<html><body>
In the first sign of the impact of tighter lending practices by banks, investor loans showed a sharp 6 percent drop in value in February, along with a fall in home loan demand, according to a senior economist with a leading bank. 
New data from the Australian Bureau of Statistics show that not only the number of new loans ease modestly in the February, but the value of all loans also fell, said Savanth Sebastian, senior economist at CommSec.
The Real Estate Institute of Australia (REIA) also confirmed the view, saying the latest ABS data shows finance approvals for investor housing is moderating.
“The value of investment housing commitments increased by a modest 0.7 per cent in February in trend terms and decreased by 5.9 per cent in seasonally adjusted terms. This is down from its 2015 peak”, REIA president Malcolm Gunning said.
“It is still early days but data over the next couple of months will be more telling,” added Sebastian on the fall in investor borrowings.  
All the major banks have put brakes on investor loans or refinancing of investment property mortgages, in addition to higher interest rates for investors, in line with the prudential regulator APRA’s guidelines to cool a heated property market. 
“The average loan size recorded a fall of almost $10,000 in February. In fact over the past two months the average loan balance has fallen by over $22,000 or 6.2 per cent,” said Sebastian.  
“The recent shift by the banking sector in regards to loan serviceability may have played a part. It should be noted that the average home loan is also influenced by home prices, composition of borrowers and the geographic location of home purchases.”
He said the Reserve Bank was correct in its view that conditions in the housing market are very mixed. There is a healthy pipeline of work, with owner occupiers likely to dominate home building and buying. The value of loans to build new homes stood at a just under $2.9 billion – easing modestly from the record high of $3.3 billion in March 2016. 
The latest Housing Finance data found 54,816 home loans were written throughout the month of February, down from 55,099 written the month prior.
“After three consecutive months of growth in home loan approval numbers, we saw a decrease in February,” said Mortgage Choice chief executive John Flavell.
But he added that January and December are “notoriously strong months” in terms of home loan demand and there is generally a drop off in home loan approvals come February.
In February 2017, $32.9 billion worth of home loans were approved, down 2.7% on the previous month, but up 0.3% on February 2016.
Of the $32.9 billion worth of home loans approved over the month of February, $19.9 billion were for owner-occupied loans, while $12.9 billion were for investment purposes.
Looking ahead, Flavell said recent investment policy and pricing changes by many of Australia’s lenders could cause this type of home loan demand to tumble. 
“Over the coming months, we expect to see lending for investment housing to decrease because a lot of Australia’s lenders are making changes in this space,” he said.
“In recent weeks, we have seen a number of lenders tweak their investment pricing, with some increasing their interest rates by as much as 39 basis points across some of the investment products."
In addition, some lenders have removed themselves from the investment lending space altogether, whilst others have tweaked their policy and made it clear that they will only lend to certain types of investor customers, he added.
"All of these changes will ultimately have an impact on the level of investment activity and investment loan approvals,” said Flavell.
</body></html>

