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The latest ABS figures on housing approvals show that NSW had a slight lift of 1.1% but proposed planning reforms could boost this by much more, according to the Urban Taskforce.  
“A detailed breakdown of the August housing approval numbers show that higher density housing is propping up the overall housing supply in NSW," Urban Taskforce CEO, Chris Johnson, says.  
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/10/03/housing-approval-oct-3-big.jpg" title="Click to enlarge"><img src="/images/stories/2013/10/03/housing-approval-oct-3-small.jpg"></a>
The Urban Taskforce is a property development industry group, representing some of Australia’s most prominent property developers and equity financiers.  
“Since the GFC, higher density approvals have risen from a low of 847 a month to the current 1,839 a month, while house approvals over the same time have risen from 1,165 to 1,674.  
“The proposed planning reforms must support the growing trend towards higher density housing by giving the development industry certainty about what is achievable,’’ Mr Johnson said.  
‘’We are concerned that the recent move by the state government away from code assessable determinations towards merit-based determinations will make the approval process harder to achieve.  
‘’Many of the recent approvals for apartment buildings have come through the now eliminated Part 3A process where the state government gave support for larger projects.  
“The Urban Taskforce supports the planning approach of involving communities in the master planning of precincts where the overall planning rules are determined. If a detailed application then complies with these rules it should get a quick determination.  
“The planning reforms must not be further watered down or the supply of housing in NSW will suffer. This will make new housing less affordable and drive rents up.  
"Every 10 square metres of space saved by good design can save $90,000 on the cost of an apartment. If we are serious about affordable housing in Sydney then we must not have excessive standards that add hundreds of thousands of dollars to the costs of apartments."
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Proposed planning reforms would boost NSW housing approvals: Urban Taskforce

