenders may be willing to negotiate some of their fees and charges, or even waive them altogether to attract your business.
Breaking even
Once you know how much refinancing a home loan is likely to cost you in fees, charges and other expenses, it’s time to consider how long it will take before the savings from your new loan will make up for these costs.
Using RateCity’s home loan calculator, you can estimate the minimum repayments required by your new lender. By comparing these repayments to your old ones, you’ll know how much you could save on your mortgage each month, and from there how long it will take for these savings to cover your switching expenses. 
For example, if your current mortgage is $600,000 on a 5 per cent interest rate with 20 years of repayments left, your current monthly repayment would be $3960. If you refinance onto a 3.64 per cent interest rate, you could reduce your monthly repayment to $3520 – a saving of $437 per month.
Assuming a switching cost of $1000 (a discharge fee of $300, application fee of $600 and settlement fee of $100), it would take you approximately 65 days to break even.
Also, if you could afford to keep paying the original monthly repayment of $3960, you would pay off more of your loan’s principal each month, ultimately reducing your loan term to 16.9 years. This would in turn reduce the amount of interest you’d have to pay, resulting in an average monthly saving of $688. This would allow you to break even on your switching costs in as little as 45 days.
When you consider that it’s possible to save an average of $39,000 on an average Australian home loan simply by refinancing with the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article5&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">RateCity Switch &amp; Save Sale</a>, the REAL cost of refinancing could come from not switching lenders soon enough!
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The real cost of refinancing: RateCity

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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/ratecity-logo.jpg" alt="" width="661" height="177">
SPONSORED POST
Don’t make the mistake of setting your mortgage and forgetting about it for the next 25 years – because it could cost you dearly.
One obvious <a href="https://www.ratecity.com.au/home-loans/refinancing-home-loans?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">benefit of refinancing</a> is that it gives you the chance to switch to a cheaper rate. Don’t forget, home loans are always changing, so even if you got the cheapest rate when you took out your mortgage, there’s a good chance that’s no longer the case.
Another benefit of refinancing is that it could allow you to access more flexible repayment terms, unlock equity to fund an investment property and consolidate a range of debts. 
RateCity has made it easy to change lenders with its <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>. Here are the top five reasons to take part:
1. Change to a cheaper home loan
Refinancing into a cheaper mortgage makes obvious sense. However, sometimes people don’t realise how much money they could save.
Imagine you had an interest rate of 4.25 per cent on a $400,000 mortgage that you were repaying at the rate of $2,500 per month. If you switched to a rate of 4.00 per cent and left your monthly repayments unchanged, your loan term would be reduced from 19 years and nine months to 19 years and two months. That would allow you to eliminate seven months of repayments, for a $17,500 saving.
2. Change to a better home loan
Another advantage of refinancing is that it can allow you to move to switch to a more flexible mortgage.
That could allow you to access new features such as an offset account, a redraw facility, the ability to make extra repayments or even the ability to take a repayment holiday. You could also move to a fixed rate or move to a variable rate or move to a loan that is half and half.
3. Unlock equity to fund an investment property
In certain circumstances, refinancing your home will allow you to access extra funds that you could then use as a deposit on an investment property.
To unlock extra equity, you need to get a new valuation on your home when you refinance, and that new valuation needs to be higher than the old one.
Imagine you originally borrowed $400,000 to purchase a $500,000 property – that would have given you a loan-to-valuation (LVR) ratio of 80 per cent. Now imagine you’ve since reduced your mortgage to $370,000 while the value of your home has risen to $550,000 – that would give you a new LVR of 67 per cent.
If your new lender allows you to increase your LVR to 80 per cent, you could increase your mortgage from $370,000 to $440,000. That extra $70,000 could then be used as a deposit on an investment property.
4. Unlock equity to fund other expenses
Of course, there are other ways you could spend that hypothetical $70,000 mentioned above. You could use it to fund value-adding renovations. You could use it to replace your old car. Or you could put it into an offset account and spend it several years in the future.
5. Consolidate debt
Imagine you were currently paying off a $370,000 mortgage at 4.25 percent, a $25,000 personal loan at 9.75 percent and a $15,000 credit card debt at 16.50 percent.
A new lender might allow you to refinance those three debts into a single $410,000 mortgage. Even if your new home loan was still priced at 4.25 percent, this sort of consolidation would not only make your life simpler, it would also allow you to repay the personal loan and credit card at a much cheaper rate. 
Refinancing made easy
RateCity is simplifying the refinancing process with its <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>, which will give borrowers access to market-leading rates.
Borrowers who are with ANZ, Commonwealth Bank, NAB or Westpac could save up to $39,000 over 15 years by switching through the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
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5 reasons you must refinance your home loan: RateCity

