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An efficient market relies on rational customers being willing to change suppliers when there’s good reason to do so.
But what happens when customers stay put regardless?
This issue is particularly acute in the banking industry.
Even when bank customers have a very good reason to switch, behavioural economics research shows they’re often reluctant to make the move.
For example, big scandals that affect banks have a weak impact on consumer behaviour.
However, there is a greater propensity to act among customers who are directly impacted.
Behavioural economics also shows bank customers are often slow to switch to take advantage of better offers from competitors.
In 2016, the UK’s Competition and Markets Authority lamented that only “3% of personal and 4% of business customers switch to a different bank in any year” in the country.
In 2013, Canstar suggested the figure is slightly higher in Australia at 5%.
Despite the slightly higher propensity to switch banks among Australian consumers, there’s much we can learn from the UK’s use of behavioural economics to nudge customers to act in their own best interests.
In particular, financial technology companies can provide information platforms to make it easier for customers to switch.
Behavioural economists have shown that consumer decisions are not rational. In particular, there is a “sunk cost bias” that affects consumer decisions.
That is, consumers tend to place more value on any previous effort or expenditure they’ve made rather than judging economic value when they make decisions.
If you have left a 20% deposit on an item in a store, you will probably buy it, even if you found the same item for sale at 75% of the price elsewhere.
So, customers will tend to stick with the bank they’ve got, despite scandals.
Competition authorities, led by the UK’s Competition and Markets Authority, are increasingly trying the “nudge” options offered by behavioural economics as a way to help persuade an irrational consumer to do what is in their best interests.
A nudge is simply a mechanism to encourage people. It might be a reminder as to the consequences of not taking the action or benefits of going ahead.
Regulators have examined ways in which nudges can be given without unintended consequences.
For example, should the nudge be a carrot or a stick? And which works best? The UK’s Competition and Markets Authority’s chief economic advisor, Mike Walker, advises regulators to “test, learn and adapt”.
A critical part of any nudge is presenting information in a way that can be used easily by consumers.
Intermediaries, comparison tools and other financial technology services can provide this information.
One of the barriers at the moment to getting customers to switch in Australia is a lack of information on all bank products and financial technology businesses to manage this information.
Although the UK implemented services that make it easier to switch between retail bank accounts, the UK’s Competition and Markets Authority found that this didn’t improve competition in the sector.
To resolve this problem, it has ensured that customers have information on other banks and their account options as part of new account-switching regulation.
The way that this works is that customers can compare their existing offering with alternatives using an app that talks to an open electronic interface to the bank.
The UK’s Competition and Markets Authority has mandated that the retail banks provide this interface, known as an applications programming interface, to both consumers and to financial technology businesses.
The effect is a space for new businesses to provide comparison tools.
These new financial technology businesses will not impose a significant cost on the banks.
Each of the UK banks has spent around £1 million each to create these open electronic interfaces, according to the UK Open Data Institute.
The open electronic interfaces will be associated with the European Union Second Payment Services Directive, which will be implemented before Brexit takes effect.
This directive will help automate parts of the switching process.
The Australian banks and the Reserve Bank under the auspices of the Australian Payments Clearing Association are trialling a New Payments Platform to try to make it easier for customers to switch.
But it’s not likely to have the same degree of flexibility and consistency as the approaches adopted in the UK, as it focuses on financial institution needs, rather than consumer ones.
Regulators in Australia should use behavioural economic analysis to learn more about how consumers use any new information on bank switching or services on this offered by financial technology businesses.
We’re still waiting on evidence on how these new financial technology companies will change consumer behaviour in the UK.
But it is likely that in the very least it will increase the intensity of rivalry between the retail banks, this can only be a good outcome for consumers in the UK.
This could also inform a similar implementation in Australia, particularly after a parliamentary committee’s first report on the four major banks is released.
<a href="https://theconversation.com/profiles/rob-nicholls-91073" target="_blank">Rob Nicholls </a>is a lecturer in Business Law at UNSW and is an author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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j.ballantyne1990-6AQqhLzZaK

