The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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The RBA cash rate decision came out at 2.30 today with the decision to hold yet again. 
Some 24 of 25 economists expect the cut at the August meeting.
CoreLogic head of research Tim Lawless said the RBA has looked through the fog of political uncertainty and global volatility to keep the cash rate on hold. 
"From a housing market perspective there has recently been renewed heat in the Sydney and Melbourne markets where, according to the CoreLogic Home Value Index, the trend rate of growth has bounced higher over the past three months," he said.
"The reversal in what was previously a moderating trend in housing market conditions was likely to have been a concern to the RBA, however CoreLogic's June data showed a slower pace of capital gains compared with April and May which may indicate the recent surge in dwelling value appreciation will be sort lived. 
The chances of interest rates moving lower in August remain high;  June quarter inflation data will be available late this month, providing a timely read on consumer prices prior to the August RBA meeting.  It is likely that the inflation figures will come in well below the RBA target range of 2-3 percent. 
"If that is the case, there is a high likelihood that interest rates will move lower next month. The challenge for policy makers and regulators will be to ensure lower mortgage rates don’t refuel a higher rate of growth in the Sydney and Melbourne housing markets where affordability is already stretched and rental yields are pushing to new record lows each month."
LJ Hooker chief executive officer Grant Harrod said a cash rate cut could still come by the traditionally busy spring selling season if market conditions did not resume promptly.
“Sellers can be put off by elections and we’ve just come out of one of the longest campaigns held in Australia,” he said.
“During the recent campaign, listings across the board were down an average of 5 percent across the country compared to the same period last year.
“But history has shown listings rebound after a poll and the RBA, through holding the cash rate at the record low of 1.75 percent today, is waiting for this to happen.
“Buyer enquiry has remained strong throughout the election campaign while the average capital city auction rate hit as high as 72 percent over the period. There’s a strong opportunity for sellers to capitalise on that interest now and beat their competitors ahead of the traditional spring listing period.
"The RBA would still keep an eye on any property ramifications of the Brexit outcome.
“We don’t anticipate any impacts to filter through to the actual property market in the immediate future due to the time it takes to transact. But it may turn out that we benefit from the global conditions as investors seek out alternatives to London.”
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jonathanchancellor-7SQnKwU6yx

RBA holds again at July 2016 meeting

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Recent analysis of economic indicators conducted by RateCity.com.au indicates the RBA will hold its current cash rate at 1.75 percent due to the Federal Election results and potential fallout from Brexit.
Peter Arnold, RateCity.com.au data insights director said the RBA is unlikely to jump in without seeing how it all plays out.
“With the election still too close to call, the RBA will want to see how the nation and the government settle in before making a move,” he said.
“While the dust settles on last month's unexpected Brexit vote, leaving the world economy in tatters, the RBA is unlikely to act without seeing the full implications.
"Mortgage holders shouldn't be disappointed if the cash rate remains steady in July, as the banks have been taking matters into their own hands in recent weeks.
“Almost 180 fixed home loan rates were slashed in the last month, suggesting that there is at least one more rate cut to come this year, but the RBA is likely to hold it for another day."
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RBA to continue wait and see approach: RateCity

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The majority of respondents to a survey conducted by online agency iBuyNew found 66 percent of those polled believe the RBA is likely to maintain its cash rate at the current rate of 1.75 percent for the rest of 2016.
Only 23 percent of respondents believe there will be further cash rate cuts, with 11 percent expecting official rates to rise again.
iBuyNew chief executive officer Mark Mendel said while there is pressure on the RBA to possibly lower rates as soon as its board meeting, most of those polled are anticipating more rate stability.
“With so much for the central bank to digest from the Brexit fall out and after an eight week federal election campaign which has proven to be inconclusive, it will be no surprise to see the RBA stay on hold in July,” he said.
“It's only two months since the RBA cut the cash rate to its historical low and they still have some room to move on rates going forward.”
iBuyNew survey results: 
Do you think the Reserve Bank will take any action on official rates again this year?
Interest rates will remain on hold                      66 percent
Interest rates will increase                                11 percent
Interest rates will decrease                               23 percent
 