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Yesterday’s RBA decision to leave the cash rate on hold has received positive market responses.
A range of financial groups believe current positive economic data correctly encouraged the bank to hold its ground at 2.5%, with no rush for further cuts until possibly early in the new year.
Mortgage Choice spokesperson Jessica Darnbrough said rising consumer sentiment, improving business confidence and climbing dwelling values, showed there was no urgent need to cut rates this month.
“Consumer sentiment and business confidence have both seen a dramatic improvement over the past month, hitting levels not seen in recent times. According to the Westpac-Melbourne Institute Index of Consumer Sentiment, confidence rose 4.7% in September to be 13.8% higher than when the Reserve Bank first cut the cash rate in November 2011.
“Similarly, the NAB Monthly Business Survey found business confidence strengthened considerably in August, rising to its highest level since May 2011.
“In addition, capital city dwelling values recorded a modest 0.5% increase in August, taking the cumulative recovery in residential values to 7.0% since the market bottomed out in May last year.”
The ANZ Bank says the RBA’s ‘steady as she goes’ approach remains appropriate. ‘’Their text was almost identical to that released after the August and September board meetings,’’ chief economist Ivan Colhoun said.
‘’Importantly, there was no upgrade to the bank’s easing bias, which suggests a reduced likelihood of any further reduction in interest rates before Christmas.’’
The ANZ has pushed its forecast for the final cut in this interest rate easing cycle out to February 2014, but assesses that we are close to the bottom of this cycle.
‘’A number of elements in the RBA’s statement suggest it remains comfortably on hold in the near-term:
* There has been an improvement in indicators of household and business sentiment recently, though it is too soon to judge how persistent this will be (the implication: wait and see);
* The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values. The full effects of these decisions are still coming through and will be for a while yet.
* There is continuing evidence of a shift in savers’ behaviour in response to declining returns on low-risk assets. The implication here is that monetary policy is working. The growth outlook would need to change substantially to require a further move in rates in the near-term.
Mr Colhoun said after easing in August, the RBA reverted to standard phrases “the setting of monetary policy remained appropriate” and “the Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target”.
He said these phrases have often been used when policy is seen to be correct and no near-term adjustment is considered likely. These statements were repeated this month.
The minutes to these board meetings provided some further information: “Given the substantial degree of policy stimulus in place, the Board judged that it was appropriate to retain the current setting of interest rates. Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them. The board would continue to examine the data over the months ahead to assess whether monetary policy is appropriately configured.” This paragraph indicates a mild but relatively inactive easing bias in the near-term.
Mr Colhoun said phrases that have typically been used to suggest the possibility of a near-term move in rates in recent times have included reference to “scope to ease” and “policy remains appropriate for the time being”. The absence of these phrases today suggests the minutes to this meeting will again report no move on rates is likely in November.
‘’By inference, given the November meeting contains additional information on the CPI and the Bank’s new GDP forecasts, there’s a reduced likelihood for a cut at the December meeting. This suggests no further cut in interest rates is likely before the February board meeting, at the earliest, and an increased likelihood that we may already be at the low in the cycle.’’
The ANZ continues to keep a February interest rate cut in its profile, believing that a higher jobless rate and weaker mining investment keep open the option that the RBA takes out some further insurance, although Mr Colhoun says it’s preferable the AUD falls further instead.
‘’The bank believes we are close to the low in the cash rate cycle, given the improving housing sector, better global growth news and accommodative monetary policy. The wind back in mining investment, however, is expected to see interest rates remain at a relatively low level throughout 2014.’’
The CEO of the Real Estate Institute of Australia, Amanda Lynch, has welcomed retention of the low cash rate. “The board has made a considered and accurate assessment of the property market, and we are pleased media speculation about a housing bubble has been dampened.”
Ms Lynch said official rates had been slashed by a total of 2.25 percentage points since this cutting cycle began in November 2011. “As a result of the easing monetary policy, housing affordability is now at its lowest level in a decade. Nationally, it now takes 28.7% of the median family income to meet average loan repayments.”
In its September 2013 Financial Stability Review, the Reserve Bank warned home buyers to maintain realistic expectations of future dwelling price growth, Ms Lynch said. The bank associated an increase in property market activity over the past year, particularly in NSW and from investors, with the recent increases in housing prices.
“Some markets are performing well but this growth is not, by any means, Australia-wide,” she said.
“We believe that maintaining the banks’ high lending standards is crucial to continued sustainable growth in the Australian housing market.
“Rates, however, need to stay low to provide much needed confidence to first home buyers and increase building activity.”
Leading financial comparison website RateCity says the current low interest rates are likely to remain.
CEO Alex Parsons said variable rate borrowers with a typical $300,000 home loan would be around $600 better off by the end of the year, based on the previous two rate cuts in May and August 2013.
“Since January we’ve seen the cash rate slashed by 0.50 percentage points, with the mid-year cuts representing big savings for some variable borrowers,” he said.
“Compared with this time last year, variable rate borrowers are paying $171 less per month on average to service the same $300,000 home loan.”
But Mr Parsons said the RBA’s decision to keep rates on hold would continue poor returns for savers. He urged them to ‘’shop around’’ and compare rates.
“While many savings accounts offer rates around the 3% mark, it is possible to find higher interest savers paying a maximum rate of up to 4.77%, so it’s vital they shop around to ensure they are maximising their profit margin.”
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How the industry reacted to the RBA decision