If scandals don’t make us switch banks, financial technology might: Rob Nicholls

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In his recent presidential address to the American Economic Association, Nobel Laureate Bob Shiller drew attention to the importance of narratives in economics and, particularly, in financial markets.
This corroborates some recent research by the author and colleagues at the University of Queensland into the psychology of economic behaviour.
When we tell ourselves stories, we link up a number of different events into a coherent whole.
In financial markets and across the economy as a whole, these stories not only affect expectations but are expectations.
And expectations shape behaviour.
Our research shows that the more simple a story, the more it extends and agrees with preconceptions, the more persuasive it is.
A good story becomes embedded in investors’ minds; the story becomes the expectation.
If a narrative embedded in the mind of an investor tells a positive story about, for instance, profitability, they will act on it.
A positive story results in good news in the financial markets.
An example of what might occur when a powerful narrative spreads across financial markets is playing out right now.
The latest figures from the Australian Bureau of Statistics (ABS) reveal a huge spike in commercial loans last November.
Seasonally adjusted, there was a 14.8% increase in commercial finance from the month before.
The strange thing is, this surge occurred at the same time NAB’s Monthly Business Survey showed businesses were “increasingly concerned about the underlying momentum in the economy as evidence mounts that the non-mining economy is losing steam”.
Businesses expecting a sluggish future don’t suddenly go out and borrow 14.8% more money.
But we can see in the graph below that for much of the year business finance had been flat or declining. Until it wasn’t.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%2012.43.55%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/07/Screen%20Shot%202017-02-07%20at%2012.43.55%20pm.jpg" alt="">
Now these are aggregate data; they tell us the change in the amount of lending to business done by the financial sector as a whole.
Even then, this spike is unusually massive, and therefore in and of itself in want of an explanation.
John Maynard Keynes wrote that surges in finance are supported by two factors: relatively cheap credit and expectations of future returns.
Without strong expectations of future returns, no amount of cheap credit can induce businesses to borrow and invest.
This is the famous “liquidity trap”.
Our research shows that a compelling story – one that extends and agrees with preconceptions – would have been sufficient to overcome the liquidity trap.
A mathematical principle called the “Chinese Whispers” theorem indicates that for us to see remarkable and sudden changes in economic systems we must be observing the effects of a powerful narrative supporting positive expectations (i.e. future profitability).
Meanwhile, a concept popularly known as “Made To Stick” indicates that a simple story, connecting emotionally charged ideas together while extending and agreeing with preconceptions, is sufficient to become embedded in minds and inform expectations.
In our research we demonstrate that this idea is the logical conclusion of a half-century of psychological research on cognitive dissonance, personality and “salience” in perception, as well as some simple mathematics.
You can see this play out in the headlines about the “Trump bump”.
Very soon after the Brexit vote and consistently afterwards, Theresa May indicated an eagerness to strike free trade deals with the US and Australia and Malcolm Turnbull concurred.
And while Donald Trump campaigned on anti-trade policies, these excluded the Anglosphere.
Further, the British economy did not collapse following the Brexit vote, and Trump’s policy platform included massive infrastructure stimulus, tax cuts and deregulation. Adding to all this, Congress and the Supreme Court are now Republican.
This is a positive narrative for expectations of future returns, because the Australian economy on the whole does not compete with the US and UK economies.
Rather, we help to supply their demand.
We have business to gain by participating in a strong Anglosphere economic bloc, and we have little business to lose.
Throughout financial history, there are other examples where powerful narratives have driven the markets.
John Kenneth Galbraith, in his history of money and the 1929 crash, tells us of at least three spectacular ones.
When King Louis XV granted the Mississippi Company the profits of the colony of Louisiana, its share price rose so high it reflated the French economy.
In his book, The Ascent of Money, Niall Ferguson shows us exactly how the narrative about the unbounded wealth of the Louisiana company drove this spread – in pamphlets, cartoons and posters.
When parliament granted the South Sea Company a monopoly over trade with the Spanish American colonies, its shares became so valuable it was for a time decided it, rather than the Bank of England, should assume responsibility for the British national debt.
The fact its merchants would have to run the gauntlet of the Spanish navy all the way across the Atlantic was conveniently ignored, while the story of fabulous riches from the new world captured the attention of investors.
The narrative of the Shenandoah Corporation beats them all. The initial call for investments was oversubscribed by a factor of seven.
Why? Because at that time a story was being told about the ability of fund managers applying “investment science” to obtain amazing returns.
“Trust the experts, they’ll make you a mint” is a simple story, connecting emotionally charged ideas together while extending and agreeing with our tendency to defer to the advice of the “wise men”.
Governments and investors ignore the power of storytelling at their peril.
The financial markets are not driven by the “mechanics” of interest rates and money alone.
They are driven by one of the most ancient traditions of humanity – stories.
We can lead an investor to liquidity, but we can’t make them drink without telling them a story about why it is so very tasty.
And if we want to stop them from drinking a really tasty poison, it’s not enough to make the poison a bit harder to get.
Either it has to be taken away (verboten), or a simple story, extending and agreeing with preconceptions, has to be told about why poison that tastes really nice is still poison.
<a href="https://theconversation.com/profiles/brendan-markey-towler-151862" target="_blank">Brendan Markey-Towler </a>is an Industry Research Fellow for the Australian Institute for Business and Economics and School of Economics at The University of Queensland. He is an author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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How storytelling drives finance and economics: Brendan Markey-Towler