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Interest rate relief not expected from RBA: iBuyNew

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GUEST OBSERVER
The unexpected outcome of the Brexit vote injected a good dose of uncertainty and volatility into financial markets, especially in Europe and the UK.
A flight to safety saw the US dollar appreciate relative to other currencies and, while currencies and stock markets have settled down, the Brexit vote will likely echo for a long time to come, durably changing the European political landscape.
Domestically, the federal election has turned out much closer than many expected and it could be some time before the result is finalised. Without new economic data to go by, it is the political uncertainty that dominates the outlook.
Relative to last month, the CAMA RBA Shadow Board’s policy preferences have become noticeably more dovish, reversing the more contractionary stance from the previous month. The Shadow Board attaches a 63 percent probability to a rate hold being the appropriate policy setting. The confidence attached to a required rate cut equals 18 percent, while the confidence in a required rate hike equals 19 percent.
Australia’s unemployment rate and participation rate remain unchanged at 5.7 percent and 64.8 percent. No new data on wage growth has been released since last month.
The turmoil in the financial markets following Brexit has left the Aussie dollar stronger relative to the US dollar; it is trading around 75 US¢. Yields on Australian 10-year government bonds have continued to fall to historic lows, below 2 percent.
Domestic share prices, though slightly more volatile, are largely moving sideways, with the S&amp;P/ASX200 last week closing just under 5300, not far below the recent high of 5430. Global stocks, particularly in European and British markets have lost between 5 percent and 10 percent of their value, following the Brexit vote.
In the wake of the Brexit vote, the global economic outlook is currently dominated by politics, with elections looming in a number of countries and uncertainty in Europe and elsewhere working its way through the global economy. The direct effect of the Brexit outcome on the Australian economy should be minimal but through global capital markets and international trade this far-away event may eventually be felt after all.
Consumer and producer confidence have barely shifted since last month. Capacity utilisation has risen to above 82 percent, while construction output has declined slightly. Retail sales have been growing by a little over 3 percent year-on-year.
The Shadow Board’s confidence measures have reversed somewhat since last month. It attaches a 63 percent probability (52 percent last month) that “no change” is the appropriate policy, an 18 percent probability (11 percent last month) that a rate cut is appropriate and a 19 percent probability (37 percent in the previous month) that a rate rise, to 2.00 percent 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 1.75 percent equals 23 percent (24 percent in June). The estimated need for an interest rate decrease has risen from 16 percent to 29 percent, while the need for a rate increase has fallen 12 percentage points to 48 percent.
A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 18 percent (14 percent in June), while the confidence in a required cash rate decrease equals 26 percent (16 percent in May) and in a required cash rate increase 56 percent (70 percent in June).
 
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Rates should stay on hold under election, Brexit uncertainty: RBA Shadow Board

