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<div>EXPERT OBSERVER</div>
<div> </div>
<div>As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 1.5% at its July policy meeting. </div>
<div> </div>
<div>The Governor’s decision statement was a little less positive on the global front, and acknowledged uncertainty around the rise in Australia’s short term wholesale interest rates, but retained the core view of growth averaging a bit above 3% a year and an eventual lift in inflation.</div>
<div> </div>
<div>The closing paragraph of the statement was unchanged, retaining the key line that, “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”</div>
<div> </div>
<div>Commentary on the global economy was a little more mixed.</div>
<div> </div>
<div>Last month’s assessment that “The global economy has strengthened over the past year” was replaced with “The global economic expansion is continuing” – suggesting the pace is no longer accelerating.</div>
<div> </div>
<div>The picture is still broadly positive although uncertainties around trade policy and strains in a few emerging markets were again noted.</div>
<div> </div>
<div>The Governor’s comments on short term interest rates were amended as expected.</div>
<div> </div>
<div>Whereas last month the rise in Australian short term rates was ascribed to conditions in the US, this month’s statement acknowledges it is now only partly due to developments in the US with “other factors at work as well” and that “it remains to be seen the extent to which these factors persist”.</div>
<div> </div>
<div>The statement clearly needed to comment on this issue but has done so in a way that reveals very little about the Board’s thinking.</div>
<div> </div>
<div>If anything, the wording, position of the comment in the statement, and other comments about wider financial conditions (“Australian dollar has depreciated a little”; “the average mortgage interest rates on outstanding loans has been declining”) imply it is not overly concerned (at this stage).</div>
<div> </div>
<div>The local data flow continues to be in line with the RBA’s growth view, the strong March quarter GDP result and continued pick up in non-mining business investment noted, as well as the strength in public infrastructure.</div>
<div> </div>
<div>Households are again cited as a source of uncertainty.</div>
<div> </div>
<div>The Governor’s statement was more forthright about prospects for jobs and wages growth, asserting up front that “the outlook for the labour market remains positive”.</div>
<div> </div>
<div>That compares to the more nuanced, and seemingly tentative, discussion in the June decision statement although the observations in both are broadly the same (“forward looking indicators continue to point to solid growth in employment”; “unemployment steady at around 5½% for much of the past year”; “wages growth remains low” but “appears to have troughed”).</div>
<div> </div>
<div>The wording around skill shortages was a little firmer ("increasing reports ... in some areas").</div>
<div> </div>
<div>There was a notable, but secondary, shift in the language about the exchange rate with the July statement dropping the comment that “an appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.”</div>
<div> </div>
<div>This line has been included in some shape or form in every Governor’s statement since March 2016. The implication is that the Bank is less wary of a rising Australian dollar disrupting the outlook with the currency at 74c vs 80c at the start of the year.</div>
<div> </div>
<div>Notably the comment was first introduced in the context of the economy’s wider transition through the wind down in the mining investment boom, a transition the RBA may now view as largely complete.</div>
<div> </div>
<div>On housing the Governor’s statement notes prices are declining in both the Sydney and Melbourne markets but with national measures "little changed" over the last six months.</div>
<div> </div>
<div>APRA’s supervisory measures are again seen as having helped contain the build-up of risk.</div>
<div> </div>
<div>The Governor seems a little less concerned about a further tightening of lending standards by banks, which is viewed as “possible” and set against the observation that average mortgage rates on outstanding loans have declined.</div>
<div> </div>
<div>Again, this remains a 'watch this space' issue.</div>
<div><strong> </strong></div>
<div>Concluding, while there were again several points of interest, the July decision statement showed little substantive change.</div>
<div> </div>
<div>The RBA still looks to be firmly on hold and prepared for a long wait.</div>
<div> </div>
<div>The minutes should reveal more about the Board’s deliberations, the discussion of short term wholesale interest rates will be of particular interest as well as the risks around a further tightening in lending standards.</div>
<div> </div>
<div>However, there’s unlikely to be any shift in rhetoric from the RBA any time soon.</div>
<div> </div>
<div>We at Westpac confirm our long held view that the official cash rate will remain unchanged throughout 2018 and 2019.</div>
<div> </div>
<div><em>Matthew Hassan is a senior economist with Westpac</em></div>
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Matthew_Hassan-HHWHptmrw4