prateek24-ezbwHMbNAk

Bank tightening sees investor loans fall a sharp 6 percent in February: ABS data

<html><body>
Home ownership among Australian millennials is among the lowest, with less than a third (28 percent) owning one, with a majority citing high property prices as a major barrier, says a new survey by HSBC.
The findings are contained in HSBC’s report, ‘Beyond the Bricks’, and comes just a month ahead of the May budget when the government is expected to reveal a housing affordability package.  
Other findings of the survey, which was conducted in nine countries, reveal that 83 percent of Australian millennials intend to buy a home in the next five years. It found that while Australian millennials’ desire to own a home was no different from their global counterparts, the barriers to home ownership in Australia were higher.
Three quarters (75 percent) of Australian millennials say the challenge of saving for the deposit for a home loan is their biggest barrier, but only 17 percent of Australian millennials intending to buy a home have a precise budget. 
Additionally, 45 percent of Australian millennials who do own their own home say they have overspent on their original budget, showing that many are not prepared for the realities of owning real estate in Australia.  
“The deposit for a home loan is the biggest initial cost of owning a home, but buyers also need to factor in the costs of stamp duty, legal fees, mortgage insurance, building inspection fees and in some cases renovation costs,” said Alice Del Vecchio, head of Mortgages, HSBC Australia. 
<a href="https://www.propertyobserver.com.au/images/2017/04/6/MillennialHomeOwnership.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/04/6/MillennialHomeOwnership.png" alt="">
Establishing a budget to buy a home is a vital step before buying a home, said Del Vecchio, and should factor in for some changes in property prices, allowing for price increases from the time one starts to search for properties. 
“It is not uncommon to look for more than six months to find the right home, and often prices to enter the market have moved.” 
<a href="https://www.propertyobserver.com.au/images/2017/04/6/MillennialBarriers.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/6/MillennialBarriers.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/04/6/MillennialsBudget.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/6/MillennialsBudget.png" alt="">
The survey was conducted among 9,000 people in nine countries. 
Home ownership in Australia among millennials (between ages 19 and 36) fares only marginally higher than millennials in the United Arab Emirates (26%), and well below those in Mexico, who have one of the highest rates of home ownership (46 percent). China was at the top with a huge 70 percent millennials owning a home.
The average figure was 40 percent.
<a href="https://www.propertyobserver.com.au/images/2017/04/6/MillennialSacrifices.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/04/6/MillennialSacrifices.png" alt="">
Australian millennials said their second-biggest barrier to owning a home was having an insufficient salary to save, with 61 percent saying they needed a higher salary before they could buy a home compared to just 54 percent of millennials in the UK. 
<div title="Page 8">
<div>
<div>
Average property prices in Australia increased by 5.4 percent in 2016, while in 2017 real wages are expected to increase by only 1.6 percent. 
Even RBA Governor Philip Lowe has described the combination of high household and low wages growth a sobering combination.
</div>
</div>
</div>
“Despite the rising costs, millennials overwhelming still want to own a home in Australia. The dream certainly isn’t dead. This research demonstrates that a lack of preparation and understanding of the realities of owning real estate however can stall or even deflate those dreams,” says Del Vecchio. 
 
</body></html>

Australian millennials' home ownership rate among the lowest: HSBC report 

<html><body>
Melbourne could join Sydney sooner in the million-dollar median house price club, with Domain chief economist Dr Andrew Wilson saying it could happen by the middle of 2018 instead of the December quarter he spoke of just two weeks back. 
Melbourne's median house price was more than $795,000 in December 2016, according to the Domain group.
Record migration levels and the recent moves by the Victorian government to waive off stamp duty on homes up to $600,000 will drive the price growth, said Dr Wilson. 
"I believe the Melbourne median house price would exceed a million dollars by the middle of next year," he said on 2GB’s Nights with Steve Price show, revising his forecast of a $1 million by the December quarter of 2018 he spoke just a few weeks earlier carried in an article in Domain.com.au.
Sydney’s median house price surpassed $1 million in July 2015 after 8.4 per cent growth in a single quarter.
Dr Wilson expects Melbourne’s price growth to average 3 per cent a quarter for the next year and a half, which would push the median house price beyond $1 million "sooner rather than later".
Dr Wilson said  “a change in the tax mix it can have a sharp short-term impact on the market” such as the recent announcement by the Andrews Labor government that from July 1, there would be no stamp duty for first home buyers for purchases below $600,000.
Those buying a home valued between $600,000 and $750,000 will be eligible for a concession.
First-home buyers purchasing cheaper properties would likely “activate” upgraders in the market, who would then spend more for their next property, pushing up prices, Dr Wilson said.
He cited the rapid price rises from 2009 to 2010 as a result of sops to first-home buyers. During this time, thousands of dollars in incentives were provided to first-home buyers to buy into the market.
Dr Wilson also cited the near-record levels of migration into Melbourne as a key driver of prices on a 2GB’s Nights with Steve Price show. 
He said net migration into Victoria was about 83,000 for the 12 months to September 2016, according to ABS data. Much of that was into Melbourne and “that’s what pushing rents up and prices up in the Melbourne market”.
Low interest rates were also part of the equation and it “has left the market cherry ripe for an absolute rush of buyers”, he said.
</body></html>

Melbourne's median house price to reach $1 million by mid-2018: Domain's Dr Wilson

