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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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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CUA has reported a profit of $48 million for 2014-15.
Its profit from its banking business rose 10.7% to $48.79 million, while new loans grew by almost 55%.
CEO Rob Goudswaard says the credit union is considering making arrangements with peer-to-peer lenders.
CUA, the country's biggest credit union, said its focus was improving the net interest margin, which has fallen from more than 2% to 1.9%.
Rob Goudswaard reported new loan growth will not be as strong in 2016 as it must peg back growth in its investor loans, which is at 16%, above the banking regulator's 10% growth cap.
CUA's chief market is owner occupier loans, which makes up 80% of its mortgage book. 
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jchancellor-FAypfDUnLy

CUA to peg back investor loans under APRA crackdown

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ME Bank will offer $1,250 cashback to customers who apply for new owner-occupier home loans greater than $400,000.
The offer will apply to all owner occupiers who apply from September 8 to October 2 this year and settle before the 31 December 2015. 
Lino Pelaccia, ME’s general manager of broker sales, says the early spring offer was not available for existing applications, internal refinances or top ups of existing ME home loans.
For more information, click <a href="https://mebank.com.au/?src=WEB_HLSEM5_06_15&amp;gclid=CPD_pebD6McCFZcnvQod3VIFjA" target="_blank">here</a>.
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ME Bank with $1,250 cashback home loan offer for spring 2015

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Mortgage broker AFG has announced it has secured a new white label agreement with Macquarie Bank.
AFG managing director Brett McKeon said the agreement will see a new product range, AFG home loans ICON, added to AFG’s existing white label offering.
ICON will complement AFG’s existing product range with features such as a global limit facility, a self managed super fund product and a family guarantee offering.
 Mr McKeon said the addition of the white label product range is part of a key growth strategy for the company.
"We will continue to work with AFG brokers and lenders to provide mortgage products tailored to suit their clients." 
For more information on AFG, <a href="https://www.afgonline.com.au" target="_blank">click here</a>.
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j.ballantyne1990-6AQqhLzZaK

AFG expands white label suite‏

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Demand for fixed rate home loans fell to its lowest level in almost three years, new research has revealed.
According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 17.41% of all loans written throughout the month of August – down 1.05% from 18.46% the month prior.
Mortgage Choice chief executive officer John Flavell said the drop in fixed rate demand was surprising given the current volatility of the home loan market.
“Generally speaking, when the market is volatile and lenders are moving their rates – as they are doing now – fixed rate demand increases, as borrowers look for security and consistency around their mortgage repayments,” he said.
“In recent weeks, many of Australia’s lenders have increased their interest rates across their suite of investment products. Despite this, more borrowers are choosing variable rate home loans over fixed rate mortgages.”
Mr Flavell said the last time fixed rate demand was this low was back in January 2013.
“It has been 31 months - or almost three years – since fixed rate demand was this low. Across Australia, fixed rate demand was lowest in Victoria, with this type of product accounting for just 11.66% of all loans written throughout August,” he said.
“Western Australia and South Australia weren’t far behind, with fixed rates accounting for 14.16% and 14.59% of all loans written in both states respectively." 
Of the variable rate loans on offer, ongoing discount products once again proved the most popular with borrowers, with this type of product making up 48.38% of all loans written in August.
“With rates sitting at historically low levels, it is fair to say that regardless of whether a borrower chooses a fixed rate or variable rate home loan, they are going to secure a competitive rate,” Mr Flavell said.
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Fixed rate demand surprise fall to new low: Mortgage Choice

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Banks customers are changing their investor home loan to an owner-occupied loan, after recent interest rate rises.
Many borrowers have been living in properties that they previously rented to tenants.
Their bank had not been aware they are now owner-occupiers.
For the first time since the late 1990s, banks are now charging housing investors higher interest rates than owner-occupiers, part of their response to APRA's concerns to quell the housing market overheating.
Westpac and ANZ Bank say a growing number of these borrowers are now contacting them to prove they are in fact owner-occupiers.
Westpac confirmed to Fairfax Media customers had contacted it to change their loan classification from housing investor to owner-occupied since it announced it would raise interest rates for investors by 0.27 percentage points in July. 
ANZ Bank also confirmed the trend.
National Australia Bank has not had the same trend, as its rate rise was for interest-only customers rather than investors. 
But an NAB spokesman confirmed some customers had switched into principal and interest loans. 
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Trickle starts swapping from investor to home loan to lower interest rates