RBA Governor foresees further tightening of lending standards by banks: Matthew Hassan

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<p>EXPERT OBSERVER</p>
<p>Since the housing market’s September peak, the 2% slip in national prices has surpassed the minor correction in 2015-16 that marred the otherwise multi-year upswing since 2012.  <br><br>Unsurprisingly, Australia’s long-treasured dinner party conversation topic is starting to generate more nervous chatter.  <br><br>Firstly, the good news: the rate of decline has moderated a little in the last three months.</p>
<p>The bad?</p>
<p>Buyer sentiment may be showing tentative signs of levelling out but is still not particularly promising, turnover remains near record lows and auction clearance rates are again falling in Sydney and Melbourne.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank">Click here to enlarge.</a></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank"><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/2018/6/19/ride.jpg" alt=""></a><br><br>If it’s any comfort, it’s worth remembering the 2% national decline from the peak remains shallow by historical standards and the declines are narrowly based.</p>
<p>With Sydney leading the decline with a 4.5% fall from the peak, it looks similar to the mid–2000s when the Sydney market experienced a downturn that mostly bypassed other markets, rather than the broader corrections seen during prior major interest rate tightening cycles, such as the mid-1990s.<a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank"></a></p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-australian-dwelling-prices.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-australian-dwelling-prices.png"></p>
<p>Breaking it down further based on our preferred basis – the CoreLogic hedonic series – shows that a third of all properties are recording annual price declines, with just under 6% recording falls greater than 5%.As our May <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2018/May/WestpacHousingPulseMay2018.pdf" target="_blank" data-s-object-id="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/australia/2018/may/westpachousingpu_1">Housing Pulse</a> report shows, these falls compare to the more substantial house price corrections in 1994–96, 2004, 2008–09 and 2010–12 when more than half of all properties recorded annual price declines.<br><br>Conditions across the country of course vary widely.<br><br>In NSW, the largest state economy where prices rose the strongest in the recent boom years, slightly more than 25% of properties are now experiencing falls compared to none six months ago, representing the biggest rise in the incidence of price declines since September. What bears watching is whether the price falls spread beyond the middle and “top tier” houses, given several other Sydney segments are on the cusp of declines.<br><br>Victoria is performing better. Only one segment – Melbourne “top tier” houses – are recording declines, accounting for 12% of all properties in the state.</p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-share-of-dwellings-by-price.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-share-of-dwellings-by-price.png"></p>
<p><br>Although not driving the national correction, the mining states are still doing it relatively tough. Nearly 40% of Queensland properties are seeing annual price falls, while in Western Australia the entire state continues to suffer price declines. However, WA’s tentative housing recovery out of the state’s broader recession in recent years looks to be coming through with price slippage moderating and turnover finally lifting.<br><br>Elsewhere, trends are mixed as the rising Tasmanian market experiences virtually no housing segments recording price falls and the South Australian market recording a lift in the incidence of price declines since 2017.<br><br>All this feeds into our view that the housing correction is stabilising but susceptible to deteriorating. One thing to watch closely will be the impact of the banking regulator’s prudential policy measures, given the latest guidance points to some further “micro–prudential” tightening in credit conditions in coming months even as some “macro prudential” limits on lending to investors are removed.</p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-macro-prudential-targets.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-macro-prudential-targets.png"></p>
<p><br>Also, the Reserve Bank estimates that $120 billion of interest only loans are set to roll over to principle and interest terms each year for the next three years. While the RBA suggests this should be a reasonably comfortably transition, there’s the risk of a further weakening in housing markets if it’s not.<br><br>More generally, a thin market with low levels of turnover and persistent price slippage is likely to be more susceptible to shocks, buyer sentiment may have improved on a year ago but a loss of confidence from here would be a cause for concern.<br><br>The chances of discussion about the housing market dying down at the dinner table and everywhere else any time soon appear very low.<br><br><em><strong>Matthew Hassan</strong> is a senior economist at Westpac.</em></p>
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National house price drop surpasses 2012 correction: Westpac's Matthew Hassan