<html><body>
RBA Governor Philip Lowe has taken aim at banks’ lending practices and interest-only loans, while saying that in the long run only the supply of housing can address affordability. 
At a speech in Melbourne, Governor Lowe pulled up the lending practices of banks, saying “too many loans are still made where the borrower has the skinniest of income buffers after interest payments”.
“In some cases, lenders are assuming that people can live more frugally than in practice they can, leaving little buffer if things go wrong”. 
He justified the response of the Australian Prudential Regulation Authority that lenders can expect more scrutiny of loans with a very low net income surplus.
Last week, APRA clamped down on interest-only loans in a bid to cool the hot east coast property market, asking lenders to restrict interest-only loans to 30 per cent of new residential mortgage loans.
Interest-only lending represents nearly 40 per cent of residential mortgage lending by banks.
“Over the past year, close to 40 per cent of the housing loans made in Australia have not required the scheduled repayment of even one dollar of principal at least in the first years of the life of the loan; only interest payments are required. This is unusual by international standards,”  said Lowe.
“In some countries, repayment of at least some principal is required on all housing loans for the entire life of the loan. In other countries, interest-only loans are available only if the borrower has already contributed a fair degree of equity. So this is one area where Australia stands out. We are not unique in this area, but we are unusual.”
Last week, APRA Chairman Wayne Byres too had addressed the issue, saying “APRA views a higher proportion of interest-only lending in the current environment to be indicative of a higher risk profile.” 
While noting that the contrast in the housing markets of Melbourne and Sydney versus Perth and other regions, he said supply of housing hadn’t kept pace with Australia’s population growth and the result has been higher prices.
“Not surprisingly, the rising prices have encouraged people to buy residential property as an investment in the hope of ongoing capital gains,” said Lowe. 
“With global interest rates so low, many investors have found it attractive to borrow money to invest in appreciating residential property. This has reinforced the upward pressure on prices.” 
He said the rising indebtedness and rising housing prices was discussed at length by the Council of Financial Regulators because of the risk to the stability of our financial system. 
Although banks are soundly capitalised, he said the main concern was that the longer the recent trends continued, the greater the risk to the future health of the Australian economy. 
“Stretched balance sheets make for more volatility when things turn down.”
He said the flexible nature of Australian mortgages explain a high proportion of interest-only loans as also the taxation rules. 
“Many people with interest-only loans make significant payments into offset accounts rather than explicitly paying down principal. This flexibility, which is of value to many people, isn't available in most countries.
“A second factor is the taxation arrangements that apply to investment in residential property in Australia.”
APRA’s new measures restricting interest-only loans and strict limits on interest-only loans with high loan-to-valuation ratios, along with curbs on investor lending should help the whole system pull back to a more sustainable position. 
“A reduced reliance on interest-only loans in Australia would be a positive development and would help improve our resilience. With interest rates so low, now is a good time for us to move in this direction. Hopefully, the changes might encourage a few more people to think about the merit of taking out very large interest-only loans when interest rates are near historical lows.”
</body></html>

RBA Governor Lowe takes aim at banks' lending practices and tax structure for investors

<html><body>
Office leasing figures for Melbourne’s CBD jumped nearly 128 percent over the 12 months to March with the lion’s share bagged by government, according to preliminary data from Savills research.
The government and community sector drove the leasing surge, taking 38 percent of the space. 
Population growth and infrastructure projects have also been important market drivers. Savills associate director of Research, Monica Mondkar, said 569,810 square metre of leasing activity was recorded in the Central Melbourne office market in the last 12 months. 
“This is up 128 percent on the 250,000 square metres leased in the 12 months prior, and also up on the five-year average of 269,943 square metres, so these are quite remarkable figures in anybody’s language,’’ Mondkar said.
The Government &amp; Community sector was the dominant sector leasing 224,906 square metres, 83 per cent of which was Prime Grade. Direct leases totalled 77,868 square metres, while 81,000 square metres was pre-committed. Public administration was the largest sub-sector accounting for 65 per cent of the space taken-up under the Government &amp; Community sector, followed by Education at 23 percent.
Property and Business services was the next largest leasing sector at 28 percent followed by IT and Communication at 15 per cent and Finance and Insurance at 13 percent.
A number of factors contributed to the massive rise in leasing such as renewal of government leases, consolidation of government departments, population growth, government infrastructure projects, staff retention and recruitment requirements, and efficiency gains, added Phil Cullity, director, Office Leasing. 
“Last year, net absorption was 117,000 square metres which smashed the 10-year, 86,000 square metre average and all indications are that we are in for another 12 months like that,” he said.
Developers are pushing ahead with new buildings especially with economic rents being achieved, he added.
<a href="https://www.propertyobserver.com.au/images/2017/03/29/MelbourneCBDLeasing.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/29/MelbourneCBDLeasing.png" alt="">
“Overall governments – state and federal – have underpinned the massive take up with population growth also an important part of the equation,” he said.
Government departments had not upgraded during the GFC years of 2008/2009/2010 because of fewer options to go to, and a lot of government leases recently came up for renewal at the same time.
“The state government, in particular, has been proactive in taking advantage of market conditions, locking in rents and incentives, before rents begin to rise,” he said.
“Governments now realise that, as they are in competition with the private sector for the best young talent, they must offer a similar level of accommodation and that includes the latest building services including end of trip facilities, meeting facilities, amenities and access to transport, cafes.’’
Government tenants were also increasingly mindful of the need for more efficient buildings in reducing costs. 
The Victorian government’s current infrastructure programme including level crossing removals, the Metro Tunnel and the Western Distributor, was also driving the overall leasing market as companies associated with these projects were also taking leases in their vicinity, Cullity said.
<a href="https://www.propertyobserver.com.au/images/2017/03/29/MelbourneCBDLeases.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/29/MelbourneCBDLeases.png" alt="">
Source: Savills Research # Renewals
</body></html>