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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/ratecity-logo.jpg" alt="" width="679" height="182">
SPONSORED POST
Limiting yourself to the big four banks is like deciding to holiday only in your home town – you might have good experiences but you’ll miss out on so, so much.
That is not to criticise ANZ, Commonwealth Bank, NAB and Westpac, which are good banks. But they represent just a fraction of the offerings in the mortgage market. 
Statistics show the big four’s dominance: they provided 82.6 percent of all the mortgages that were sold in March, the most recent month for which statistics are available.
However, there are three good reasons why you should follow the lead of the 17.4 percent and use a non-major lender. 
1. They have cheaper rates 
Imagine you wanted to borrow $500,000 to purchase a $625,000 property. According to a recent search on <a href="https://www.ratecity.com.au/home-loans?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">RateCity</a>, non-major banks had 28 of the 30 cheapest advertised rates for owner-occupiers and 25 of the 30 cheapest rates for investors.
That’s not to say borrowers should never use the big four banks – there will definitely be occasions when one of their products is the best option. And that’s not to say borrowers should always take the lowest rate – there will definitely be occasions when a higher-rate product actually represents better value.
However, if a non-major lender has a loan that’s appropriate to the borrower’s circumstances and is also cheaper, the borrower could save tens of thousands of dollars over the life of the loan.
2. They give better service
Australians get better service from smaller lenders, according to the Roy Morgan Consumer Banking Satisfaction Report for the six months to March. The non-major banks achieved an average customer satisfaction rating of 86.1 percent, compared to 80.0 percent for the big four. The customer-owned mutual banks led the way with a rating of 91.0 percent.
There are two reasons why smaller lenders offer better service. First, they know they have no chance of beating the big boys unless they try harder. Second, they’re not massive, bureaucratic organisations, which means they can move faster and be more personalised.
3. They’re safe
Australia’s smaller banks are regulated by the Australian Prudential Regulation Authority (APRA), while non-bank lenders are regulated by the Australian Securities and Investments Commission (ASIC). Those regulators work together to safeguard Australia’s financial system and ensure lenders follow responsible lending rules. 
The other point worth mentioning is that it is the lender, not the borrower, that assumes the risk. If the hypothetical borrower mentioned above took out a $500,000 mortgage and the lender then collapsed, it would be the lender, not the borrower, that would be in trouble.
Nobody can unilaterally alter the terms of a legal mortgage contract, so the borrower’s mortgage would remain unchanged. The only difference is that the borrower would make their repayments to a different party – either a new lender (if the distressed lender found a buyer) or the liquidator (if it didn’t). So, even if the smaller lender went under, your home loan will be safe. 
Thinking of switching?
If you’re curious about refinancing with a non-major lender, RateCity has made the process easier with its <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>, which will help you refinance to a cheaper rate.
If you have a mortgage with ANZ, Commonwealth Bank, NAB or Westpac, you could save up to $39,000 over 15 years by refinancing during the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
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3 reasons to switch to a non-major lender: RateCity