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Donald Trump’s assumption of the US presidency since the last RBA Shadow Board round two months ago raises important questions about the future health of the global economy.
Domestically, consumer prices rose a little faster, by 1.5% year-on-year in the December 2016 quarter, but still well below the RBA’s 2-3% target band.
The CAMA RBA Shadow Board’s conviction that the cash rate should remain at its current level is stronger than two months ago, reflecting the heightened uncertainty surrounding the Trump presidency.
The Shadow Board attaches a 70% probability to a rate hold being the appropriate policy setting.
The confidence attached to a required rate cut equals 5%, while the confidence in a required rate hike equals 25%.
There is little inflationary pressure emanating from the Australian labour market, with Australia’s official unemployment rate now standing at 5.8%.
Since the participation rate has remained steady, the modest increase in unemployment is primarily due to a smaller increase in the creation of new jobs.
There is no new data on wages growth.
The Aussie dollar, relative to the US dollar, has strengthened again, finding support above 75 US¢.
Yields on Australian 10-year government bonds have slipped to 2.77%, once again nearing their historical low.
Domestic share prices have retreated from their highs in early January, the S&amp;P/ASX 200 stock market index now consolidating between 5,600 and 5,700.
The main global threat remains the uncertainty surrounding the Trump Presidency.
On the one hand, Trump’s promise to drastically increase infrastructure and defence spending, coupled with tax cuts, will exert upward pressure on US, and hence world, interest rates.
On the other hand, Trump’s protectionist and nationalist policies will dampen international trade and generate political uncertainty.
This could further increase global interest rates if risk premia were to rise considerably, or lower interest rates if global demand falls.
Making accurate predictions in such an environment is extremely ambitious; but the heightened uncertainty is damaging to financial markets and the overall economic outlook.
Consumer confidence, as measured by the Westpac-Melbourne Institute Consumer Sentiment Index, has fallen slightly during the past two months.
It now stands at 97.4 (down from 101.3 two months ago).
The manufacturing and services PMI, which measure the performances of the manufacturing and services sectors, continue to bounce around without clear direction.
It is now equaling 51.2 (down from 54.2 two months ago) and 54.5 (up from 50.5), respectively.
The AIG Performance of Construction Index (PCI), after its recent blip up, fell again, edged up for the second month in a row, from 45.9 in October to 47 in December.
Building permits declined again in December, by 1.2%, though November saw an interruption in this trend, with an increase of 7.5%.
The Shadow Board’s preference for the optimal interest rate has strengthened.
It now attaches a 70% probability (56% in December) that “no change” is the appropriate policy, a 5% probability (2% in December) that a rate cut is appropriate and a 25% probability (43% in December) that a rate rise, to 1.75% or higher, is appropriate.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.50% equals 24%, three percentage points up from the previous round.
The estimated need for an interest rate decrease remains unchanged at 9%, while the need for a rate increase equals 67% (71% in December).
A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 17% (unchanged from December), while the confidence in a required cash rate decrease (7%) and in a required cash rate increase (77%) are also virtually unchanged.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%2011.37.05%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/07/Screen%20Shot%202017-02-07%20at%2011.37.05%20am.jpg" alt="">
For more information, <a href="https://cama.crawford.anu.edu.au/" target="_blank">click here</a>
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February rates are on hold as uncertainty about Trump continues: RBA Shadow Board

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The following charts describes what the Reserve Bank of Australia knows about Australia's economy especially GDP growth and inflation:
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/06/RBA%20CHART-1.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/06/RBA%20CHART-2.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/06/RBA%20CHART-3.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/06/RBA%20CHART-4.jpg" alt="">
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RBA's January chart pack gives insight to Australian GDP growth and inflation

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A mid-century modern style house with mountain views in Canberra's Campbell has been listed for auction.
Located at 11 Waller Crescent, the home was designed by architect Neville Ward.
It takes advantage of a bush setting close to the city centre and Lake Burley Griffin with westerly views of the Brindabellas and Black Mountain.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/11%20Waller%20Crescent-2.jpg" alt="">
The property has four bedrooms, a purpose-built music room, a study, plus two decks/terraces.
There is also an extensive garden and a salt water pool styled in a native garden setting.
The property goes on auction on February 18 through Peter Blackshaw Real Estate agent Debbie Maddigan.
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Mid-century modern style Campbell, Canberra trophy home listed

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Burnie is the cheapest place to purchase a unit in Tasmania, according to Investar’s latest report.
The property investment firm says that the average median price of a two bedroom unit at Burnie is $139,000.
This is followed by East Devonport with $149,000 and Launceston with $155,000 for a studio or one bedroom.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="113">
Suburb
</td>
<td valign="top" width="113">
Postcode
</td>
<td valign="top" width="113">
Bedrooms
</td>
<td valign="top" width="113">
Median price
</td>
</tr>
<tr>
<td valign="top" width="113">
Burnie
</td>
<td valign="top" width="113">
7320
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$139,000
</td>
</tr>
<tr>
<td valign="top" width="113">
East Devonport
</td>
<td valign="top" width="113">
7310
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$149,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Launceston
</td>
<td valign="top" width="113">
7250
</td>
<td valign="top" width="113">
Studio and 1
</td>
<td valign="top" width="113">
$155,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Newnham
</td>
<td valign="top" width="113">
7248
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$160,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Upper Burnie
</td>
<td valign="top" width="113">
7320
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$170,000
</td>
</tr>
</tbody></table>
A two bedroom unit at <a href="https://www.realestate.com.au/property-apartment-tas-burnie-124390686" target="_blank">25/47 North Terrace</a>, Burnie (above) has been listed for sale for $109,000. It last sold for $87,500 in 2004.
Similarly a two bedroom unit at <a href="https://www.realestate.com.au/property-unit-tas-burnie-124322670" target="_blank">38/47 North Terrace</a>, Burnie (below) has been listed for $135,000 after last trading for the same price in 2010.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/38_47%20North%20Terrace.jpg" alt="">
A two bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-tas-burnie-123474362" target="_blank">13/47 North Terrace</a>, Burnie (below) has been sold for $100,000, going back from its 2008 sale of $120,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/07/13_47%20North%20Terrace.jpg" alt="">
Similarly a two bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-tas-burnie-123128874" target="_blank">4/3 Vernon Place</a>, Burnie (below) has been sold for $150,000, only increasing $2,500 in five years.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/07/4_3%20Vernon%20Place.jpg" alt="">
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Burnie the cheapest place to purchase a unit in Tasmania: Investar