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GUEST OBSERVER
The Reserve Bank of Australia (RBA) is rapidly losing relevance to mortgage holders amid a myriad of changes to the nation's home loan landscape to tackle concerns about investor lending.
While the RBA maintains its cash rate at a record low of 2.0% – where it has been since May this year - tens of thousands of borrowers have already been hit with increases to their mortgage rates.
The decision of many lenders to raise interest rates for investment and interest only loans as well as revised borrowing conditions means the RBA's rate deliberations have become almost irrelevant for some borrowers.
While there is some competition in the market for owner-occupied loans at the moment due to the restrictions on investor loans, this pricing will be short lived with the pressure on the major banks to meet Australian Prudential Regulation Authority (APRA) measures by June next year. We will likely see rates increase for owner-occupied in the future.
The actions of the banks to increase rates in response to industry and regulatory desires to tackle the growth in investor lending due to concerns about booming Sydney and Melbourne property prices has changed the lending landscape.
Despite the RBA keeping its cash rate on hold, thousands of borrowers have been notified already by their lender that their interest rate will go up by as much as 49 basis points.
In the history of home loans it has never been more confusing for borrowers, who now need to be better informed than ever before.
Not only are rates for investors and people on interest only loans being targeted, there is a great variation now for all those looking to borrow money for investment purposes. Any investor who has purchased should revisit their approval as lending conditions have changed dramatically.
There have also been changes to loan servicing calculations, Loan to Value Ratio (LVR) requirements as well as the rental income needed to help service a loan.
John Kolenda is managing director of 1300HomeLoan and can be contacted <a href="https://www.1300homeloan.com.au" target="_blank">here</a>.
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RBA decisions losing relevance: John Kolenda

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The Greater Building Society has cut 0.55% from their new owner occupier variable basic home loan and has announced it will waive establishment, settlement and title insurance fees on all of its basic and packaged home loans.   
The Greater has cut 0.55% off the rate for new owner occupier variable basic home loans worth $150,000 or more that have a loan to valuation ratio (LVR) of less than 80 per cent. This takes the rate for that loan to 4.09% (comparison rate 4.09%), the lowest it has ever been. 
It is also offering 0.2% off fixed Great Rate home loans and fixed and variable Ultimate (packaged) home loans of more than $150,000 with an LVR of less than 80% for both owner occupiers and investors. 
Chief executive officer Scott Morgan said when you consider the all important comparison rate (which takes into account interest rates plus key fees and charges) the discounted variable Great Rate Home Loan is the leading rate of The Greater’s main competitors and 0.83% lower than NAB’s equivalent rate.  
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top">
Lowest Owner Occupied Variable Loan with LVR &lt;80%
</td>
<td valign="top">
Interest Rate (%)
</td>
<td valign="top">
Comparison Rate* (%)
</td>
</tr>
<tr>
<td valign="top">
Greater
</td>
<td valign="top">
4.09
</td>
<td valign="top">
4.09
</td>
</tr>
<tr>
<td valign="top">
NAB
</td>
<td valign="top">
4.53
</td>
<td valign="top">
4.92
</td>
</tr>
<tr>
<td valign="top">
ANZ
</td>
<td valign="top">
4.48
</td>
<td valign="top">
4.89
</td>
</tr>
<tr>
<td valign="top">
Westpac
</td>
<td valign="top">
4.48
</td>
<td valign="top">
4.86
</td>
</tr>
<tr>
<td valign="top">
Commonwealth Bank
</td>
<td valign="top">
4.19
</td>
<td valign="top">
4.79
</td>
</tr>
<tr>
<td valign="top">
Newcastle Permanent
</td>
<td valign="top">
4.09
</td>
<td valign="top">
4.45
</td>
</tr>
<tr>
<td valign="top">
IMB
</td>
<td valign="top">
4.09
</td>
<td valign="top">
4.45
</td>
</tr>
<tr>
<td valign="top">
CUA
</td>
<td valign="top">
4.13
</td>
<td valign="top">
4.19
</td>
</tr>
<tr>
<td valign="top">
Heritage
</td>
<td valign="top">
4.14
</td>
<td valign="top">
4.19
</td>
</tr>
</tbody></table>
* Comparison rate is based on $150,000 over 25 years. 
 
