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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The New South Wales government has announced, through its development agency UrbanGrowth, that it will assume the role of master developer of the White Bay Power Station site in Sydney’s inner west.
The announcement on Thursday ended a lengthy request-for-proposals process to develop the site as a “tech hub”. Following a spectacular launch event on the site last year, 13 proposals were received from complex consortiums, which reportedly included Lend Lease with anchor tenant Google, and Mirvac with Ecoworld.
On Thursday, NSW Planning Minister Rob Stokes said:
"This will not be an exercise where government hands over large areas of public land and gives away control, without ensuring good outcomes for the community."
While the NSW opposition is crowing about Premier Mike Baird’s “completely bizarre” turnaround, it’s worth considering what UrbanGrowth NSW chairman John Brogden might have meant when he said:
"While some proposals were strong in certain areas, unfortunately there were no complying proposals that addressed the evaluation criteria to achieve the government’s plan for the site."
<h2>What are the grounds for non-compliance?</h2>
So what were these criteria? There are three general evaluation criteria for non-compliance: financial offer; quality of secured tenant; and design.
Across 13 schemes, failure of compliance could have happened in any number of ways. But let’s speculate based on information that is available in the public realm.
Lend Lease’s proposal involved a partnership with Google, one of the most sophisticated tech operators globally. One could assume, then, that compliance failure was not on the grounds of quality of tenant.
Given Lend Lease’s significant experience developing large projects in Australia and internationally, one might also assume that the financial offer, perhaps even in the form of high-density housing as the UrbanGrowth press release suggests, also could not be the grounds for non-compliance.
So by a process of deduction – as good a process as any other given the lack of transparency – we’re left with design as the grounds of non-compliance.
Anyone following the Planning Assessment Commission (PAC) hearings on the proposed casino at Barangaroo will know that this issue – or, rather, the creeping culture of non-compliance of aspects of the project – has dogged the Barangaroo development from the outset.
It is how we find ourselves in a position where the UNESCO-listed Sydney Opera House will now feature, when viewed from the water, the very big casino visible through its sails.
The state government’s taking charge of masterplanning of White Bay, via UrbanGrowth, has to be understood within this context.
And I say that a process of deduction to come to this conclusion is as good as any other process because an incredible lack of transparency characterises all of these projects in the city. A key condition of working with either UrbanGrowth, Lend Lease or the Barangaroo Delivery Authority is the signing of confidentiality clauses.
The sheer scale of these projects in the city right now means that a significant proportion of members of the architecture and planning professions in Sydney are bound to silence. Many of those with a professional responsibility to speak and act in the public interest have been taken out. Those who remain free to speak in the public realm are often ill-informed and, as a result, impotent.
<h2>Now to rebuild trust in public planning</h2>
As a consequence of an environment so poorly informed, the Sydney public is conflating several issues. This was evident in public protests several weeks ago.
The disparate issues include:
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rising concern about council amalgamations and a perception that democratic processes are being restricted;
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<li>
city transformations as a consequence of the lockout laws and their application; and
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<li>
the slow pace of public transport reform and extension, coupled with intensifying congestion in the city.
</li>
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Contributing to the sense of public frustration is the fact that, through the experience of Barangaroo, “there is a deep cynicism across Sydney that proper planning processes have been bypassed in favour of an agreement made behind closed doors", as leading planner John McInerney, the chairman of the local Residents Action Group, told the PAC’s public hearing last month.
“Casino Mike” and his government are right to be listening to their electorate with their change of position on White Bay.
What all of this starts to indicate, and what UrbanGrowth’s taking up of responsibility for the masterplanning of White Bay suggests, is that the private sector in NSW has lost its agency to deliver projects in the public interest. And the state government will be increasingly damaged by this perception.
Globally, many complex government agency delivery vehicles and public-private partnerships are producing very successful urban renewal projects. Examples include Orestad in Copenhagen and Roosevelt Island in New York. We have to be willing to allow government to take up risk again in the public interest, instead of outsourcing all risk to the private sector.
The fact that the state government has stepped in to take back control of the White Bay redevelopment in the face of design non-compliance is actually an amazing story. One would hope this is a process of learning at work.
Tarsha Finney is senior lecturer, School of Architecture, University of Technology Sydney an author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/tarsha-finney-1031" target="_blank">here.</a>
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jchancellor-FAypfDUnLy