Melbourne CBD office leasing up 128 percent in 12 months, helped by government renting: Savills

<html><body>
An application has been filed in Queensland’s Supreme Court to appoint statutory trustees to sell the Don Pancho Beach Resort property at Bargara in Queensland, according to a notice for members on the resort’s website.
The matter will be heard by the Supreme Court in Brisbane on April 12. 
Located at Bargara, the white-painted, Mediterranean-style resort is positioned at the gateway to the Great Barrier Reef. It is part of the Bundaberg area.
The land area is 3,940 square metres and the zoning is medium density residential.
Rooms are priced from $88, according to the resort's website.
Members may be entitled to a share of the proceeds on the sale of the property, the note says. 
A resolution was passed by a majority vote of members at the Extraordinary General Meeting held on 11 May 2016 in favour of making this application. 
</body></html>

Don Pancho beach resort in Bundaberg seeks trustees for sale

<html><body>
Hotels are hot property for investors at the moment, outperforming all other property classes in Australia, says a recent report by Savills.
With international and domestic visitors growing 11.5 percent and 5 percent respectively in CY 2016, the hotel industry has not seen growth at this level since the Sydney 2000 Olympics, according to Savills Australia’s Hotels market report. 
Sydney and Melbourne are the standout performers, with their strong market KPI’s against a backdrop of compressing yields.
Chinese tourists take the lead in international visitors, growing at 22 percent, helped by more flights between the two countries and a relatively low Australian dollar making the country a more affordable destination, says Michael Simpson, Savills managing director of Hotels. 
“In a very positive sign for the depth of the market, the outstanding international inbound growth has been experienced across a wide range of markets, with inbound visitor growth from many established Asian markets, as well as the US, above 15 percent,” said Simpson.
In further proof of the strength of the market, Tourism Research Australia’s 10-year forecast expects international visitor nights and domestic visitor nights to grow at 5.6 percent and 3.1 percent annually respectively. Australia can expect to see increased room night demand nationally for the foreseeable future.
The Australia-wide market achieved a ‘revenue per available room’ (RevPAR) for CY 2016 of $139, which represented YOY growth of 2.2 percent.
All Australian cities posted RevPAR growth except Perth, Brisbane and Darwin with RevPAR declining in those cities by 9.3 percent, 8.7 percent and 9.6 percent respectively. The decline in performance of these markets is primarily due to the impact of the end of Australia’s resource boom, and rise in room supply.
For the remaining markets, Savills says growth in market KPI’s can be attributed to an increase in leisure demand from domestic and international markets, stimulated by a lower Australian dollar and stronger economic activity underpinned by construction and infrastructure projects.
<a href="https://www.propertyobserver.com.au/images/2017/03/28/SavillsHotels.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/28/SavillsHotels.png" alt="">
China is the engine room for visitor night growth in Australia right now, says Simpson. 
Australia received more than 7.4 million international visitors (up 11.5 percent) and 251 million international visitor nights (up 3.8 percent) for the year ended September 30, 2016.
Tourism Research Australia recently released international visitor numbers for CY 2016 which totalled 8.3 million, representing a healthy year-on-year (YOY) growth of 11 percent. 
The New Zealand market continues to contribute the highest number of visitors to Australia. However, the China visitor market recorded YOY growth of 21.9 percent, enabling it to exceed 1 million visitors, who more importantly spend an average of 40 nights in Australia when touring Down Under. 