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The Federation Wahroonga trophy home, Kumdibar, set on 2,934 square metres, has been listed for sale with $7.5 million plus hopes.  
Built in 1898, the five bedroom home at <a href="https://www.realestate.com.au/property-house-nsw-wahroonga-123888170" target="_blank">62 Braeside Street, </a><a href="https://www.realestate.com.au/property-house-nsw-wahroonga-123888170" target="_blank">Wahroonga</a> has three stone bathrooms, a master with ensuite and a flexible study on each level. 
There’s also a games room above the double garage with a king-sized billiard table and overhead lights as well as a tennis court and swimming pool. 
The stately, manicured home has been listed for expression of interest by Darren Curtis and Carys Adams of Ken Jacobs, Christie’s International Real Estate, Double Bay. 
The median house price in Wahroonga is $1.6 million according to CoreLogic RP Data.
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Historic Federation trophy home Kumdibar at Wahroonga listed

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Hobart has a balanced market for its unit’s rental vacancy situation, according to Herron Todd White’s latest report.
The property valuation firm says that Hobart’s rental vacancy trend is tightening.
Demand for new units is soft despite an increasing trend in new unit construction as well as a steady volume of unit sales.
<a href="https://www.propertyobserver.com.au/images/2017/02/03/Screen%20Shot%202017-02-03%20at%202.53.55%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/03/Screen%20Shot%202017-02-03%20at%202.53.55%20pm.jpg" alt="">
Hobart’s unit property market cycle is currently rising, HTW's report said.
New unit properties in Hobart are almost never sold at prices exceeding their potential resale value.
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Hobart's demand for new units is soft: HTW

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Bankrupt former billionaire Nathan Tinkler’s ex-wife Rebecca is selling her Hawaiian mansion for $US15.8 million, at not much more than break even.
The three acre property on the island of Maui has six bedrooms, six bathrooms, an infinity pool, chef's kitchen, an over-sized wine room and a movie theatre.
The Zillow website says an offer has been pending on the property since last month with<a href="https://vwonmaui.com/listing/30113-4541-makena-rd-makena-hi" target="_blank"> the Sothebys Volker Weiss agency</a>.
It initially hit the market early last year at $US19.9 million.
The former couple bought the mansion together in 2011, with Ms Tinkler understood to have been living in the 2004-built home since they split in 2013.
The purchase was made by Queen St Property Holdings. Land title records at the time show the assessed value of the property was $US8.6 million. It is now $15.6 million.
Set on a hill looking out over the Pacific ocean, the 640 square metre home on 12,500 square metres in the gated Keauhou subdivision of Makena, the most expensive area on Maui.
The Tinkler’s Brisbane trophy home recently sold at a $2 million discount.
Their former Pullenvale retreat was sold after the receivers Grant Thornton moved in on him.
The expansive mansion was sold to Brisbane buyer for $3.05m which was $2.15m less than the $5.2 million paid almost a decade earlier.
The former BRW Young Rich list leader had a trust estimated at its peak to have hold more than $1.4 billion worth of assets including his many homes and horse studs, his stake in Whitehaven Coal as well as The Newcastle Knights and Jets via Hunter Sports Group.
Tinkler's Falcon 900 jet was repossessed by creditor GE Capital in Singapore in 2012.
Last week Tinkler was given permission to travel to the United States for a Hawaiian holiday as long as he follows strict conditions ordered by a Sydney judge.
Justice Nicholas at the Federal Court gave permission as long as he returns to Australia no later than April 8.
Tinkler surrendered his passport when he was declared bankrupt with debts of $554 million in March last year.
This article first appeared int he Sunday Telegraph.
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Nathan Tinkler’s ex-wife selling Hawaiian mansion