White Bay rethink hinges on who looks out for the public interest in remaking Sydney

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GUEST OBSERVER
The Housing Industry Association urges the Federal Government and Opposition to commit to actions targeting housing supply constraints in their election platforms. 
Providing affordable homes to house our growing, ageing and increasingly diverse population requires more than one line references about increasing supply.
Providing affordable homes that cater for families large and small, in capital cities and regional centres, in city centres and their suburbs requires vision and planning.
We don’t have a national housing plan.
Successive Federal Governments have failed to coalesce the roles, responsibilities and endeavours of state, territory and local governments. Governments at all levels, and their well-intentioned agencies, work outside of a national housing strategy. They don’t act in unison, towards a national goal.
It’s like attempting to piece together a jigsaw puzzle without knowing the image or landscape.
With an ageing workforce and mounting pressure on publicly funded services, the Federal Government cannot simply dismiss housing affordability as a supply problem for the states to solve.
An incoming Federal Government must do better. It needs to provide national leadership and vision, and the resources to support better targeted initiatives to increase the supply of both private and public housing.
Committing to a dedicated Federal Minister for Housing, within Cabinet, and establishing a national land planning council to provide national monitoring and reporting of land supply across each stage of the supply pipeline are high on the HIA’s list of imperatives. 
Instigating a holistic inquiry into the added cost of housing caused by taxes, excessive regulations and delays in planning assessments is also a priority for the housing industry. 
Graham Wolfe is chief executive industry policy and media, HIA and can be contacted <a href="https://hia.com.au/en/about.aspx" target="_blank">here</a>. 
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New housing fuels affordability: HIA's Graham Wolfe

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Consumer regulators across Australia are launching a national video campaign against spruikers, who run get-rich-quick seminars.
<a href="https://www.youtube.com/v/srb0wYnyyWI" target="_blank">The national campaign</a>, has been promoted by the likes of Consumer Protection WA.
Its director of property industries Stephen Meahger said spruikers must comply with Australian consumer law.
"We always are concerned in any spruiking when you see a big, glossy ad or a full page ad in the paper that says that it's a free seminar," Mr Meahger told the ABC.
WA spruikers often teach their students how to set up rent-to-buy housing deals, which offers people who do not have a home deposit the option of purchasing a home after paying above-market rent for a set period of time.
Miles Larbey from the Australian Securities and Investments Commission (ASIC) said unscrupulous operators had been put on notice.
"ASIC assesses every report of misconduct it receives about such operators and there are serious consequences for property spruikers who break the law by providing unlicensed financial or credit advice," he said.
"ASIC strongly supports the campaign warning investors about property spruikers."
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Video warning about property spruikers 

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The infamous Bondi hoarders' property was withdrawn from auction last night, in yet another stalled chapter in its 26 year saga.
There were around 10 interested parties expected, but the property was pulled just an hour before its scheduled 6pm auction.
The owner Mary Bobolas had secured a temporary legal stay that stopped any auction.
A $2 million sale had been anticipated due to its prime location and 550 sqm block size.
The <a href="https://www.realestate.com.au/property-house-nsw-bondi-118903099" target="_blank">19 Boonara Avenue</a> offering was listed under instructions of the NSW Sheriff's Office.
It was the third time that the marketing failed to end in an under the hammer sale.
There was an unexpected delay last month with the paperwork not quite right.
Previously the owner Mary Bobolas dodged the sale of the property February last year by coming up with $180,000 to pay Waverley Council's cleaning and legal bills just hours before that scheduled auction.
The drawn out process has seen buyer interest wane as when it was first listed in 2015, 63 contracts had been handed out. Last month it was in the 30s. This time interest was down to around the expected 10 attendees.
They will need to pay a further $160,000 to meet the newest set of cleaning and legal bills.
The council's solicitors wrote to the Bobolas family in November asking for settlement of the outstanding money to avoid the sale but they received no funds.
Raine &amp; Horne agent Ric Serrao was commissioned by the NSW Sheriff's Office to sell the property so that clean-up costs can be recovered on behalf of the council.
Rubbish flowed out of the door and onto the property frontage on the latest listing images despite a 10 truck clear up in July last year.
There were no inspections possible for prospective buyers.
Ric Serrao couldn't even access the property so there were no internal photos or floor plan available.
This article was first published in the Daily Telegraph. 
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Bondi hoarders home auction postponed again