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<p>EXPERT OBSERVATION</p>
<p>Australian housing finance approvals were a touch firmer than expected in April, the number of owner occupier loans down just 1.4% vs expectations of a slightly larger 1.8% decline.</p>
<p>The value of investor loans recorded a 0.9% dip, much milder than March's 9% drop. Despite this, conditions were soft across most of the detail.</p>
<p>The number of new owner occupier approvals, i.e. excluding refinancing, was more in line with consensus, with a 1.9% decline in April taking approvals down 4.4%yr.</p>
<p>The total value of housing finance approvals, including investors but including owner occupier refi, dipped 0.4%mth to be down 5.8%yr (estimates excluding investor refi look to be down about 6.7%yr). Stepping back, the peak to trough move in the value of new finance approvals looks to be a fall of about 10%, roughly on a par with the 2015-16 pull back.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/6/13/finance%20approvals.jpg" target="_blank">to enlarge.</a></p>
<p><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/2018/6/13/finance%20approvals.jpg" alt=""></p>
<p>The number of owner occupier construction approvals dipped 0.2% to be down 5.7%yr. The number of owner occupier approvals for the purchase of newly built dwellings fell 3.7%mth but is still up 2.9%yr. On a combined basis, construction-related approvals were down 1.4%mth, –2.9%yr.</p>
<p>The number of approvals to first home buyers (FHBs) continues to ease back from recent highs, declining 1.6%mth. Although approvals are still up 24%yr, they are now 10% off their Nov peak. Activity in this segment has been boosted by increased assistance from state governments in NSW and Vic – measures that in the past have typically generated a significant pull forward in activity that subsequently falls away.</p>
<p>The state breakdown had more detail than usual this month due to the timing of the release which coincided with the release of state lending data for investor loans. The combined figures shows the biggest annual declines in the total value of approvals (incl. investor loans but excl. owner occupier refi) have been in WA (–8.8%yr), NSW (–6%yr) and Qld (–6%yr) with a milder 2.9%yr fall in SA. Vic has seen a slight gain (+1.9%yr) while Tasmania has bucked the national trend with a strong surge (+15.4%yr).</p>
<p>More recent data, from auction markets in particular, suggest housing market conditions have seen a further weakening since April likely reflecting tighter lending criteria. With more stringent assessments also likely to delay loan processing, finance approvals could see a more significant decline in the next few months.</p>
<p><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Housing finance approvals dip in May: Westpac