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The property market is changing all the time. New selling conditions confront – and confuse – buyers on a daily basis. To be successful, purchasers must overcome all kinds of strategic challenges, with those best able to read the tea leaves well placed to win the deal.
Buyers’ agents go all over their stomping grounds, so they have a wider view of the market, without preconceptions or emotional attachment to any particular property. Ideally, they never sell property – only help buy it - so they are independent. And, not being paid by selling agents or developers, they have no conflict of interest.
Property Observer asked a few for tips on buying in a ‘hot’ market.
"In a hot or cold market the key is to be prepared, but in a hot market you don’t have the luxury of time,’’ said Rich Harvey, managing director of Sydney buyers’ advocate Propertybuyer, which he founded in 2001.
"For example, in a hot market you might not have time for multiple inspections, or even to call your wife to arrange to get her over for a quick inspection.
"To buy successfully it’s important to have all your ducks all in a row. You have to know the current condition of the market and do your research extremely well.
"This includes having a solicitor or conveyancer ready to act promptly, with documents prepared, and you have to have had the property thoroughly inspected by various trades experts – such as for plumbing and electrical faults, termites and building permits.
"But the most important thing is to have clear finances in place so you can make an unconditional offer to the vendor. This will greatly improve your chances on the day.’’
In Melbourne, Frank Valentic, managing director of Advantage Property Consulting, based in the Elwood, St Kilda  and Ormond areas, said buyers should stick to a budget but be prepared to push themselves an extra $10,000-$20,000 to ‘’beat the competition’’.
"Buyers should avoid the trap of getting over-emotional in negotiating or bidding by having a family member or professional assist them. They should also make offers prior to auction to get around any emotional issues.
‘’An important tip is to have finance pre-approved in writing and a full 10% deposit ready so as to be able to make unconditional offers.’’
Mr Valentic said buyers’ agents had access to off-market opportunities and ‘distress’ sales creating more opportunities.
"Hopeful buyers should do their due diligence by attending auctions to get a good feel for the market and a feel for what a property is worth. They should stay in touch with local agents in their preferred areas so they are the first to learn of new listings.’’
Over in Perth, Gavin Hegney, executive chairman and founder of the Hegney Property Group, can draw on 30 years’ experience in Western Australia’s property industry. He’s seen three booms, three busts and three market cycles, so he knows his onions.
"My first thought is that buyers shouldn’t be aiming to buy in a ‘hot’ market. However, if they must, it would be best to look for the reasons behind the spike in prices in one sector and try to anticipate where prices will rise nearby - then take advantage.
"For example, why pay more for one type of product in a ‘hot’ suburb when, with a realignment of their thinking, they could buy a different type of property nearby, and reap the rewards later.’’
Mr Hegney said buyers should try to quantify what a property is really worth – not what they are being asked to pay for it. ‘’If people know what a property is worth they should have the confidence to buy in a ‘hot’ market.’’
He said buyers should also be able to anticipate rising prices near pending developments, such as around the Barangaroo South precinct on Sydney harbour. They would then benefit from any ‘hot’ market the big development later generates.
Ben Reid, of Vendor Advocacy Australia, said too many prospective buyers went in ‘green’ and did not have a clear understanding of what they were buying and where to get it.
"You’ve got to do your research,’’ he said. ‘’Too many go into a suburb with no idea of values. It really takes two or three months of actively looking and searching in an area to be educated enough and to get a good idea of market conditions.
"My overall No. 1 tip is to look for the best location, location, location. Also, look for property in consistently performing suburbs, or those close by which will benefit from that proximity, such as Thornbury near Clifton Hill or Bentleigh near Brighton in Melbourne.
"Stay away from property on main roads, near power generation sources or tunnelling, such as around the new East-West Link."
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Tips for buying in a hot market