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The auction market will start to gather momentum coming into February after the seasonal slowdown over the holiday period, with auction numbers doubling over the week across the combined capital cities, according to CoreLogic’s latest report.
The property data firm says that there were 867 auctions being tracked by CoreLogic this week, with a preliminary clearance rate of 70.8 per cent, compared to last week’s 71.6 per cent across 368 auctions.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.27%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.27%20am.jpg" alt="">
Although auction activity has shown a significant uplift over the week across the combined capitals auction volumes are increasing at a slower rate than what was seen over the corresponding period last year, when 916 auctions were recorded with a similar rate of clearance (70.1 per cent).
The lower volumes can be attributed to slower activity across the Sydney market, which was also evident over the same week last year, when volumes were lower over the given period compared to previous years.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.35%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.35%20am.jpg" alt="">
While the combined capital city clearance rate returned a strong result over the week, as auction numbers continue to gather pace we will get a clearer understanding if auction trends remain as strong as they were at the end of 2016.
In Melbourne, Australia’s largest auction market, a preliminary auction clearance rate of 77.5 per cent was recorded across 255 auctions this week.
This is almost double the volume recorded last week, although slightly lower than what was seen over the corresponding week last year.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.44%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.44%20am.jpg" alt="">
Last week, Melbourne’s final clearance rate was recorded at 82.4 per cent across 137 auctions.
During this time last year, 268 properties were taken to auction across Melbourne and a clearance rate of 77.6 per cent was recorded.
The busiest Melbourne sub-regions this week were Melbourne’s West region and the South East region, where 68 and 36 auctions were held respectively.
Sydney’s preliminary clearance rate this week was 78.1 per cent across 192 auction results.
There were a total of 255 auctions held across the city.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.49%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.49%20am.jpg" alt="">
Looking back at this weekend last year auction volumes were higher, when 313 auctions were held across Sydney and a clearance rate of 75.0 per cent was recorded.
Sydney’s North Sydney and Hornsby hosted the most auctions of any Sydney sub-region this week, with 39 properties taken to auction.
The preliminary clearance rate for the region is 82.1 per cent across 28 results.
There were 99 Brisbane homes taken to auction this week, with 67 results reported so far.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.56%20am.jpg" target="_blank">Click to enlarge</a>
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The preliminary clearance rate for the city is 58.2 per cent, down from 63.0 per cent last week and higher than one year ago, when 54.0 per cent of the 111 properties taken to auction were successful.
Across the Gold Coast 48 results have been reported so far, with a success rate of 47.9 per cent (23 sales).
A total of 143 Adelaide homes were taken to auction this week, with a preliminary clearance rate of 64.3 per cent across 84 results.
This is lower than the 70.5 per cent recorded over the corresponding week last year when 107 auctions were held across the city.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.58.12%20am.jpg" target="_blank">Click to enlarge</a>
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In Perth, 35 auctions took place this week, with 14 results reported so far.
Perth’s preliminary clearance rate of 28.6 per cent across these 14 results is lower than both last week’s result (38.5 per cent) and the clearance rate from one year ago (35.3 per cent).
Canberra’s preliminary auction clearance rate of 75.4 per cent this week is higher than last week, when the final auction clearance rate was 72.7 per cent and higher than the 71.4 per cent recorded last year.
There were 11 Tasmanian auctions held this week, 2 were reported as sold
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Auction numbers double in all capital cities as February market gains momentum: CoreLogic

Kew has long been regarded as one of Melbourne's premier residential suburbs. It's a location defined by its grand period homes, leafy streets and some of the city's most prestigious schools, yet it has often sat just outside the spotlight cast on neighbouring Hawthorn and Camberwell.

Increasingly, however, buyers are recognising that Kew offers much of what draws people to those suburbs, with a quieter residential setting, exceptional amenity and long-term owner-occupier appeal.

Within a few minutes' walk, residents can access Kew Junction, one of Melbourne's most established village centres. Cafés, bakeries, restaurants, supermarkets, boutique retailers and everyday services are all on the doorstep, with local favourites including Centonove, Adeney Milk Bar Cafe, and Frank &amp; Harri creating the type of walkable lifestyle that has become increasingly difficult to find in Melbourne's inner east. Beyond the immediate neighbourhood, Glenferrie Road's renowned shopping and dining precinct in Hawthorn and the retail, dining and entertainment offerings of Camberwell Junction are both just a short drive or tram ride away.

The suburb is equally well connected. Tram routes 48 and 109 provide direct access to the CBD, while High Street and Cotham Road connect residents to the wider inner east.&nbsp;Nearby access to the Eastern Freeway also places the Yarra Valley, Mornington Peninsula and Melbourne Airport within easy reach, adding another layer of convenience for weekend travel.&nbsp;It's a rare combination of connectivity and tranquillity, where quiet residential streets sit just moments from some of Melbourne's most established shopping and lifestyle precincts.

For families, Kew remains one of Melbourne's most tightly held addresses. Carey Baptist Grammar School, Xavier College, Methodist Ladies' College, Trinity Grammar, Ruyton Girls' School and Genazzano FCJ College are all nearby, while the Yarra River parklands, walking trails and sporting clubs provide another layer of lifestyle appeal.