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<p>EXPERT OBSERVATION</p>
<p>After holding relatively steady through most of 2017 and early 2018, Australian housing finance approvals showed a notable pull back in the March month. The total number of owner occupier approvals declined 2.2% to be down 3.5%yr – below market expectations of a 1.5% fall but a touch better than industry figures that had pointed to a 3% decline.</p>
<p>The real weakness was around the value of investor approvals which dropped 9%mth to be down 16.1%yr. Estimates of investor approvals ex refi are down over 26%yr and just over 30% vs their 2016 peak. That puts the 2017-18 slowdown on a par with that seen in response to the macro-prudential tightening in 2015-16.</p>
<p>Combined, the total value of approvals ex refi fell 4.6%mth to be down 6%yr.</p>
<p>The detail on owner-occupiers showed a broad based decline.</p>
<p>The number of owner occupier construction approvals fell 4.4%mth to be down 4.3% on a year ago and 11% over the last two months alone. The number of owner occupier approvals for the purchase of newly built dwellings declined 1.4%mth but is still up over 5% on a year ago.</p>
<p>The number of approvals to first home buyers (FHBs) fell 4.6%mth but is still up 25%yr due to strong demand in NSW and Vic where state governments have increased assistance for first time buyers. The decline suggests the peak of this boost is starting to cycle through.</p>
<p>The state data showed owner occupier approvals ex refi down in most major states, the biggest fall in SA (–9%mth) with more modest declines in NSW (–2.6%), Vic (–1.6%) and Qld (–1.1%). WA (1.2%) and Tas (+1.5%) recorded slight gains. Owner occupier finance approvals ex refi are down on a year ago basis for every major state except Vic (–2.8%).<br>Other, more recent, housing data suggests there has been a slight further softening in auction markets in April-May with price growth continuing to slow, in Melbourne in particular.</p>
<p>Overall, the March update points to a renewed weakening in demand. More slippage looks likely near term as lenders tighten loan criteria and borrowing capacity assessments – with more stringent assessments also potentially slowing loan processing times. Notably, the average value of owner occupier loans rose in the month and over the year to March, suggesting the softening in approvals to date does not reflect a tightening in borrowing capacity (although this may have been a factor in the investor loan decline).</p>
<p>To read the full report, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2018/May/er20180511BullHousingFinanceMar.pdf" target="_blank">click here.</a></p>
<p><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Australian housing finance approvals pull back: Westpac

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<p>Australia's housing markets continue to see price slippage in early 2018. The CoreLogic home value index, covering the eight major capital cities, dipped another 0.2% in March, the fifth consecutive monthly decline with prices nationally now down 1.4% from their Oct peak. Annual price growth slowed to 0.8%, a new low since the price correction in 2011-12. Note that data updates are now clear of holiday distortions with seasonal factors essentially neutral in the March month.</p>
<p dir="LTR" align="LEFT">The dwelling-type breakdown continues to show more pronounced weakness for houses, prices down 0.2% in the month and barely up 0.2%yr. Unit prices were again flat nationally in March with annual price growth somewhat firmer at 2.6%yr.</p>
<p dir="LTR" align="LEFT">Price weakness continues to be concentrated in Sydney, where the annual rate of decline dropped to –2.1%yr after dipping into negative last month. The detail shows the epicentre of the slowdown is houses (–3.8%yr) and particularly those in the upper end of the market, (–6.5%yr for the top 25% of properties by value). Note that these segments outperformed significantly through the upturn with prices still showing better gains over the last two years than the wider market. Sydney unit prices have been much firmer across the board annual price growth remaining positive.</p>
<p dir="LTR" align="LEFT">Melbourne is starting to see a more material slowing although at 5.3%yr, annual price growth remains comfortably above that in the other major markets. Price growth remains particularly strong at the lower end of the Melbourne market (+12.9%yr for the bottom 25% of properties by value).</p>
<p dir="LTR" align="LEFT">Price growth was coming from much weaker starting points across the other capital cities and showed more muted slowdowns in 2017. Annual price growth has dipped back to 1.3%yr in Brisbane and 1.7%yr in Adelaide. The pace of price declines has eased a touch to 2.4%yr in Perth although stabilisation remains elusive.</p>
<p dir="LTR" align="LEFT"><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/2018/4/4/DWELLING%201.jpg" alt=""></p>
<p dir="LTR" align="LEFT">Performances vary widely across the smaller capitals, Hobart posting a strong 13%yr gain but price gains more moderate in Canberra (+2.9%yr) and struggling to pull out of a sharp multi-year correction in Darwin (+1%mth but down –7.5%yr). Regional areas have been uneven as well, posting 4-5%yr price gains in NSW, Vic and Tas but about flat in Qld, dipping in SA and falling at a 5%yr pace in regional WA.</p>
<p dir="LTR" align="LEFT"><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/2018/4/4/DWELLING%202.jpg" alt=""></p>
<p dir="LTR" align="LEFT">Overall, the March update is another soft read. While the pace of declines nationally may not be accelerating there are few convincing signs that they are moderating.   Indeed, if anything there are signs that price slippage may be extending to a broader range of markets.</p>
<p dir="LTR" align="LEFT"><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/2018/4/4/DWELLING%203.jpg" alt=""> </p>
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Australian dwelling price slippage continues