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Word on the street is that the Reserve Bank won’t cut the cash rate when it meets today. However, one of Australia’s biggest comparison websites - <a href="https://finder.com.au/">finder.com.au</a> – says borrowers can still find ways to save on their home loans by exploiting competition among lenders.  
The company’s resident rate experts – who include eight leading economists – expect the RBA to keep the cash rate at 2.50%.  
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td valign="top">
finder.com.au’s resident rate experts
</td>
<td valign="top">
Do you think the Reserve Bank will move the cash rate on October 1?
</td>
</tr>
<tr>
<td valign="top">
Warren Hogan, ANZ
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Janu Chan, St George Bank
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Scott Haslem, UBS
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Alan Oster, NAB
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Michael Witts, ING Direct
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Paul Bloxham, HSBC
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Shane Oliver, AMP
</td>
<td valign="top">
No
</td>
</tr>
<tr>
<td valign="top">
Carla Boldock, RAMS
</td>
<td valign="top">
No
</td>
</tr>
</tbody></table>
Source: finder.com.au
Despite this, there is still significant opportunity to save as lenders fight for market share.  
For instance, the major four banks – ANZ, Commonwealth, NAB and Westpac – increased market share over the past year, while non-bank lenders continue to undercut by offering cheaper deals.  
According to Australian Prudential Regulation Authority data crunched by <a href="https://finder.com.au/" target="_blank">finder.com.au</a>, the big four banks now claim up to 85% of the total value of owner-occupied home loans of all banks as at July 2013, up from 80% in July 2012.  
Of the ‘Big Four’, NAB and Westpac offer the lowest advertised packaged variable rates for a $300,000 home loan, at 5.08%.  
But finder.com.au says non-bank lenders lead the pack overall: the lowest rate for this loan size is 0.53 percentage points cheaper at 4.55% by lender loans.com.au.  
Spokesperson at finder.com.au, Michelle Hutchison, says many borrowers and first home buyers are unaware of the fight for market share between lenders and are missing out on potentially thousands of dollars by not comparing home loans online.  
“While the major banks continue to be the most popular lenders among borrowers, smaller lenders are quietly fighting back by undercutting the major banks on more fronts. Many non-bank lenders are growing more diverse with their product and service offerings, and continue to beat the major banks on price.  
“It’s easy for borrowers, particularly first home buyers, to go straight to a major bank, but it could end up costing them thousands. For instance, the difference between the lowest variable rate of the major four banks for a $300,000 home loan (5.08%) compared to the lowest variable rate for this loan size on finder.com.au (4.55%) would cost $96 extra per month, $1154 every year or over $34,000 over the life of a 30-year loan term.”  
How to score a better home loan this spring:
<ol>
<li>
There’s no loyalty in the home loan market: if you’ve had a Dollar Mite account since you were a kid it doesn’t mean you will get a better rate on your home loan. And borrowers who have been with same lender for a long time won’t necessarily get a good deal either. Don’t rely on lenders to tell you that you’re getting a good deal – make sure you know by comparing loans and negotiating hard.
</li>
<li>
Compare online before hitting the market: finding the right home loan, getting pre-approval and working out how much you can afford to borrow before you start bidding is the key to financial stability. You can do all of this on comparison sites like finder.com.au.
</li>
<li>
Keep aside an emergency buffer: be careful when working out your budget. If you can only afford monthly repayments of $2000, at the current average variable rate of 5.63% that could be a loan size of $347,000. But, if rates rise to 7%, the loan will cost an extra $309 a month. Factor in a buffer as rates won’t stay this low forever.
</li>
</ol>
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Experts tip RBA to keep rates on hold

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While borrowers wait each month to see whether the Reserve Bank moves on rates, financial research organisation CANSTAR advises that some mortgage holders could save significant amounts by simply switching to better-value products.  
Commenting ahead of today’s rates announcement, research manager Mitchell Watson, said: “This month, the expectation is that rates will be left on hold. Post federal election consumer confidence is at a high and business confidence seems to be improving. The media focus at the moment is on the existence or otherwise of a housing bubble and, while that may or may not be the case, all signs point to rates being left on hold.  
“Irrespective of the RBA decision, though, mortgage holders need to check the interest rate they’re paying and ensure that it’s at the lower end of the scale. Currently, on the CANSTAR database, the difference between the highest and lowest standard variable mortgage rate is 2% – the equivalent of seven RBA rate cuts all the way back to December 2011.  
‘’On a 25-year $300,000 loan, that equates to $360 in additional monthly repayments.
Over the life of the loan it adds up to more than $100,000 in additional interest payments.  
‘’The difference between the average and lowest standard variable rate is just shy of 1%, or the equivalent of the past four RBA rate cuts.’’  
 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="272" valign="top"></td>
<td width="197" valign="top">
Average rate as at Tuesday 1 October
</td>
</tr>
<tr>
<td width="272" valign="top">
Average standard variable home loan rate
</td>
<td width="197" valign="top">
5.44%
</td>
</tr>
<tr>
<td width="272" valign="top">
Lowest standard variable home loan rate
</td>
<td width="197" valign="top">
4.49%
</td>
</tr>
<tr>
<td width="272" valign="top">
Highest standard variable home loan rate
</td>
<td width="197" valign="top">
6.50%
</td>
</tr>
</tbody></table>
Source: <a href="https://www.canstar.com.au/">www.canstar.com.au</a>. Represents average rate across products on CANSTAR’s database      
<table border="0" cellspacing="0" cellpadding="0" align="left" style="width: 470px;"><tbody>
<tr>
<td width="372" colspan="2">
Potential cost of $300,000 mortgage over 25 years
</td>
</tr>
<tr>
<td width="169" valign="top">
Interest rate
</td>
<td width="203" valign="top">
Total loan repayment
</td>
</tr>
<tr>
<td width="169" valign="top">
4.49%
</td>
<td width="203" valign="top">
$499,739
</td>
</tr>
<tr>
<td width="169" valign="top">
5.00%
</td>
<td width="203" valign="top">
$526,131
</td>
</tr>
<tr>
<td width="169" valign="top">
5.50%
</td>
<td width="203" valign="top">
$552,679
</td>
</tr>
<tr>
<td width="169" valign="top">
6.00%
</td>
<td width="203" valign="top">
$579,871
</td>
</tr>
<tr>
<td width="169" valign="top">
6.50%
</td>
<td width="203" valign="top">
$607,686
</td>
</tr>
</tbody></table>
                Source: Canstar
CANSTAR’S Home Loan Star Ratings, released last week, compare 1832 home loans from 105 lenders across seven categories of floating, fixed rate and line-of-credit loans for both residential and investment purposes.
 