It's within this established pocket that developer Ricdanic is delivering <a href="https://www.apartments.com.au/new-apartments/wimba-ave-kew-9-11-wimba-avenue-kew-vic-3101">Wimba Ave</a>, a boutique collection of just 13 residences across two buildings named after its location on the tree-lined Wimba Avenue,&nbsp;within one of Kew's most prestigious pockets where homes have been known to sell up to and above $8 million.

[smartcode_project:default project_id=140755 project_image_fid=354809]

The residences prioritise the space that buyers are increasingly searching for but struggling to find in established suburbs. Living areas extend beyond five metres in width, ceiling heights range from three to five metres, and apartments open onto private gardens averaging around 125 sqm. Selected residences also feature balconies of approximately 60 sqm, while premium inclusions include Miele appliances, double-glazed windows, EV readiness, fully electric systems and a 7.2 NatHERS energy rating.

Architect Chris Idle says opportunities to deliver homes of this scale within established suburbs have become increasingly uncommon.

"There are very few opportunities to do these kinds of developments in leafy, established suburbs," he says. "To get this level of amenity, natural light, and architectural freedom in such a setting is extremely rare."

[smartcode_project:default project_id=140755 project_image_fid=366267]

The architecture draws on Kew's established character through the use of handmade Krause bricks, while landscaping by John Patrick introduces 23 plant species, including nine native varieties, creating an environment which focuses just as much on nature as it does the building.

Construction on Wimba Ave is well underway by renowned high-end builder Sinjen, with completion expected in late 2027. Prices start from $2.22 million.

[smartcode_project_cta:default project_id=140755]

Joel Robinson

The enduring appeal of Kew's tree-lined streets and village lifestyle

"For me, it's the location." That was the first thing Chris pointed to when reflecting on why he and his wife Marita decided to purchase at Candela Ivanhoe, the under-construction new apartment development by Salter Brothers in the heart of the north-eastern M​elb​ourne​ suburb. ​

"We've lived here before… everything is here," Chris said.

"Our doctor is around the corner, there's dentists, pilates, everything we need, restaurants, fast food places, two train stations, Ivanhoe and Darebin, both in walking distance. You don't need anything else."

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Just 10 kilometres from Melbo​urn​e's CBD, Ivanhoe combines direct city connectivity with the amenity of an established village community. Residents have access to highly regarded schools, expansive parklands, public transport, and a thriving retail and hospitality precinct centred around Upper Heidelberg Road, all within a neighbourhood that has retained its leafy character despite its proximity to the city.

<a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a> sits within the heart of this established landscape, positioned just moments from Ivanhoe Village and within walking distance of many of the suburb's most sought-after amenities.

[smartcode_project:default project_id=342 project_image_fid=364553]

From Candela, residents can access cafés, grocers, wine bars, restaurants and essential services on foot, while Ivanhoe Station and Darebin Station provide direct connectivity across Mel​bour​ne. The development is also surrounded by some of the suburb's best-known lifestyle destinations, including Pinkie, Laurent, Enni, Docasa and Woodfire Pizza e Cucina, alongside Ivanhoe Plaza, Woolworths, pharmacies and specialty retailers.

Green space is another defining feature of the suburb. Darebin Parklands, Ivanhoe Park, Nellie Ibbot Park and the Yarra River trail network provide extensive opportunities for recreation, while Ivanhoe Golf Course and Ivanhoe Tennis Club continue to underpin the area's long-established lifestyle appeal.

The suburb's education offering further strengthens demand. Ivanhoe Grammar School, Ivanhoe Girls' Grammar School, Mary Immaculate Primary School and Ivanhoe Primary School have helped establish the area as one of Melbou​​rne's most sought-after schooling precincts, attracting families and downsizers alike who want to remain connected to the area.

[smartcode_project:default project_id=342 project_image_fid=357510]

While location was the priority for Marita and Chris, the project itself also needed to meet their expectations.

"Whilst location was paramount, I was also looking at design of the environment and Candela ticked every box," Marita said.

"We're just thrilled with our choice."

[smartcode_project:default project_id=342 project_image_fid=336455]

Developed by <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>, Candela Ivanhoe has been designed to complement its village setting, with an emphasis on generous floorplans, natural light and practical everyday living.

Residents will have access to a range of shared amenities, including a communal rooftop garden and dedicated residential lounge, complemented by a ground-floor café and lifestyle wellbeing centre, helping foster the sense of community already emerging among future owners.

That approach has resonated strongly with the market. More than 90 per cent of purchasers at Candela Ivanhoe are owner-occupiers, with buyers ranging from downsizers and second-home buyers to young families and first home buyers, creating a genuinely multi-generational community of grandparents, parents and children. It reflects a broader shift across Melbo​​urne's apartment market, where buyers are increasingly prioritising neighbourhood quality, lifestyle amenity and long-term liveability.

Currently under construction by Ironside, Candela Ivanhoe comprises 58 apartments. Candela Ivanhoe is scheduled for completion in the coming months, and residents can move in from September. One to four bedroom residences, prices from $649,000 and limited opportunities remaining.