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<p>As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 1.5% at its February Board meeting. The Governor’s decision statement indicates that the Bank’s central forecasts for growth and inflation remain unchanged and emphasises that the Board will be patient in assessing progress. Policy is firmly on hold.</p>
<p>The most substantive change is an additional line given prominence in the concluding paragraph stating that: “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.” The clear message is that the Bank will not pre-empt things – it is prepared to wait for an improvement in actual conditions to come through before contemplating any changes.</p>
<p>Elsewhere in the statement, the Bank indicates its forecasts are unchanged with growth “to average a bit above 3 per cent” and CPI inflation “to be a bit above 2 per cent in 2018”. Note that the Bank’s current forecasts, from the November Statement on Monetary, have real GDP growth lifting to 3¼% in 2018 and headline CPI inflation lifting to 2¼% (but underlying inflation holding at 1¾%). The Bank will release updated forecasts with the February Statement on Monetary Policy on Friday.</p>
<p>As expected, the Governor’s statement acknowledged the more positive tone from abroad and from some of the domestic data. The global backdrop is now described as a “broad-based pick-up”. China’s growth is described as solid with what seems to be a more positive take on risks (“authorities paying increased attention to the risks in the financial sector and the sustainability of growth”). Global inflation remains low but is now viewed as likely to “increase over the next couple of years”.</p>
<p>On the domestic economy, comments are more mixed with data over the summer viewed as consistent with the Bank’s forecast for growth to pick up but household consumption a “continuing source of uncertainty” given weak growth in household incomes and high debt levels. Commentary around the labour market is largely unchanged from December – strong job gains in 2017 and indicators pointing to solid growth ahead but wages growth low and likely to stay low for a while yet. A new comment that the Bank expects “a further gradual reduction in the unemployment rate” is consistent with its November forecasts but again places the emphasis on shifts being slow to come through.</p>
<p>This slowness is also emphasised in an additional comment on inflation, which is seen as “likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing”.</p>
<p>Wording on the Australian dollar was unchanged except for a slight qualifier that the view “it remains within the range that it has been in over the past two years” is on a trade-weighted basis. With the AUD/USD cross retracing sharply in recent sessions (currently back to 0.786 USD from well over 0.800 USD) the need to bolster their rhetoric has faded.</p>
<p>Lastly, the Bank again notes that “housing prices are little changed over the past six months” but adds that prices have “recorded falls in some areas” – a slight contrast to the December statement which instead noted “conditions have eased in Sydney” and gave a little less prominence to the observation.</p>
<p>Conclusion</p>
<p>Overall, the February decision and Governor’s statement contained few surprises. The Bank continues to expect a lift in growth and inflation over coming years and, with the improvement expected to be gradual, is signalling that it is prepared to be patient in assessing how conditions are evolving.</p>
<p>The RBA’s ‘patient approach’ ensures policy will remain on hold over the first half of 2018. Westpac continues to see a more challenging year ahead for the Australian consumer and another sub-par year for wider economic growth. As such we continue to expect rates to stay on hold through the remainder of 2018 and in 2019.</p>
<p>Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</p>
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RBA's patient approach will see rates on hold through to 2019: Matthew Hassan