As a result, China produced 43 million room nights representing almost three times the volume produced by New Zealand. The Chinese visitors also tend to spend more per capita compared to other visitors.
<a href="https://www.propertyobserver.com.au/images/2017/03/28/SavillsHotelDeals.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/28/SavillsHotelDeals.png" alt="">
Simpson went on to say that Sydney’s strong performance is set to continue with occupancies reaching capacity during peak holiday and corporate activity periods, providing the opportunity for hoteliers to grow ADR.
“Sydney’s Luxury segment capitalised on the strength of the market achieving an occupancy of 85.9%, and ADR of $339 (up 7 percent), delivering a RevPAR of $291 (up 5.7 percent), which exceeded Melbourne’s Luxury segment RevPAR of $271.
“The key factors underpinning Sydney’s current and expected future performance are a combination of buoyant economic metrics, strength in banking, finance, insurance, professional services and construction/ infrastructure projects, which are collectively fuelling a tsunami of economic activity and room night demand in Sydney.
“For the next 10 years, Sydney occupancy will remain in the 80th percentile,” said Simpson.
Melbourne was the second highest performing market in CY 2016 with an increase in occupancy for the fourth consecutive year. Conversely, Average Daily Rate (ADR) declined marginally, suggesting that while occupancy remained strong, hoteliers were unable to grow rate during non-peak periods. As a result RevPAR remained relatively stable in CY 2016, when compared to CY 2015.
Simpson said the inability to significantly grow ADR in CY 2016 is also demonstrated by Melbourne’s Luxury segment which reflected steady YOY market KPI’s, achieving an occupancy of 89.5 percent, ADR of $302 and delivering a static RevPAR of $271.
“Melbourne’s construction boom of residential apartments, commercial space and continuing development of Docklands, has also encompassed new hotel development,” he said.
“Despite the strength and enduring nature of Melbourne’s events calendar and symbiotic corporate activity Melbourne enjoys with Sydney, we anticipate that Melbourne market KPI’s will be under pressure to match Sydney’s performance in coming years given the relative challenge of delivering new supply in Sydney.” 
</body></html>

Hotels become Australia’s highest returning real estate asset class: Savills 

<html><body>
Fractional property investing platform BrickX has completed six months since its official launch, and has managed more than 15,000 signups and 2,850 investors in this period, according to CEO Anthony Millet.
With seven properties under its belt so far in Sydney and Melbourne, the firm is now looking at opportunities further in Adelaide and Tasmania.
Its current portfolio of properties is valued at more than $8,68 million.
Property prices grew 18.4 percent in Sydney while gaining 13.1 percent in Melbourne over the past twelve months, according to CoreLogic - median price index, to Feb 17.
The letter also seeks to answer the questions around liquidity, which was raised in a recent survey the company ran. 
“The current median time for Brick Holders to sell any Bricks they have put up for sale is 1.8 hours (monthly average measured Oct 16 - Feb 17),” Millet says.
It said they will explain clearly the ongoing median times in an update.
There has been market chatter that this pace cannot continue indefinitely, and the CEO letter says the company will “be very selective around the types of properties and suburbs we choose for BRICKX”.  
The company will be hosting a webinar with realestate.com.au chief economist and BRICKX advisor, Nerida Conisbee on March 28 about how the residential market has performed so far in 2017 and what her predictions are for the rest of the year. 
On the panel of advisors for BrickX are CoreLogic’s director of research Tim Lawless and realestate.com.au’s Nerida Conisbee.
For more information on the webinar, <a href="https://www.propertyobserver.com.au/https://attendee.gotowebinar.com/register/7156001386243593731" target="_blank">click here</a>.
</body></html>