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Despite expectations of steady income and jobs growth in Melbourne, house values are forecast to decline more than 6 percent from the end of 2016 through to early 2020.
However, the declines are likely to be confined mostly to apartments in comparison with detached dwellings, according to CoreLogic-Moody’s Analytics Australia Home Value Index Forecast.
House values in Melbourne reached a new high in April, but the outlook was described as "less positive."
The current momentum will enable values to gain 7.1 percent this year, but the effects of high levels of incoming supply—200,000 dwellings approved for construction from 2013 to 2015—will depress house values through to 2020. 
CoreLogic-Moody’s Analytics Australia Home Value Index Forecast, suggested house values nationwide are expected to rise 6 percent this year and 4.1% in 2017.
Much of this rise will be driven by continued gains in Sydney, where values are forecast to rise 7.3 percent this year, or about half the 14.9 percent rise in 2015.
Melbourne’s market is nearing a peak and could be entering a slump because of high incoming supply.
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Melbourne apartments to bear brunt of price downturn: CoreLogic Moody's

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The Federal Coalition is slowly appreciating that the retrospectivity of their Federal Budget SMSF changes has dire consequences.
The Australian reported the federal government would look at situations where people had entered into binding legal contracts who might be hit by the proposed superannuation changes.
The Assistant Treasurer Kelly O’Dwyer said yesterday there will be a period of consultation to make sure there are no unintended consequences from the legislative changes.
“If someone has made a binding legal agreement before budget night, the government will look at that situation in the design of the legislation.’’
Ms O’Dwyer’s comments came as the superannuation industry expressed concern that some people could have entered into binding legal contracts to buy property through their super fund or made other legal arrangements that would be hit by the budget night imposition of a $500,000 cap on post-tax superannuation.
All the government’s proposed changes to super are scheduled to operate from July 1, 2017, except the $500,000 lifetime cap on post-tax contributions, which applies from May 3, budget night.
Ms O’Dwyer said the government had no intention of backing down and rejected calls by Melbourne barrister Jack Hammond QC that people with existing superannuation accounts should be grandfathered from the negative impacts of the changes.
Off the plan apartment purchases have real concerns, the Henderson Maxwell financial planner Sam Henderson, wrote in today's Australian Financial Review in an answer to a reader question on super.
The question was: My wife (56) and I (63) are the only trustees of our SMSF, which has about $1 million. I'm retired and my wife has just retired to look after six grandchildren. Last year we entered into a contract within the super fund to buy an off-the-plan apartment ($650,000). Our plan was to put more money into super by selling the investment property, and borrowing, say, $200,000. We did this thinking that after renting it out for, say, six years, we would "in-specie" transfer it out of the super fund to ourselves. The building work has started, with estimated completion in early 2018.
The new Liberal budget has thrown a curve ball into the equation. Assuming the Liberals stay in government and the 2007 retrospective $500,000 non-concessional cap is passed, we could be in serious trouble as we are close to the maximum $500,000. If this happens, I see three choices for us: losing the deposit ($65,000) by reneging on the contract; trying to change the contract to buy the apartment outside the SMSF, or trying to get a bigger loan and proceeding with the original idea. If we take the last option, we still lose as we won't have much left in super and no way to put more in if we do the "in specie" transfer. It seemed like a great idea last year, and we did believe the Liberals would not change super as they promised not to. Have you any suggestions or other options for us? Rob
Hendserson's answer was in part: Rob, you're exactly the reason why retrospective legislation should never be enacted. You are also a good example of what can go wrong in an SMSF by purchasing apartments off the plan, despite your best intentions.
Legislation in superannuation is guaranteed to change over time. While super will always remain a concessionally-taxed savings environment and generally a good place to invest, caution needs to be exercised when purchasing assets over a longer time period. 
Your dilemma is a serious one. If you change the contract, you will almost certainly be up for another round of stamp duty for a change of ownership. If you forfeit your deposit, you are creating a loss of 6.5 percent ($65,000 loss of deposit) for your fund. Make sure you do your research to ensure the property will stand on its own two feet at settlement in all markets with a strong and growing rent, which will be a challenge based on these statistics.
One alternative is to lend the money to your super fund rather than use the bank. You simply establish your own limited recourse borrowing arrangement on commercial terms and lend the money to the fund to avoid the use of further bank funding, all assuming the bank will accept that structure which may be a challenge without personal guarantees. But it's worth considering under expert guidance.
Failing that option, you will need to tap the bank for the settlement amount and hope that its lending policy hasn't changed between now and settlement. Banks have been overhauling their investment lending policies in the past few months so jump on the phone and see what they are willing to do.
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Property 101: Dire OTP consequences to Government's Budget super retrospectivity