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GUEST OBSERVER
Population growth is bouncing of the slowest annual pace in almost 10 years.
If population is growing near 1.3 percent, we will need productivity growth near 1.7 percent to maintain the “speed limit” of the economy at 3 per cent. As the Reserve Bank has intimated, the speed limit of the economy has probably come down to a rate closer to 2.75 per cent.
Victoria is still the population leader. You have to go back to 1888 to find a time when Victoria held the position of the state with the fastest population growth. In fact population in Victoria is growing at the fastest pace in six years. In comparison Western Australia and South Australia have the weakest annual population growth rates in 12 and 11 years respectively. A result that resonates with the slowdown and weakness in the driven mining states. Only NSW and Victoria now have an annual population growth rate above long-term averages – important in absorbing the record amount of homes being built.
<a href="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.14.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.14.31%20AM.png" alt="">
It is clear the labour market was the stellar performer over 2015. But there have been a number of signs that employment growth is now in the midst of a consolidation. Job advertisements have shown signs of consolidating in the past couple of months while the monthly employment statistics suggest employment growth has softened. Interestingly the data by industry provides a telling breakdown about where the jobs are being created. Over the three months to May employment grew by almost 47,000. Overall 10 of the 19 industry sectors recorded job gains in the past three months, with the hiring dominated by Healthcare &amp; social assistance, Wholesale trade and Accommodation &amp; food services.
<a href="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.16.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.16.03%20AM.png" alt="">
Overall the labour market remains relatively upbeat. The lift in consumer confidence and business conditions should boost spending, investment and employment once the election is out of the way – a result that should see the jobless rate trend lower to 5.5 per cent by the end of this year.
  Healthcare remains the biggest employer and was also the biggest job creator over the past year. Interestingly Finance &amp; insurance, Construction and Retail were amongst the major employers over the past year – a result that resonates with the lift in activity across the economy.
What does the data show?
Industry employment:
Employment rose by 46,700 over the three months to May after a gain of 4,000 in the previous three months.
Over the past year employment lifted by 224,000 well above the decade average of 190,600.
Employment rose in 10 of the 19 industry sectors. Employment rose most in Health Care and Social Assistance (up 40,700), followed by Accommodation and Food Services (up 20,100) and Wholesale trade (up 17,500).
In the quarter, the number of jobs fell the most in Professional, Scientific and Technical Services (down 34,800), followed by Retail Trade (down 21,900), and Administrative and Support Services (down 18,800).
Healthcare remains the biggest employer with 1.6 million employees (13 per cent of the total) followed by Retail Trade (1.3 million jobs or 10.5 per cent) and Construction (1.08 million or 9.1 per cent).
Population Statistics: 
Australia’s population expanded by 326,100 people over the year to December 2015 to 23,940,300 people.
Overall, Australia’s population growth rate rose from a 10-year low of 1.36 per cent to 1.38 per cent.
Australia’s population grew by just 71,300 people over the December quarter – the weakest quarterly result in 41⁄2-years.
A total of 177,000 people migrated to Australia over year to December, well down on the 315,700 peak migrants in the year to December 2008.
There were 305,300 babies born in the past year, just shy of the record 312,200 births in the year to December 2012.
Over the past year population growth was the strongest in Victoria (1.87 per cent – the fastest growth in 6 years), followed by NSW (1.40 per cent), the ACT (1.36 per cent), Queensland (1.26 per cent), Western Australia (1.20 per cent – weakest in almost 13 years), South Australia (0.66 per cent –weakest in 11 years), Tasmania (0.41 per cent) and the Northern Territory (0.35 per cent).
Population growth is above decade averages in NSW (7 per cent) and Victoria (5.6 per cent).
<a href="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.18.45%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/24/Screen%20Shot%202016-06-24%20at%2010.18.45%20AM.png" alt="">
What is the importance of the report?
Demographic Statistics are issued by the Bureau of Statistics each quarter. The figures include estimates of births, deaths, in-bound and out-bound migration movements and estimates of population change by State.
The Australian Bureau of Statistics (ABS) provides detailed labour market figures one week after releasing ‘top level’ statistics of employment &amp; unemployment levels across states and territories. The detailed data is useful in identifying broader underlying trends and instructive about the health of the economy. 
What are the implications for interest rates and investors?
The latest data has few implications for interest rate settings. But if population growth remains soft, the Reserve Bank may need to make further adjustments to economic growth assumptions.
CommSec expects the Reserve Bank to cut interest rates again in August. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.
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Baby boom; Healthcare leads hiring: CommSec's Savanth Sebastian

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Bank Australia has been named as the Canstar Customer Owned Bank of the Year.
Canstar evaluated the product offerings of over 50 customer owned banks in Australia.
Mitchell Watson, Canstar group manager, research, said Bank Australia not only offered outstanding value products within the lending space, but also offered its customers value for money when it comes to its savings and transaction accounts.
They researched 266 deposit accounts, 1,211 home loans, 63 credit cards and 200 personal loans.
Damien Walsh, Bank Australia’s managing director said the award was an endorsement of the organisation’s unique mutual prosperity proposition – offering great value to the customer while also operating in an ethical and socially responsible manner.
 