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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/ratecity-logo.jpg" alt="" width="687" height="184">
SPONSORED POST
If you’re living in a market where property prices have been surging, refinancing could allow you to reduce your gearing level while giving you access to more money.
How? Well, imagine that back in 2014 you borrowed $500,000 to purchase a $600,000 property. Now imagine that your mortgage debt had since fallen to $475,000 while your property’s value had grown to $650,000.
In that case, your equity would’ve risen from $100,000 to $175,000, while your loan-to-valuation ratio (LVR) would’ve fallen from 83 percent to 73 percent. 
If you were to get an updated valuation on your property during the refinancing process, the new lender might respond to your improved financial position by extending you more credit.
In our hypothetical example, the new lender might allow you to stretch your LVR from 73 percent to 80 percent, and therefore allow you to increase your mortgage from $475,000 to $520,000.
Suddenly, you’ve got an extra $45,000 to play with! You could use that money to pay for home renovations, a new car or a holiday. Or you could put it straight into your offset account and potentially access it several years in the future.
Property prices are growing at double-digit rates in four of Australia’s eight capital cities, according to the latest data from CoreLogic.
Sydney’s median price jumped 18.9 percent in the 12 months to 31 March 2017, while Melbourne’s climbed 15.9 percent, Canberra’s 12.8 percent and Hobart’s 10.2 percent. 
Even if you live in one of the other four capital cities, it’s possible that prices in your suburb are recording significant growth or that your suburb’s median price has risen significantly since you purchased your property.
If you want to reduce your debt ratio and unlock equity in your home, you need to refinance.
RateCity is making the process easier with its <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article2&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>, which will allow borrowers to access market-leading rates for their refinance.
Borrowers who are with ANZ, Commonwealth Bank, NAB or Westpac could actually save up to $39,000 over 15 years by switching through the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article2&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article2&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>. 
RateCity then factored in the discharge fees, application fees and ongoing fees to work out the savings over a 15-year loan term.
Some people think of a mortgage as a one-time event – you take out the loan and then stick with it until the bitter end. 
However, smart borrowers regularly refinance, because they know it not only gives them a chance to reduce their repayments, but also lower their LVR and increase their equity.
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The property boom could be the best thing to happen to your mortgage: RateCity

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Retail executive Katie Page has sold her NSW Tweed Coast beachfront investment property.
And just north of the border marketing has kicked off on her Main Beach residential development on the sandy Gold Coast beach.
The Harvey Norman CEO sold the modern Kingscliff home for $2,675,000 through Mason Graham at Coastal Real Estate Group.
Page was one of the first on the exclusive North Point Avenue enclave which fronts the beach, paying $775,000 for the vacant 657 sqm parcel back in 2004.
She commissioned multiple Australian Architect of the Year Virginia Kerridge to design the five bedroom home.
With around 420 sqm living space, there's a private entertaining area with large covered natural timber deck and 12 metre lap pool.
Kerridge used organic materials throughout such as extensive timber flooring and wood panelling.
Sandstone was used for the two-way fireplace and the built-in barbecue.
The parent's retreat comes with extensive custom cabinetry, a dressing room, palatial ensuite and private deck.
North Point Avenue is the millionaire's row of Kingscliff, but ever since the global financial crisis homes have taken a while to shift.
Page waited a patient 320 days on its latest marketing campaign, however since its initial 2008 listing it has spent over 550 days on and off the market.
A few doors along, a four bedroom home with pool has been on the market since October 2015.
Page, who is one of Australia's longest serving CEO's having been at the top at retailer Harvey Norman since 1999, maintains a presence in the NSW north coast.
She holds onto a Suffolk Park beachfront rental that cost $2.5 million in 2006.
Page was clearly impressed with the work done on the Kingscliff beach home as she commissioned Virginia Kerridge to design her exciting new M3565 apartment project at Main Beach.
Recently completed, the seven apartment tower at 3565 Main Beach Parade was built and designed to achieve a 5 Star Green Star rating by Kane Constructions.
It's the first highrise to be completed on the exclusive stretch for almost 30 years.
Each of the six full floor apartment comprises four bedrooms, four bathrooms and 404 sqm. Prices start at $6.2 million through Ray White Prestige agent Robert Graham.
The penthouse is being tipped to set a record price for the popular strip set when $9.2 million was paid by Melbourne businessman Peter Devitt in 2011 for the penthouse in Main Beach’s Liberty Panorama tower.
Spread over two levels, the 611 sqm penthouse comes with rooftop entertaining terrace and pool.
Page paid $15.5 million in 2007 for the 882 sqm block then battled council to secure her construction approvals. 
 
This article first appeared in the Daily Telegraph.
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Katie Page sells NSW Tweed Coast beachfront investment

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

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Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

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The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

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Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

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The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

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Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

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Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

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