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The idea of separating out the arms of the “Big Four” banks like insurance and superannuation from their core banking business is gaining traction in Australia.
It featured in the Greens' banking and finance election policy. However this is not a new idea; Australia is just catching up to banking reforms already made by the UK.
The proposals by the Greens are, in international terms, actually quite tame. The Greens talk about “looking at breaking up the banks,” rather than actually breaking them up. They also suggest applying a “tax deductible levy of 0.20% on the asset base of institutions worth greater than $100 billion” on the “too big to fail” Big Four.
Other jurisdictions have gone much further than the Green’s proposals. For example, following the recommendations of the Vickers’ Inquiry into the UK banking system, banks with assets over £25 billion, will be required from 2017 to split off their retail banking activities into separately managed entities that can be floated off, if the holding company goes belly up. Similar rules are also to be enacted throughout the European Union.
Far from local banks being well-regulated, the latest research on managing systemic risk by the Bank of England shows that Australian banks are simultaneously extreme outliers, in regards to size relative to GDP, yet among the lowest of their peers as regards capital requirements. This is extremely risky, especially given the banks’ exposure to the Australian housing market.
The Australian taxpayer is providing a guarantee for such risky behaviour which the Reserve Bank estimates to be worth some $3.5 billion per year to the big four banks.
One of the Green’s proposed considerations is to investigate:
“The nature of vertically integrated business models, including: i. the integration of everyday banking, financial planning, wealth management and insurance within a single entity; ii. whether the incentives provided encourage illegal or unethical conduct; and iii. whether the incentives provided are aligned with the duty of care to customers.”
This term “vertical integration” is a classic illustration of the problems that arise in so-called Universal Banking. The concept of Universal Banking, sometimes called a “financial supermarket”, in which many financial services are sold under the one roof, goes back to the 19th century in Germany.
This is where German banks not only took deposits and made loans, but also funded and even made equity investments in companies. This one-stop shop was credited with helping to make Germany an industrial superpower in the late 19th century.
On the other hand in the UK and USA, there was strict separation of retail banks and so-called investment (or merchant) banks. In the USA, this separation was enshrined in the famous/infamous Glass Steagall Act of 1933 which was an outcome of the Pecora Commission into the Wall Street Crash of 1929.
In the UK, a strict separation lasted until 1984, when the Thatcher government implemented the so-called Big Bang, which broke down the barriers between commercial and merchant banks. Subsequently, there was a massive consolidation of banks, merchant banks and eventually building societies.
US banks, such as Citicorp and JPMorgan, joined in the takeovers of UK firms even though technically it was still forbidden in the USA. However in 1999, after pressure in the industry and with almost unanimous congressional support, the Glass Steagall Act was repealed and the concept of a one-stop shop for financial products became the accepted business model around the world.
In Australia in the year 2000, NAB acquired MLC Life Limited, which was the insurance and investment arm of Lend Lease. Soon afterwards the other big three Australian banks followed suit, acquiring investment firms and insurance companies. For example, Colonial Mutual insurance was acquired by the Commonwealth Bank to become its scandal-ridden CommInsure subsidiary.
The prevailing model of Universal Banking in Australia is barely 15 years old.
<h2>Why did Universal Banking become the accepted model around the world?</h2>
There are two arguments usually put forward for Universal Banking: economies of “scale” and economies of “scope.” The argument for scale is, the bigger a bank is, the better it can leverage its resources, especially expensive technology. The more depositors a bank has the more money it can lend and in a sort of virtuous circle, the more depositors the bank can attract, always provided that the banks treat their depositors fairly, of course.