BrickX looks to spread investment wings to Adelaide and Tassie

<html><body>
ASX-listed prop-tech company Property Connect has appointed Century21 Australiasia owner Charles Tarbey as chairman with the latter also agreeing to a trial of Property Connect's LiveOffer platform.
Using LiveOffer, property managers or landlords can view incoming bids for their properties in real-time while also giving feedback to renters on how their offer ranks against other bidders.
The platform, which was launched in Australia last week, has tasted success in the US with property managers Berger and EIMC onboarding their apartments recently. 
On Tarbey’s appointment as chairman, Property Connect chief executive Tim Manson said it was a "further validation" of the company's technology.
"Charles’ vast experience and unique insights into real estate markets will help Property Connect develop and refine its offering, technology and strategy," said Manson. 
Tarbey, who is also Century 21 chairman, has been in the real estate industry for 45 years. He purchased Wentworth Holdings, Australia's largest property management group, in 2011 and also owns the master franchises of Century 21 Australia, Century 21 New Zealand and Century 21 Papua New Guinea.
Property Connect and Century 21 are finalising terms for a trial of the technology at select Century21 offices in Victoria and Western Australia, starting in April.
Michael Langoulant, who took over as non-executive chairman in November 2016, will remain on the board as a non-executive director.
</body></html>

Property Connect appoints Century21 owner as chairman, strikes online platform deal 

<html><body>
Challenger banks may be impacted by "ultra-competitive mortgage pricing" as lenders struggle to cope with rising demand for loans amid rising funding and regulatory costs and pressure on profits.
A warning came through from Bendigo and Adelaide Bank managing director  Mike Hirst, who said rates needed to return to levels that "reflect the current market funding and capital costs”, according to a report in the Australian Financial Review.
With the big four banks — Commonwealth, Westpac, ANZ and NAB — raising home loan rates for both investors and owner occupiers, smaller lenders are seeing a surge in borrower applications and struggling to meet demand.
Adelaide Bank announced an increase in its deposits for residential investors from 10 per cent to 20 per cent on top of the 25 basis point increase in costs for investor loans.
"As has been well telegraphed to all Australian authorised deposit-taking institutions, there is an expectation that as lenders, we must manage within the regulator's 10 per cent growth speed limit for investor loans,” Hirst was cited as saying by Fairfax Media.
Another lender to announce a change in its lending rates was AMP Bank, the Australian Broker reported.
The bank is raising variable interest rates for interest-only loans for existing customers by 15 basis points for owner-occupied loans and 28 basis points for investment loans from April 3.
In addition, effective March 31, 2017 for new customers and April 3, 2017 for existing customers, owner occupied principal and interest variable rate loans will increase by 7 basis points. As a result, the AMP Bank Professional Pack owner occupied variable rate loan will increase to 3.92% p.a. for new customers for loans of $750,000 and above.
The lender is also encouraging customers with interest-only loans to switch to principal and interest repayments. It will waive the switch fee until June 30. 
Sally Bruce, group executive of AMP Bank, almost echoed Hirst, saying the bank’s rate decision reflects “wholesale funding costs, the need to maintain a balanced portfolio and the market environment”.
“We also want to encourage customers to move to principal and interest repayments where it’s appropriate, as there is a great opportunity to access lower interest rates and repay your loan faster,” she was quoted as saying.
Teachers Mutual Bank, Unibank and Firefighters Mutual Bank are also increasing owner-occupier fixed rates from one to five years by 7 basis points. It applies to interest only and principal and interest.
For example, the interest rate on a one-year principal and interest loan for an owner occupier will rise from 3.77 per cent to 3.84 per cent. For five years the rate will rise from 4.54 per cent to 4.61 per cent.
Investor rates for the same borrower will respectively increase to 4.14 per cent and 4.91 per cent over the same terms.
Last May, Teachers Mutual Bank and Unibank were among the first lenders to slow growth on investor loans to meet the financial regulator, the Australian Prudential Regulatory Authority’s 10 per cent annual cap on investor loan growth. 
The banks, which have more than $6 billion in assets and 180,000 members, also recently withdrew from new investment lending to reduce annual growth from about 15 per cent. It was not available for comment.
"The changes to our fixed rate home loans represent the first changes to these rates in 2017. They reflect the changing market conditions for interest rates, both domestically and internationally,” said a bank spokesman. 
MyState, the listed financial services group, is also set to raise the rate for existing residential investors by 28 basis points.
Last Friday, property investors with interest-only loans from Commonwealth Bank of Australia were hit with the second interest rate rise in six weeks.
It follows earlier increases from ANZ Banking Group, Westpac Bank Corp and National Australia Bank and comes despite the Reserve Bank of Australia holding the official cash rate steady last week.
</body></html>

Mortgage pricing competition might hurt challenger banks    

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Prateek Chatterjee

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News