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Borrowers could save by switching to better value products: CANSTAR

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The low mortgage rate ‘holiday’ may be set to continue, with speculation growing that the Reserve Bank of Australia could be about to make further cuts to the official cash rate in the coming months. As a result, a growing number of borrowers are opting for variable rate home loans.  
National new home loan approval figures from broker Mortgage Choice show variable rate home loans jumped to their highest level since February this year, accounting for 73.14% of all home loans written in September.  
Of the variable rate products, ongoing discount rate loans again proved the most popular among borrowers, accounting for 39.52% of all loans written.  
Mortgage Choice spokesperson, Jessica Darnbrough, says it is not surprising to see so many homebuyers choosing variable rate loans, especially given the competitiveness among lenders.  
"Interest rates are currently at historically low levels and there is evidence to suggest they could fall further still. Lenders are not only competing aggressively for market share through very sharp pricing, but other incentives as well, including fee waivers, refinance rebates and cash-back offers to name but a few," Ms Darnbrough said.  
"With this in mind, it is not unreasonable for borrowers to opt for a variable rate home loan."  
While variable rate home loan approvals are on the rise, fixed rate demand slipped to an eight month low of 26.86%. Interestingly, Queensland was the only state that didn't record a drop in approvals for this loan type, with fixed rate demand jumping 4.24 percentage points to 36.40%.  
"It seems borrowers in Queensland are still feeling uncertain about current economic conditions and so are keen to lock in rates now rather than relying on a further rate cuts," Ms Darnbrough said.  
"By locking into a fixed rate, borrowers are provided with a level of certainty and stability - something Queenslanders appear to be calling out for."   Archived copies of the Homeloan Choices bulletin can be found at <a target="_blank" href="https://mortgagechoice.com.au/about-us/home-loan-choices-newsletter-subscription">Mortgage Choice</a>. 
<img alt="MORTGAGE-RATE-OCT-1-ONE" height="372" width="470" src="/images/stories/2013/10/01/MORTGAGE-RATE-OCT-1-ONE.jpg">
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Variable home rates surge with speculation of further rate cuts

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The residential rental market has weakened across the state, according to data released by the Real Estate Institute of NSW.
The August 2013 REINSW Vacancy Rate Survey found availability across the Sydney metropolitan area down 0.2% to 2.0%. The survey found:
• Inner suburbs (0-10km from CBD) were down 0.1% to 2.4%
• Middle suburbs (10-25km from CBD) were down 0.2% to 1.8%
• Outer suburbs (more than 25km from CBD) were down 0.1% at 1.8%
“All Sydney suburbs saw declines due to less stock being available to those seeking rental properties,” REINSW president Christian Payne said.
“This is cause for concern after increases in availability over the previous four months. Declines were
seen in most areas across the state.’’
The Illawarra was hit hard with a fall of 0.7% to 2.1% across the region and a drop of 0.7% in Wollongong to 2.5%. The South Coast was down 0.7% to 2.5%.
The Hunter slipped 0.3% to 3.0%, despite a rise of 0.2% in Newcastle to 2.6%. Albury and New England also bucked the trend with an increase of 0.5% to 1.9% and 0.2% to 2.9% respectively.
The Central Coast fell 0.3% to 2.3%, while Northern Rivers was down 0.3% to 2.8%. Orana had a vacancy rate of just 1.0% after a drop of 0.3%.
Coffs Harbour continues to be the easiest place to find rental accommodation even though it slipped 0.1% to 3.6%.
 