[smartcode_project_cta:default project_id=342]

Location and lifestyle drive demand at Candela Ivanhoe

As apartment buyers increasingly look beyond the four walls of their residence, the quality and depth of shared amenity has become a defining factor in how developments are designed and experienced, particularly in the high-rise, new apartment development space.

In Southbank, where high-density living continues to evolve, developers are placing greater emphasis on creating environments that support wellbeing, connection, and convenience as part of everyday life.

That approach sits at the heart of <a href="https://www.apartments.com.au/new-apartments/aura-at-melbourne-square-7-hoff-boulevard-southbank-vic-3006">AURA</a>, the latest residential tower in <a href="https://www.apartments.com.au/developers/osk-property">OSK Property</a>’s $3.5 billion Melbourne Square precinct. Rising 67 storeys above Hoff Boulevard, the 673-apartment development has been conceived around what OSK describes as a “vertical wellness ecosystem”, a layered collection of amenities that extends throughout the building rather than being confined to a single podium level.

[smartcode_project:default project_id=151921 project_image_fid=370263]

The amenity offering begins on the seventh level within the AURA Club, a dedicated resident hub focused on health, relaxation, and daily convenience. Here, residents will have access to an indoor swimming pool, cold plunge, spa, sauna, and steam room, alongside a fully equipped gym, reformer Pilates studio, and yoga room.

The wellness facilities are complemented by a range of spaces that acknowledge the changing ways people live and work. Work-from-home lounges and co-working areas sit alongside a library, music room, games room, cinema facilities, and open-air terrace spaces, providing residents with flexible environments that can adapt throughout the day.

[smartcode_project:default project_id=151921 project_image_fid=367468]

Beyond the internal amenity, AURA introduces a series of Japanese-inspired gardens that form a quieter counterpoint to the tower’s social spaces.

Landscaped retreats feature curated outdoor dining, tranquil courtyard seating, fire pit, and a tea house pavilion. Rather than functioning as simple recreational areas, the gardens have been designed as places for reflection and informal gathering, drawing on principles of balance, nature, and calm that underpin the project's broader design philosophy.

[smartcode_project:default project_id=151921 project_image_fid=367810]

The social amenity continues to evolve as residents move higher through the building. Levels 49 and 50 house the Meridian Club, where a lounge bar, conservatory spaces, and private dining rooms take advantage of elevated city views. At the summit of the tower, the exclusive Cumulus Club spans Levels 66 and 67, offering additional lounges, private dining, and meditation and treatment rooms positioned above Melbourne’s skyline.

For OSK Property, the extensive amenity offering reflects a broader focus on wellbeing as a core component of apartment living rather than an added feature.

“Aura stands tall as an exemplar of holistic wellness – its focus on social, physical and mental health culminate in a building that is calming, restorative and relaxing, where residents will have their own sanctuary within the well-connected and sought-after Southbank,” says OSK Property CEO Chong Boon Woon.

[smartcode_project:default project_id=151921 project_image_fid=367796]

AURA’s amenity strategy extends beyond the tower itself through its integration with the wider Melbourne Square precinct.

Residents will have direct access to Kennedy Park, Southbank’s 3,745 sqm landscaped public park, alongside a full-line Woolworths supermarket, childcare centre, hospitality venues, and approximately 1,600 sqm of additional retail planned within AURA’s lower levels. Together, these elements create a highly connected residential environment where daily needs, recreation, and wellness are woven into the fabric of the community.

[smartcode_project:default project_id=151921 project_image_fid=370253]

As Melbourne’s apartment market continues to mature, developments are increasingly judged by the lifestyle they provide beyond individual residences.

Through its combination of wellness facilities, landscaped retreats, social clubs, and precinct-wide amenity, AURA represents a shift toward a more comprehensive model of vertical living, one where shared spaces play as significant a role as the homes themselves.

[smartcode_project_cta:default project_id=151921]

AURA elevates amenity living at Melbourne Square

Builder-developer Scion is the latest to target Sydney's booming Hills Showground Metro precinct, filing plans for more than 100 apartments within walking distance of the station.

Scion has lodged a concurrent rezoning and State Significant Development Application for <a href="https://www.apartments.com.au/new-apartments/27-33-middleton-avenue-castle-hill-nsw-2154">27–33 Middleton Avenue</a>, where it plans to replace four existing homes with an 11 and 14-storey mixed-use development comprising 109 apartments, six affordable housing dwellings, and a ground-floor café.

Designed by BHK Architects, the proposal includes three levels of basement parking with 174 spaces, more than 1,200 sqm of communal open space, and extensive landscaping across the 3,791 sqm site.

The development has been designed as two buildings connected by a recessed wintergarden spine, with the 14-storey building positioned to the south and the 11-storey building to the north.