Scale is important. For comparison, the largest retail bank in the world by market capitalisation is the US based Wells Fargo bank which has some 70 million customers worldwide, mainly in the USA. That is about three times the population of Australia.
Last financial year, Wells declared net income of around A$30 billion (US$ 22.9 billion) which is almost identical to the total declared by the Big Four banks. On a per customer basis then, Wells appears not to be as efficient as Australian banks, or just possibly Australian customers may be getting a very raw dea<a href="https://www.smh.com.au/business/banking-and-finance/banks-fail-to-pass-on-rba-cuts-to-credit-card-customers-20160603-gpb18z">l</a> from their banks.
Economies of scope means that a bank, using its presence in the market, can expand the products it sells to existing and new customers. This so-called cross-selling is infuriatingly obvious in Australian banks.
An example of this is a consumer, when attempting merely to pay in a cheque, can be bombarded with questions about whether they would like insurance with that. It is a form of diversification, expanding and hopefully stabilising sources of income.
In pursuit of scope, the largest Australian banks have all acquired investment management and insurance companies, bundling these acquisitions up into fashionable “Wealth Management” units. According to KPMG, these units provided a 25 percent of the Big Four’s profits in 2015. The problem is that the Big Four banks have proved to be not very good at “wealth management.”
The original reason for diving into the wealth management business was the pot of gold that is Australian superannuation, which is growing year on year through mandatory contributions and today sits at just over A$2 trillion – who could lose? Certainly not the superannuation funds managers.
But could they outperform others? Unfortunately not, as the largest bank-owned retail funds consistently underperform not-for profit industry funds - not really surprising as industry funds operate on a not-for-profit basis.
And all the while, people are deserting the retail sector in droves to run their own Self-Managed Superannuation Funds (SMSFs). In 2016, self-managed assets total some A$592 billion or 30% of the total super pot of just over A$2 trillion, exceeding the retail sector and growing each month.
If the prospect was only ever little more than a pipe-dream, it became a nightmare as pensioners lost their savings in the GFC, created incidentally by banks. And today the prospect of even the middle class living in poverty in retirement has become a reality. In Australia, with the average super balance for men at retirement being just less than $300,000 (much less for women), ASFA, the industry body for super funds, concludes that” many recent retirees will need to substantially rely on the Age Pension in their retirement”.
<h2>Is the rationale for seeking economies of scope still valid?</h2>
Technology has changed everything. In the 20th century, people still went into banks to withdraw or deposit money, to make payments, to ask for a mortgage or to talk about investments.
It was quite possible then for the banks to catch customers at the counter and sell them something they may not want or need but nonetheless may be good for them, like an insurance policy.
But a lot of people don’t go to banks much anymore. They get cash when they check out at the supermarket.
They visit websites or mortgage brokers when they are looking for a mortgage. They search websites that compare deposit and investments offers, and there are a myriad of ways that people can pay bills or make payments for online goods.
People are deserting bank branches for the internet and the importance of face-to face contact and opportunities to cross-sell have diminished.
If there is no pot of gold at the end of the Wealth Management rainbow for banks nor their customers, then the boards of Australian banks must look to strategies other than Universal Banking.
Unfortunately, the subject of banking reform was not addressed fully by the Financial Systems Inquiry, headed as it was by the architect of CommBank’s vertical integration strategy, and the subject has since become a political football.
The Green’s policy would be seen as a minimum and meek in most other jurisdictions, while the industry’s response is shortsighted and defensive. The subject is too important to be trapped in this stalemate.
Pat McConnell is honorary fellow, Macquarie University Applied Finance Centre, Macquarie University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/pat-mcconnell-13137" target="_blank">here</a>.
 