For more information, <a href="https://www.greater.com.au" target="_blank">click here</a>.
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mick.cee-iDmgDDAmu8

Greater cuts interest rates, fees from some home loans

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GUEST OBSERVER
All Australians should be able to retire with dignity and decent living standards, states the recently released superannuation report of the Committee for Economic Development of Australia (CEDA).
CEDA’s report is commendable. And although I agree with most of its recommendations, including what the purpose of super should be, how retirement income products dealing with longevity risk should be developed and how super tax laws should be made more equitable, I have one serious misgiving: I do not believe active employees should be able to use their super funds to invest in owner-occupied housing.
The American 401(k) system (also a defined contribution model like Australian super) provides a cautionary tale on the damage caused by what’s known as pre-retirement leakage. Unlike Australia, it is fairly easy for US workers to access their 401(k) retirement accounts during active employment. Even prior to preservation age, which is 59<a href="https://www.propertyobserver.com.au/"></a>½ in the US, individuals are able to use their workplace retirement accounts for a number of purposes, both with and without tax consequences.
For instance, the US tax code allows individuals under specified circumstances to take loans against the value of their retirement funds without tax penalty. Although such funds are required to be secured and paid back like any other commercial loan, studies show many employees are never able to restore the money to their 401(k) accounts. Not only does this lead to diminished pension pots, it also means there will be less money upon which interest or investment returns can build on in the long-term.
The US 401(k) system also permits employees to take hardship distributions for a number of reasons, including purchasing of a first home, university education and medical expenses. In these circumstances, not only does the individual not face any tax penalties for the withdrawal (except for having to pay ordinary income tax), they are also not required to pay back the money to their account.
Finally, employees can take money out of their 401(k) accounts if they “really” want. What I mean is, absent even an authorised loan or hardship distribution, employees before preservation age can withdraw funds from their retirement accounts. We call this “expensive money” because both a 10% excise tax and 20% employer withholding of funds apply. In the end, these employees receive 70 cents in the dollar for withdrawing money prematurely from their retirement account.
Such leakage in the US causes a significant erosion of assets in retirement - approximately 1.5% of retirement plan assets “leak” out every year. This can potentially lead to a reduction in total retirement assets of 20% to 25% over an employee’s working years, according to experts.
<h2>Remember the role of super</h2>
I do not disagree with the CEDA report that housing makes a critical contribution to sustaining living standards and helping to address elderly poverty. Needless to say, there should be a multipronged federal government response to the spectre of increasing poverty in old age because of the lack of home ownership. Many useful suggestions are made in the CEDA report in this regard.
But using super, even if only for first-time home buyers, should not be the answer. Indeed, CEDA agrees with much of the recent Financial System Inquiry report (the Murray report), which concludes that super legislation should state explicitly and clearly that its purpose is to provide retirement income.
While increasing home ownership for younger workers is an admirable policy prescription, it is not consistent with the retirement income focus of super. Allowing workers to use their super funds to buy homes means there will be much less money in the pension pot to grow over time to provide the necessary retirement income.
And the harm is ongoing. Making such a change would lead to a further constrained supply of housing, meaning more money chasing the increasingly limited stock of property, tending to drive home prices up even further.
Of course, when, not if, the housing market crashes, much of the super savings tied into such property will also be lost. This problem stems from a lack of diversification in one’s retirement portfolio through an over-investment in the family home. The consequent lack of investment diversification among asset classes means super is less likely to be able to survive future shocks to the Australian economic system.
The lesson from the United States is clear: pre-retirement leakage from super should be permitted only under the most exceptional of circumstances. Even for the very best of reasons, like first-time home ownership, Canberra should prevent super fund leakage during active employment to ensure the primary objective of super: retirement income adequacy.
Paul Secunda is senior Fulbright Scholar in Law (Labour and Super) at University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/paul-secunda-187662" target="_blank">here.</a>
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Tapping super not the answer to home ownership decline