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<p>GUEST OBSERVER</p>
<p>The CoreLogic home value index held flat in October taking annual growth to 7%, an abrupt slowdown from the 11.4% peak in May.</p>
<p>Policy measures continue to have a material impact. Although official rates remain near historic lows, regulators introduced a new round of 'macro prudential' tightening measures in late March.</p>
<p>Meanwhile a range of other changes have also seen a progressive tightening of conditions facing foreign buyers.</p>
<p>The CoreLogic indexes were overhauled in August and now provide a much better guide to price changes.</p>
<p>Whereas previously it would take three to six months and/or multiple measures to confirm a market shift, the new series appear to give much cleaner signals month to month and are now the clear 'benchmark' for Australian dwelling prices.</p>
<p>For October, the signals are unambiguously soft. Our estimates suggest the last three months have seen a small dip declining at about a 0.9% annual pace in seasonally adjusted terms (note that the Aug-Sep-Oct period typically sees some firming in prices as the spring selling period begins).</p>
<p>Sydney continues to record the sharpest turnaround in conditions, annual price growth slowing to 7.7% in October, essentially halving since July. Melbourne continues to see a much milder turn with price growth still tracking at 11%.</p>
<p>Price growth remains steady but more subdued elsewhere; tracking at 2.7% in Brisbane; and 4.6% in Adelaide with price continuing so slip lower in Perth (–2.5%).</p>
<p>The houses vs units breakdown shows a more pronounced slowdown for houses with annual price growth slowing to 7.2% from 12.4% in May.</p>
<p>Our monthly seasonally adjusted estimates suggest prices have been declining at about a 2% annualised pace over the last three months.</p>
<p>Unit price growth has been more stable throughout, lower through the peak and with a milder slowdown – annual price growth 6.5% down only slightly since the 8.5% peak in July and momentum holding in positive territory over the last three months. </p>
<p>Notably, the detail suggests the pace of unit price declines in Brisbane and Perth is moderating while price growth in Melbourne units has shown essentially no slowing to date.</p>
<p>The slowdown is likely to carry through to year end. However, the next few months will be a critical gauge of whether markets are starting to stabilise.</p>
<p>To date, the timeliest market measures – buyer sentiment, auction clearance rates and prices – are showing few signs of levelling out. However, some of the pressure from macro-prudential measures may ease off a little.</p>
<p>Click here to read the <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2017/October/er20171101BullDwellPricesOct.pdf" target="_blank">full report</a>.</p>
<p>Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</p>
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Home values flat in October: Westpac's Matt Hassan

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<p>While Australian consumer sentiment has recovered in recent months, views around family finances remain a stand out weak spot. In particular, the ‘finances, last 12mths’ sub-index is down 6.1% vs a year ago and well below long run average levels.</p>
<p>These readings are of real concern.</p>
<p>This backward looking component is already known to have close links with actual spending – something the RBA has noted in the past. Westpac’s latest analysis also confirms the component contains genuine information about current finances.</p>
<p>The ‘finances, last 12mths’  sub-index is closely correlated with growth in labour income, disposable income (i.e. all income after tax and interest) and household net worth with correlations evident at both the national and state level.</p>
<p>The chart below shows how the sub-index tracks vs a combined measure of household finances.</p>
<p>Current readings point to significant added pressure on finances over the last 6mths – our combined per capita measure essentially stalling flat.</p>
<p>Aside from weak wages growth and slowing housing markets, higher mortgage rates for ‘interest only’ and investor loans and associated switching to loans with higher monthly repayments may be impacting.</p>
<p>While some of these drags will dissipate the wider picture suggests family finances will remain under pressure heading into 2018.</p>
<p>Read the full report:<span class="Apple-converted-space"> </span><a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2017/October/WestpacRedBookOctober2017.pdf" target="_blank">Westpac Red Book October 2017</a>.</p>
<p><a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/The_Red_Book/Red_Book_bites/Redbook-bite-20171023-4.jpg" target="_blank">Click to enlarge</a></p>
<p> <img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/The_Red_Book/Red_Book_bites/Redbook-bite-20171023-4.jpg" alt=""></p>
<p> </p>
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Why weak sentiment detail around family finances is a real concern: Matthew Hassan