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It’s time we broke up the retail arms of Australia’s Big Four banks

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The Queensland government will impose a 3 percent charge on foreign purchases of houses and apartments.
The extra tax follows Victoria's foreign investor surcharge which was recently increased to 7 percent.
The Baird government is preparing to introduce additional property taxes on foreign investors in its budget on June 21.
The Queensland treasurer Curtis Pitt said foreign investors would now have to pay an additional $10,962 on top of the existing $11,214 in transfer duty for a $365,000 house or apartment.
"This will ensure foreign purchasers of residential property, who benefit from government services and infrastructure, make a contribution to their delivery – as local buyers do," Mr Pitt told the Queensland Media Club in Brisbane on Thursday.
"We welcome mutually beneficial foreign investment. We are confident this surcharge – that does not affect Queenslanders – will also not affect the interest foreign investors have in sharing our state's economic strengths."
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Queensland to tax the foreigners 

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Moody's Investors Service says that signs of a re-acceleration in Australian house prices are credit negative for Australian banks and pose a risk to the economy.
The 2016 spurt had raised the banks' sensitivity to downside risk in the housing market.
"The likelihood of an outright downward correction in prices is rising,” the agency advised.
Moody’s Investors Service viewed loans taken out over 2014-15 as “bearing the most risk, given that they were originated after significant house price appreciation had already occurred”.
While noting strong employment conditions and low interest rates continue to support the quality of the banks' housing portfolios, the household debt/income ratios continue to rise.
Moody's conclusions are contained in its report, "House Price Growth is Increasing Tail Risks for Australian Banks".  
Annual house price growth has risen over the past two months, increasing by 10 percent for the 12 months to May 2016.   Moody's says that there is evidence the banks' appetite for investor lending is returning, after a period of tighter underwriting to comply with the Australian Prudential Regulation Authority's 10 percent annual limit for growth in such loans.  
Moody's points out that over the past month, a number of lenders have lifted their maximum loan to value ratios for investor lending, and there are indications that the banks are becoming more competitive in their pricing for investor loans.  Moody's notes, however, that some of the newer lending activity can be explained by investors bringing their purchase plans forward, ahead of the federal election.  
"These trends are unfolding against a backdrop of already high levels of household indebtedness, and elevated overall leverage in the economy," says Daniel Yu, a Moody's Vice President and Senior Analyst.
"The current trends are therefore credit negative for Australian banks, particularly in the context of the banks' high ratings, because these trends raise the banks' sensitivity to any potential deterioration in the housing market," Yu suggested.
According to Moody's senior vice president Ilya Serov, the housing market in Australia appeared to have accelerated over the past couple of months partly on the back of the cut in interest rates in May.
Mr Serov told he ABC's The World Today investors were exposed if the RBA moves or banks hike rates independently.
"The economy now I think from a household sector is more sensitive to increases in interest rates should they occur," Mr Sherov said.
"We are already in an economy which is characterised by fairly high levels of debt particularly in the household sector and the debt to income ratio which had been stable is now creeping up again."
 
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Moody's concern at 2016 house price re-acceleration

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Canstar advises that five year fixed rates terms can now be found at under 4 percent.
Thanks to the May cut in official cash rate, research and comparison site canstar.com.au advises that borrowers with some equity can now potentially lock in a home loan interst rate of less than 4 percent across all loan terms up to and including 5 year fixed.
“The cash rate is at a historic low and this is fantastic news for home owners wanting to refinance their mortgage,” said Canstar group manager, research &amp; ratings, Mitchell Watson.
“For the first time our database of more than 1,000 home loans is showing advertised interest rates of less than four percent across all loan terms, including 5 year fixed. Prior to the most recent rate cut the lowest 5 year fixed home loan advertised rate on our database was 4.34 percent; it’s now 3.99 percent for owner-occupiers.”
Current highest, lowest and average advertised home loan rates 
<table style="width: 476px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="7" width="0">
Table: Residential Home Loan Market – Snapshot of the current market (3/6/2016)
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
 