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GUEST OBSERVER
The cash rate has been left at a record low of 2% for a fourth month. The Reserve Bank has left the outlook statement unchanged – almost word-for-word.
What does it all mean?
The last thing that Aussies want at the moment is volatility. So it is encouraging to see that official interest rates have been left unchanged for another month. And it is useful to reflect on the strong position that the Reserve Bank is in. Rates could easily be cut further, if there was the need. That is more than the central banks of most advanced economies can claim. 
The good news is that there is no need for the Reserve Bank to supply more stimulus to the economy. The cash rate is at record lows; market-determined interest rates aren’t far off record lows; the Aussie dollar is near 5-year lows; and the Government is providing stimulus via lower small business tax rate and asset write-down provisions.
Also consider the fact that inflation is at the low end of the 2-3% Reserve Bank target band. The economy continues to record modest, but not great, economic growth and unemployment is largely unchanged on a year ago. The lift in business investment expectations, lift in business spending and record levels for home building approvals highlights the momentum of the economy.
Was there the need to say something new or different? No. The only interesting point is that the Reserve Bank notes “stronger US growth” and also notes that the Federal Reserve is likely to increase rates “over the period ahead” rather than “later this year.” The Reserve Bank appears to be betting on a September rate hike.
On the Australian dollar there has been no change in the Reserve Bank view – seemingly Board members are “happy” with an Aussie near US71-72 cents: “The Australian dollar is adjusting to the significant declines in key commodity prices.”
On the economy, the Reserve Bank continues to mull whether the speed limit of the economy has declined: “In Australia, most of the available information suggests that moderate expansion in the economy continues. While growth has been somewhat below longer-term averages for some time, it has been accompanied with somewhat stronger growth of employment and a steady rate of unemployment over the past year.”
On home prices, the Reserve Bank continues to monitor developments closely: “Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market.”
Perspectives on interest rates <ul>
<li>The previous rate cut was in May 2015 (25 basis points), taking the cash rate to a record low of 2.00%.</li>
<li>There have been 10 rate cuts since November 2011.</li>
<li>The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00% to 4.75%.</li>
</ul>
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<div class="column">What are the implications of today’s decision?</div>
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We remain on the belief that the Reserve Bank is reluctant to cut rates again, with the central bank questioning whether another rate cut would actually give the economy a boost or whether it would be counter-productive. If the Reserve Bank was to cut interest rates again – and it wasn’t in response to a major negative event – then it may very well be the case that many Australians would become less, rather than more, confident, questioning just how bad the economy really was if further rate cuts are deemed necessary.
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 Interest rates may not fall again this cycle. However, having said this, variable rates are unlikely to rise until 2016. The main area to watch is fixed interest rates. If the US Federal Reserve starts its rate hiking cycle in just over a fortnight, the risk is that fixed rates will start to lift across the globe.
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<div class="column">Investors still have plenty of attractive opportunities across financial markets to generate returns. But they need to do their homework. Term deposit rates remain low, but online cash accounts offer greater attraction. And many blue-chip shares are offering dividend yields including NAB (6.31%), Westpac (5.95%), BHP Billiton (6.61%) and Rio Tinto (5.92%). </div>
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. </div>
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cjames-5S2v74qSNK

Interest rates locked in holding pattern: Craig James

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GEUST OBSERVER
As expected the Reserve Bank Board decided to leave the cash rate unchanged at 2%.
In the Governor’s statement the recent equity market volatility and ongoing weakness in China was noted. However, he chose to nominate offsetting effects in both cases. For China, he noted “stronger US growth” and for the equity markets he noted that “other financial markets have been relatively stable”. If that was a deliberate strategy then we can interpret it as indicating that the Bank is reasonably comfortable with these recent developments.
However it appears that the view on China may have softened somewhat relative to last month given that the minutes to the August meeting noted that “the downside risks to the outlook for Chinese growth identified over the past year had receded somewhat”.
At the August meeting the AUD was trading around USD 0.7275. It has subsequently fallen to USD 0.715. That is despite a modest increase in Westpac’s broad commodity index of 1.5%. Not surprisingly this welcome result encouraged the Governor to repeat the AUD commentary that was used in August: “the Australian dollar is adjusting to the significant declines in key commodity prices”.
Whereas in August the Governor expected the Federal Reserve to start increasing its policy rate “later this year”, he now expects the increase “over the period ahead”. This moderation in the Fed view is not significant for policy with the AUD down at these levels. If for instance the AUD had lifted sharply since the August meeting then a less confident outlook for Fed policy would have been significant for the RBA’s own policy.
In the August Statement on Monetary Policy the Bank revised its unemployment forecast from steadily rising to 6.5% to flattening out around current levels of 6%. The July jobs report printed an unemployment rate of 6.3% but we expect that has not been enough for the Bank to change its view on unemployment. In that regard the commentary used in the August Governor’s statement – “somewhat stronger growth in employment and a steady rate of unemployment over the past year” – was repeated. I expect it would be necessary but not sufficient for the Bank to cut rates to see an  upward revision to that unemployment forecast.
There is no change in the commentary around credit growth (“moderate”) the housing market (“prices continue to rise strongly in Sydney”) and the growth outlook (moderate expansion with “a degree of spare capacity”) and the final paragraph of the statement is unchanged from August with the final line: “Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.”
The outlook
Despite the market pricing in a 100% probability of a rate cut by year’s end, Westpac continues to expect that rates will remain on hold over the course of 2015 and 2016. Risks around that view are clearly to the downside with the labour market; momentum in domestic demand; the global economy and the Australian dollar remaining key swing factors.
From our perspective we do not think that the high degree of inertia which the Bank has towards further rate cuts will be tested.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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