<img alt="Scion" data-entity-type="file" data-entity-uuid="64dc359d-736b-43b8-87a8-70a8285cab47" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-25%20at%208.47.01%E2%80%AFPM.png?VersionId=PXh.m8id_aevBPHEckPf88wQ2RQThPos" />

The apartment mix has been weighted towards owner-occupiers, with 13 one-bedroom apartments, 55 two-bedroom residences, 31 three-bedroom apartments, six three-bedroom lofts, and four four-bedroom homes. Six apartments will be dedicated as affordable housing in line with the NSW Housing SEPP.

According to the Architectural Design Report by BKH, the proposal seeks to create "a place-responsive architecture" inspired by the natural landscape surrounding Cattai Creek, while strengthening the public domain through landscaping, active frontages and a neighbourhood café.

Atlas Urban, in its Urban Design Report, says the proposal takes a different approach to increasing density around Hills Showground Station by favouring a more slender, vertically articulated built form over a conventional mid-rise outcome. The report argues this allows for greater deep soil planting, improved solar access and a better public domain outcome, while still delivering additional housing close to rapid public transport.

The site sits around 500 metres from Hills Showground Metro Station, within a precinct earmarked for significant residential intensification following the opening of the Sydney Metro Northwest line. Planning documents accompanying the application note that Greater Sydney's population has grown by more than one million people since planning for the precinct first began, reinforcing the need to accelerate housing delivery around existing transport infrastructure.

Scion is expanding its development pipeline which also includes <a href="https://www.apartments.com.au/new-apartments/chatham-west-ryde-2-6-chatham-road-west-ryde-nsw-2114">Chatham in West Ryde</a>, 62 apartments which are approaching completion. They also have a State Significant Development Application with the NSW Government's Housing Delivery Authority for <a href="https://www.apartments.com.au/new-apartments/96-anzac-avenue-west-ryde-nsw-2114">145 apartments on Anzac Avenue</a>, also in West Ryde.

First look: Scion plots Castle Hill apartment development near Hills Showground Metro Station

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>&nbsp;has unveiled its scaled-back plans for a pair of towers rising up to 49 storeys directly opposite Bella Vista Metro Station.

The builder-developer will deliver 674 apartments and a new mixed-use hub at the gateway to the station precinct.

The State Significant Development Application has been lodged under the Housing Delivery Authority pathway for the 6,979 sqm site at <a href="https://www.apartments.com.au/new-apartments/9-11-mawson-avenue-bella-vista-nsw-2153">9-11 Mawson Avenue</a>, with the apartments sitting above a mixed-use podium. Initial plans were for closer to 900 apartments across two 40-storey towers.

Located around 30 metres from the Bella Vista Metro Station entrance, the development is intended to act as a catalyst for the long-planned Bella Vista Station Precinct, transforming a vacant site into a transit-oriented residential and commercial destination.

Planning documents describe the project as delivering "a high-density mixed use destination that combines housing, retail and community-serving uses in a highly accessible setting."

<img alt="First look: Urban Property Group plans 674-apartment Bella Vista towers opposite Metro station" data-entity-type="file" data-entity-uuid="21c08216-589e-490d-ad08-2d88b6fa62d9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bella%20vista%20podium.png?VersionId=3TnwjjQCNwTsmyQRaWnFrLTSAF0CJeka" />

Designed by <a href="https://www.apartments.com.au/architects/turner-studio">Turner</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, the project comprises 674 apartments, including 102 affordable housing dwellings representing 15 per cent of the residential floor space. The housing mix spans studios, one, two and three-bedroom apartments, alongside a collection of townhouse-style residences integrated into the podium levels. The development also includes specialist disability accommodation and an elevated provision of adaptable and liveable housing.

The mixed-use podium has been designed to create an active urban centre around the Metro station, incorporating a 1,423 sqm supermarket, a 3,029 sqm gym, specialty retail spaces, a 100-place childcare centre and a publicly accessible "city room" community space. A secondary laneway, active frontages and landscaped public areas are intended to improve pedestrian connectivity through the site and strengthen links between the station precinct and surrounding neighbourhood.

In the project's design report, Turner said the proposal responds to Bella Vista's emerging role as a higher-density centre within Sydney's north-west growth corridor.

"The project transforms a strategically located site into a high-density mixed use destination that combines housing, retail and community-serving uses in a highly accessible setting," the report states.

"Active frontages, a publicly accessible city room, a secondary laneway and a mix of uses including a local supermarket, child care centre and gym create a more complete and socially useful urban environment for residents, workers and the wider community."

<img alt="First look: Urban Property Group plans 674-apartment Bella Vista towers opposite Metro station" data-entity-type="file" data-entity-uuid="0fde6220-82de-4f6a-9b63-d0fd8157acc9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bella%20vista%20da.png?VersionId=7hEmuSutH8plTd_RqqdmPu055F6qe554" />

Urban Property Group has been one of the busiest developers across Greater Sydney this year.

The developer is progressing around 1,000 apartments across <a href="https://www.apartments.com.au/news/nsw/first-look-urban-property-group-plans-next-major-wollongong-tower">two projects in Wollongong</a>, with several thousand more homes in the pipeline across Newcastle, Castle Hill, Little Bay and Penrith.

Staff reporter

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