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<p>GUEST OBSERVER</p>
<p>Approvals dipped 1.7% in July, the pull-back from June’s 11.7% jump much milder than expected (market forecast was –5%, Westpac –4%).<br><br>The detail even showed a further small rise in high rise approvals (about 4%) which had been a big driver of the June gain (up about 15%mth).</p>
<p>Non high rise approvals look to have pulled back about 3% from an 8.7% gain in June with private house approvals holding flat showed more Mid-rise approvals look to have pulled back while detached house approvals were flat.</p>
<p>Note that this is broadly consistent with construction related finance approvals which have shown a clear firming in recent months.</p>
<p>By state, a solid gain in NSW was offset by declines elsewhere. <br><span><br>Details</span> <br>Private houses  flat%mth, 2.3%yr<br>Private 'units'    –6.7%mth, –29.5%yr     </p>
<p>NSW     1.5%mth, –15.9%yr<br>Vic       –0.3%mth, –7.8%yr<br>Qld       –2.6%mth, –20.1%yr<br>WA       –11.1%mth, –21%yr<br>SA        0.3%mth, 6.3%yr          </p>
<p>Alteration &amp; additions^   –5.3%mth, 4.3%yr<br>Non-residential^             2.4%mth, 19%yr<br>^ value  </p>
<p> </p>
<p><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Australian dwelling approvals dipped in July: Matthew Hassan

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<p>GUEST OBSERVER</p>
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<p>Australian housing finance approvals to owner occupiers edged up 0.5% in June, undershooting market expectations of a 1.5% gain. The total number of approvals is down 4%yr.</p>
<p>The picture was ex-refinancing was more in line with expectations with a 1.9% gain to be up 3.4%yr.</p>
<p>Note that the macro prudential tightening measures introduced in late March and associated increases in increase rates for investor and 'interest only' loans have likely given indirect support to owner occupier loan activity.</p>
<p>That said, the value of investor loans was stronger than expected, posting a 1.6% gain to be up 5.7%yr. The total value of loans was up 0.8%mth – ex refi up 1.5%mth, 7.1%yr.</p>
<p>Note that a second round of mortgage rate increases for 'interest only' loans came through late in the month and is likely to impact in coming months.</p>
<p>The state detail is of limited use as investor loans are not split out in this release.</p>
<p>However a notable point in the loan type detail is the continued surge in construction-related finance approvals – finance for construction up 3.6%mth and finance for the purchase of newly built dwellings (which includes for settlement of ‘off the plan’ apartment purchases) up 3.5%mth. The former suggests non high rise construction is likely to lift while the latter is likely related to the wave of high rise apartment completions.</p>
<p>Overall, the numbers will be disappointing for regulators looking for a more material slowing in investor activity although the full impact of macroprudential measures has yet to come through.</p>
<p><span>Details</span><br>Owner–occupiers (no.) 0.5%mth, –4%yr</p>
<p>– ex-financing (no.) 1.9%mth, 3.4%yr</p>
<p>Construction of dwellings (no.) 3.6%mth, 8.9%yr</p>
<p>Purchase of newly built dwellings (no.) 3.5%mth, 10.2%yr</p>
<p>Value of loans:</p>
<p>Owner-occupiers ($bn) 0.3%mth, 1.2%yr</p>
<p>Investors ($bn) 1.6%mth, 5.7%yr</p>
<p>Total ($bn) 0.8%mth, 2.9%yr</p>
<p>Total ex refi ($bn) 1.5%mth, 7.1%yr</p>
<p> </p>
<p><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Housing finance approvals to owner occupiers edged up in June

<p><a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.</p>

<p>A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.</p>

<p>Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360965]</p>

<p>“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.</p>

<p>From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.</p>

<p>The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360981]</p>

<p>Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.</p>

<p>A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.</p>

<p>Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360966]</p>

<p>Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.</p>

<p>“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.</p>

<p>Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360969]</p>

<p>Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.</p>

<p data-end="8307" data-start="8063">The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.</p>

<p data-end="8543" data-start="8312">“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”</p>

<p data-end="8915" data-start="8548">The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.</p>