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Bank Australia named Canstar Customer Owned Bank of the Year

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A report by SQM Research on Labor's negative gearing policy states dwelling prices will fall and sales turnover and stamp duty revenue will dip should the changes be legislated.
House prices could fall as much as 15 per cent during the four years it will take for the market to absorb the Labor Party's planned negative gearing changes in the worst-case scenario.
The average decline was suggested as around 4 per cent, according to SQM.
Renters would be shielded for the next few years from higher monthly rents, SQM Research managing director Louis Christopher said.
The report, titled Labor's Negative Gearing Policy - A Market Viewpoint' suggested average acquisition yields will rise up to 5.5 percent.
SQM Research managing director Louis Christopher said there will be a market impact if Labor’s negative gearing policy is legislated, and given the forecast of initial negligible rental growth suggests a correction in the housing market of -3 percent to +1 percent in FY2018, -8 percent to -3 percent in FY2019 and -4 percent to -2 percent in FY2020.
"The positive end of the range takes into account a response rate cut of 50 basis points by the RBA. The negative end of the range assumes no rate cuts in response," he said.
"The total adjustment in the housing market is forecasted to last between two to four years with most of the adjustment phase occurring within three years. Thereafter the market would likely potentially return back to equilibrium, having ‘priced-in’ the loss of the tax concession.
"Our analysis suggests the market impact would last by around three years with sales falling significantly in year one and a correction to take affect with dwelling prices falling the most in the second year. We think there would be a possible response to this event with the RBA cutting rates, thereby mitigating some of the potential price falls. We don’t think the market will crash per say, but it will be felt by the economy. We then expect the market to return to equilibrium from year three.
"We strongly encourage Labor to consider some of the investor issues, particularly surrounding the distortion their policy may create on pricing of off-the-plan developments and the likely losses investors in those properties would face come resale time to those who won’t have the tax concession.
"While we take the view that negative gearing reform is a good thing, such reform should be done as part of a wider property tax reform that should include a broad based land tax and the elimination of stamp duties. Such reform should have a phase in period of up to three years. Doing so would reduce the risks of a significant downturn which would likely have wider ramifications on the economy.”
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Labor's negative gearing plan to trigger price fall: SQM