</td>
<td width="0">
Standard Variable
</td>
<td width="0">
Package Variable
</td>
<td width="52">
1 Year Fixed
</td>
<td width="0">
3 Year Fixed
</td>
<td width="0">
4 Year Fixed
</td>
<td width="0">
5 Year Fixed
</td>
<td colspan="2" width="0">
 
</td>
</tr>
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<td width="62">
Average
</td>
<td width="0">
4.64%
</td>
<td width="0">
4.35%
</td>
<td width="52">
4.35%
</td>
<td width="0">
4.31%
</td>
<td width="0">
4.66%
</td>
<td width="0">
4.70%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
Min
</td>
<td width="0">
3.59%
</td>
<td width="0">
3.64%
</td>
<td width="52">
3.50%
</td>
<td width="0">
3.74%
</td>
<td width="0">
3.99%
</td>
<td width="0">
3.99%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
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<td width="62">
Max
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<td width="0">
5.84%
</td>
<td width="0">
5.10%
</td>
<td width="52">
5.34%
</td>
<td width="0">
5.24%
</td>
<td width="0">
5.59%
</td>
<td width="0">
5.59%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
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<td colspan="7" width="0">
Source: <a href="https://www.canstar.com.au/" target="_blank">www.canstar.com.au</a>, the search results do not include all home loan providers, and may not include all features relevant to you. Advertised rates of products on CANSTAR database
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
 
</td>
<td width="69">
 
</td>
<td width="0">
 
</td>
<td width="0">
 
</td>
<td width="0">
 
</td>
<td width="0">
 
</td>
<td width="41">
 
</td>
<td width="0">
 
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<td width="12">
 
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Table: Investment Home Loan Market – Snapshot of the current market (3/6/2016)
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<td colspan="2" width="0">
 
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</tr>
<tr>
<td width="62">
 
</td>
<td width="0">
Standard Variable
</td>
<td width="0">
Package Variable
</td>
<td width="52">
1 Year Fixed
</td>
<td width="0">
3 Year Fixed
</td>
<td width="0">
4 Year Fixed
</td>
<td width="0">
5 Year Fixed
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
Average
</td>
<td width="0">
4.86%
</td>
<td width="0">
4.63%
</td>
<td width="52">
4.55%
</td>
<td width="0">
4.53%
</td>
<td width="0">
4.84%
</td>
<td width="0">
4.88%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
Min
</td>
<td width="0">
3.84%
</td>
<td width="0">
3.95%
</td>
<td width="52">
3.59%
</td>
<td width="0">
3.89%
</td>
<td width="0">
4.39%
</td>
<td width="0">
4.49%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td width="62">
Max
</td>
<td width="0">
6.03%
</td>
<td width="0">
5.37%
</td>
<td width="52">
5.34%
</td>
<td width="0">
5.34%
</td>
<td width="0">
5.69%
</td>
<td width="0">
5.69%
</td>
<td colspan="2" width="0">
 
</td>
</tr>
<tr>
<td colspan="7" width="0">
Source: <a href="https://www.canstar.com.au/" target="_blank">www.canstar.com.au</a>, the search results do not include all home loan providers, and may not include all features relevant to you. Advertised rates of products on CANSTAR database
</td>
<td colspan="2" width="0">
 
</td>
</tr>
</tbody></table>
“Investors aren’t quite as lucky, the minimum and average interest rates on offer are higher than for owner-occupiers. Nevertheless there is significant variance between rates on offer – definitely shop around,” said Mr Watson.
You can search for a home loan and <a href="https://www.canstar.com.au/compare/home-loans/?amount=400000&amp;profile=Buying+Next+Home&amp;repayment_type=Principal+%26+Interest&amp;state=NSW&amp;Loan+Type%5B%5D=Fixed+Loan+5yr" target="_blank">compile tables of the lowest-rate home loans on the Canstar database here</a>.
</body></html>

Five year fixed rate terms found under 4 percent: Canstar

The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

Jonathan Chancellor

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