<p>The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.</p>

<p>[smartcode_project_cta:default project_id=149670]</p>


Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

<p>A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.</p>

<p>The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.</p>

<p>Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.</p>

<p>The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.</p>

<p>The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.</p>

<p><img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" /></p>

<p>Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.</p>

<p>Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.</p>

<p>The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."</p>

<p>The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.</p>

<p><img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" /></p>

<p>Campbelltown has been starved of new residential developments in the last decade.</p>

<p>The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.</p>


First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

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</p>

<p>A 60-apartment building nine storeys tall would be a rarity almost anywhere along this stretch of Moreton Bay, but that's exactly what's been lodged for a modest Deception Bay street better known for its single-storey weatherboard homes.</p>

<p><a href="https://www.apartments.com.au/developers/sherlock-construction-homes">Sherlock Construction Homes</a> is seeking to push Deception Bay’s emerging medium-density housing profile higher, lodging plans for a nine-storey apartment building near the suburb’s shopping centre and foreshore.</p>

<p>Dubbed Grosvenor Apartments, the proposal at 14-20 Grosvenor Terrace would replace two detached homes with a new building designed by&nbsp;<a href="https://www.apartments.com.au/architects/mode">Mode Design</a>&nbsp;which would&nbsp;reach nearly 30 metres, well above the site’s mapped 21-metre building height.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="86c21a25-5a97-4ca7-a361-80757137ea5b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%20front.png?VersionId=aXIujfvEhH33sLHOEjHFv9Ii6qxSvAF4" /></p>

<p>The apartment mix is weighted toward larger homes, with 14 three-bedroom apartments, 31 two-bedroom apartments and 15 one-bedroom apartments. Six apartment types are spread across the floors, ranging from 66 sqm one-bedroom units through to three-bedroom apartments of 116 sqm, most with private balconies or terraces.</p>

<p>Levels one through seven follow a consistent layout of six to eight apartments per floor arranged around a central lift and stair core, with the top floor, level eight, trading one apartment for a landscaped community breakout space rather than repeating the standard layout below.</p>

<p>Ground floor is dedicated to arrival and services, with a lobby, mailroom and manager's office, alongside 91 car spaces.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="b098bde0-5fe1-4e6c-9601-e5446612e5fc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20podium.png?VersionId=A0hfENMNxSxkfh9Jl6D4WJ9XIraeOukA" /></p>

<p>Mode Design's brief describes a "serene coastal-inspired design blending soft curves, natural textures and light-filled spaces to reflect the relaxed Deception Bay lifestyle."&nbsp;</p>

<p>The material palette leans on white and grey render, timber-look aluminium screening and stacked-brick-look finishes, with hanging greenery and vine planting proposed across balcony edges and ground-level walls.&nbsp;</p>

<p>Balconies feature asymmetrical geometries intended to vary the building's rhythm rather than repeat a single module up the tower, while lush planting is concentrated over the entry and level one balconies to soften the building's base.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="c05c5693-3e00-42d0-b075-55c36094f4db" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%201.png?VersionId=cMKJgBsBaaVCd2dA5O22SOT38OT_.BPA" /></p>

<p>The design evolved following an April 2025 prelodgement meeting with council. At that stage, the project was conceived as a seven-storey building containing 45 apartments. The subsequently lodged scheme increases the development to nine storeys and 60 apartments while introducing one-bedroom residences to the mix.</p>

<p>Zone Planning argues the additional scale reflects the site's position within an area earmarked for increased residential intensity. The planning report points to the North Lakes-Redcliffe-Moreton Bay Rail corridor strategy, which identifies Deception Bay as a district-level activity centre and supports greater housing choice within urban neighbourhoods.</p>

<p>Market Square Deception Bay, Deception Bay Sports Centre, Deception Bay State School, public transport, community facilities and the Moreton Bay foreshore are all identified within approximately one kilometre of the site, while the property falls within a 400-metre walking catchment of Market Square.</p>

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


First look at MAYD's North Kirra mixed-use precinct

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<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Matthew Hassan

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