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GUEST OBSERVER
The Westpac–Melbourne Institute Index of Consumer Sentiment dipped 1 percent in June to 102.2 from 103.2 in May.
Coming after an 8.5 percent surge in May, the small decline in June mostly represents a consolidation at improved levels.
Last month’s surprise rate cut from the RBA was the main catalyst behind May’s rally and although confidence has slipped back a touch in June this is a fairly common pattern following an interest rate driven bounce. At 102.2 the Index is still in slightly ‘positive’ territory overall – recall that readings above 100 indicate optimists outnumber pessimists.
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<a href="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.25.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.25.11%20PM.png" alt="">
Responses to additional questions on ‘news recall’ point to a somewhat calmer backdrop compared to March although the majority of consumers still assessed news as being unfavourable. The highest recall levels were for news on ‘economic conditions’ (27.8 percent) and ‘Budget &amp; tax’ (25 percent) but both were notably lower than in previous quarters. That is despite the May Budget and campaigning in the lead up to next month’s Federal election.
News on ‘international conditions’ was also much less prominent with the 10 percent level of recall on this item the lowest read in over a decade. Unsurprisingly, there was higher recall for news on ‘interest rates’ (16.5 percent) with the news on this topic viewed less negatively than in the previous four quarters.
Responses to additional questions on the ‘wisest place for savings’ showed a slightly less risk averse tone but attitudes still appear to be more conservative than seen throughout 2015. The proportion of consumers nominating ‘pay down debt’ fell from 24.4 percent in March to 20 percent in June.
This compares to an average reading of 17 percent in 2015. Consumers continue to heavily favour ‘safe’ options as well, with the proportion nominating bank deposits rising from 27.4 percent in March to 29.5 percent in June. That contrasts with continued lower readings for the proportion nominating real estate (15.8 percent in June vs 14.7 percent in March and average 25.4 percent in 2015) and shares (8.0 percent in June vs 7.6 percent in March and an average of 8.9 percent in 2015).
Consumers’ assessments of labour market conditions also consolidated on recent improvements. The Westpac Melbourne Institute Index of Unemployment Expectations declined 0.1 percent from 136.3 in May to 136.2 in June. This Index measures respondents’ assessments of the outlook for the unemployment rate so lower reads indicate improved confidence in the employment outlook. The Index has fallen 7.5 percent over the last three months and is now down 10.9 percent on levels a year ago but is still 4.9 percent above its long run average – assessments have shown a steady improvement but are still more negative than usual.
The component detail behind the headline sentiment index showed firmer reads on ‘family finances’ but a softening in expectations for the economy. Most notably, the sub-index tracking respondents’ assessments of ‘family finances compared to a year ago’ – a component the RBA has emphasised as an indicator of demand – increased 4.3 percent. The sub-indexes tracking the one and five year outlook declined 3.8 percent and 5.2 percent respectively, with falls following particularly strong gains in May, of 13.2 percent and 14.8 percent respectively. The ‘time to buy a major household item’ sub-index was unchanged.
Consumer views on housing also consolidated in June. The ‘time to buy a dwelling’ index declined 2.7 percent but the retracement followed a strong 12.1 percent surge in May. Price expectations firmed in the month with the Westpac Melbourne Institute Index of House Price Expectations up 3.6 percent to the highest level since September 2015. Both buyer sentiment and price expectations are still well below the readings seen a year ago but have shown a clear firming from the weak levels in early 2016, the RBA’s May rate cut clearly a supporting factor.
The Reserve Bank Board next meets on July 5. A move at that meeting is highly unlikely. The key considerations for the Bank are around the outlook for inflation. On its current forecasts the RBA does not expect inflation to return to the bottom of the band until 2017, and that is on the assumption of a further rate cut given that the Bank’s forecasts are based on ‘market pricing’ for rates.
The most important and immediate information about whether the RBA’s May assessment is correct will come from the June quarter inflation report which prints on July 27, after the July Board meeting but ahead of the August 2 meeting. It is our assessment that the information in this report will confirm to the Board that another cut is indeed necessary.
 
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<img src="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.29.31%20PM.png" alt="">
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Consumer sentiment consolidates after post-rate cut bounce: Bill Evans

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

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GUEST OBSERVER
Housing finance approvals continue to point to subdued conditions in April with a further softening in investor activity.
The headline figure – the number of owner occupier finance approvals – posted a 1.7 percent rise, more or less in line with expectations (market +2.5 percent, Westpac 2 percent).
The detail was a touch softer including additional data on the value of investor loans.
Ex refinance, the number of new owner occupier loans was up just 1.1 percent, only reversing part of March’s 1.5 percent decline. Overall, the monthly moves are slow and suggest owner occupier demand is drifting around rather than strengthening or weakening.
Within the owner occupier segment, the number of loans of housing-related loans posted a solid rise but are still down significantly on a year ago (+4 percent mth, –5.9 percent yr on a combined basis).
By state, gains were a bit firmer in Vic and Qld but softer in the other main states.
The value of investor loans fell 5 percent to be down over 20 percent yr.
Notably, the weakness in the investor segment outweighed the gain in owner-occupiers with the total value of loans ex refi down 3.7 percent mth, 9.2 percent yr.
Overall, the numbers suggest conditions remained soft in April ahead of the RBA’s May rate cut.
The Bank’s moves should draw more buyers into the market although that will take a few months to become apparent in finance approvals and may continue to be offset by weak investor activity. Details  Owner–occupiers (no.)   1.7%mth, 4.6%yr          
– ex-financing (no.)        1.1%mth, 0.7%yr          
Construction of dwellings (no.)               4.4%mth, –5.6%yr        
Purchase of newly built dwellings (no.)   3.3%mth, –6.7%yr        
Value of loans:             
Owner-occupiers ($bn)   0.1%mth, 7.8%yr          
Investors ($bn)              –5%mth, –20.8%yr       
Total ($bn)                    –1.8%mth, –4.4%yr      
Total ex refi ($bn)          –3.7%mth, –9.2%yr                      
 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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