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Vacancy rates drop across the board

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A private motor dealership has paid more than $3 million for a prominent mixed-use site in Mill Park.
The 2 Oleander Drive, Mill Park, site of 5167 square metres was sold through expressions of interest by CBRE’s Jamus Campbell and Scott Orchard, and Gross Waddell’s Jonathon McCormack and Daniel Greenlees
The vendors were Gibson Property Corporation and Roche Property Group, who are developing the Mason Point precinct.
Campbell said the prominent location - in the prominent Mason Point development - was a key factor behind the sale. “Mason Point is one of the largest mixed-use developments in Melbourne’s north. It’s set to become home to more than 800 residents and the workplace for around 1,000 employees.”
Mason Point is anchored by Westfield, Bunnings, Masters and Toyota.
The site offers ready access to east and west connections between Epping and Greensborough via McDonalds Road, and also north and south connections between Whittlesea and the CBD via Plenty Road.
The property also has a street frontage to busy McDonalds Road which handles more than 20,000 vehicles per day.
For further information about Mason Point, visit <a href="https://www.masonpoint.com.au/">www.masonpoint.com.au</a>.
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Mixed-use site snapped up for $3 million

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Interest in some properties in the Queensland property market has been less than favourable, with some desperate vendors dropping asking prices by as much as half in a bid to attract buyers.
And that’s not the longest wait: one spent 742 days waiting for a buyer before finally going under contract in the past few days.
Another, at 34 Seraya Court, Closeburn (pictured below) is for sale at $795,000 - at least a 45% discount from the original asking price.
{yoogallery src=[images/stories/2013/09/05/close]}
The SQM Research list shows the top 10 most discounted properties from the statistical division of Brisbane. Most have spent many weeks there. And the lack of interest covers all price points – from that low of $205,000 to a high of $2.3 million in Brisbane city.
These lengthy stays on the market and savage discounting back up SQM Research’s disdain for the Queensland market over recent years. Managing director Louis Christopher declared certain regions "basket cases" early in 2011.
The researcher’s recent <a target="_self" href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=75b41ec5ca&amp;e=0aab96dc54">Brisbane Housing Boom and Bust Report</a> outlines the case for Brisbane house prices "to remain relatively flat" through 2013 – which, compared to recent years, is considered good news. "In other words, for the most part we believe that many localities within Brisbane and other regions of Queensland - such and the Gold and Sunshine coasts - have "bottomed out," he said.  Christopher will air his views about the Queensland property market at an Afternoon of Property seminar on September 19.
Click to enlarge
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Brisbane's top 10 most heavily discounted properties: SQM

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The Reserve Bank’s decision last month to cut the cash rate prompted a growing number of borrowers to take advantage of the current low interest rate environment by choosing both standard and basic variable rate home loans, national new home loan approval figures from Mortgage Choice show.
Basic variable rate loans amounted to 12.64% of all new home loans by the broker in the month, up from 10.99% in July. Standard variable rate loans also rose to 16.51%, up from 14.94% in July and up from 12.36% in June this year.
“With the official cash rate at an all-time low after the cash rate cut in August, and talk of at least one more cut this year, borrowers appear to be taking advantage of recent sharp variable rate pricing,’’ Mortgage Choice spokesperson, Melissa McCarney said.
“This increase in demand for both basic and standard variable rate loans may be driven by borrowers seeking loan options with no annual fee, which is the case with basic and standard variable loans, but not so with other loan types like ongoing discount loans.”
Ongoing discount rate loans are still popular with borrowers, but they lost favour slightly last month, falling by 2.08 percentage points to 37.47%.
Demand for fixed rate loans fell for the third month to 27.86% at a national level, but at a state level both NSW and Victoria had rises in demand for this loan type. Preferences for fixed rates in NSW jumped from 30.76% in July to 32.67% in August, while Victoria grew from 15.32% in July to 18.79% this month.
“It seems borrowers in both NSW and Victoria are keen to lock in rates now rather than banking on a further official cash rate cut in the months to come. For these borrowers the security of a fixed rate home loan may be more appealing than the flexibility and features offered by variable rate loans,” McCarney said.
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Demand for variable rate loans on the rise in August

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Stephen Taylor

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