Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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

<html><body>
EXPERT OBSERVER
Ask a homeowner how long it took them to fill out their home loan or refinancing applications and, chances are, you’ll get an exasperated “12 hours” as a response – even when the reality is more like two hours.      
The way Australian consumers interact with the property market is shifting, with savvy consumers looking for new ways to get on and climb up the property ladder. But one thing that never seems to change is the ‘grudge’ element of the application process, or the anxiety that a home loan can bestow on a household.
Navigating the shifting lending landscape
Housing affordability is a top concern for most Australians, second only to cost of living and health and ageing. Three quarters (75%) of consumers say home ownership feels more difficult than 10 years ago, and 59% expect it to be even more difficult in another 10 years.
This concern is understandable in the face of harsher scrutiny of financial liabilities, more stringent income and expenditure requirements and stricter credit criteria from banks and lenders. And the anxiety of buying or refinancing doesn’t end when homeowners get their loan approved – consumers are bombarded everyday with so many offers, deals and financial life hacks that it’s almost impossible for them to be sure they’re on the best rate.
As the dreams of owning, renovating or upsizing a home become more challenging, consumers are looking to looking for alternative financial partners, who are keeping in step with the shifting lending landscape and offering innovative new products, more flexibility and competitive rates. 
These partners are increasingly non-bank lenders (online lenders, neobanks and credit unions) with better fees, lower rates and a more personalised service compared to established mortgage lenders, who are failing to keep up with changing consumer needs.
 How are customers forging the future of home ownership?
The reality is, everyday families have always been underserviced – becauseof their geographical location, not having the levels of wealth that demand personal attention, or simply because their broker or lender doesn’t contact them regularly enough. Unfortunately for this group of consumers, while they’ve been largely ignored by their banks and lenders, they’ve also been wasting a collective $4bn a year on unnecessary home loan interest payments.
The only way to level the playing field is for the consumer to take back control. Consumers who have stayed on the same loan for years are being hardest hit by the ‘loyalty tax’, while new or more proactive customers are offered more attractive loans. This group would greatly benefit from refinancing – but most people don’t have the time, knowledge or energy to monitor the markets every day to make sure they’re still getting the best deal.
This is where technology comes into play. The advent of fintech has not only started levelling the playing field, it’s also made homeowners more aware of what they’re missing out on. Slowly but surely, uno is seeing consumers trying to take a more active role, refinancing more often and trying to counteract their financial anxiety.
This is a huge task for consumers to take on alone. Luckily, they don’t have to. uno’s loanScore tool, for example, gives consumers free access to the same kind of service a personal banker would provide – assessing their loans in real time, letting them know where they stand and making it easier to act when they’re ready. Essentially removing the anxiety of not knowing whether you’re on the right deal, for the entire life of the loan.
For established players, ignoring the changing attitudes and behaviours of consumers won’t remain an option for long. For new entrants, opportunities abound.  
Anthony Justice is the CEO of <a href="https://loanscore.unohomeloans.com.au/" target="_blank">uno Home Loans</a>.
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jrobinson-rf4aSBido9

Levelling the home loan playing field: Uno Home Loans

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The minutes of the November monetary policy meeting of the Reserve Bank Board give us no significant reason to change our view that the next rate cut will occur in February.
While some forecasters have been promoting the idea of a move in December, these minutes provide the flavour of a Board that is in no hurry to make the next cut.
The minutes conclude that “the Board would continue to monitor developments”. It also referred to “having already delivered a substantial monetary stimulus in recent months, there was a case to wait and assess the effects of this stimulus, especially given the long and variable lags”.
Nevertheless, the minutes do not want to leave the reader in any doubt that the Board continues to have a clear easing bias.
The minutes concluded that the Board “was prepared to ease monetary policy further if needed” and also noted that “members reviewed the case for a further reduction at the present meeting”.
The second important issue around the policy outlook is the “effective lower bound” (ELB) of the cash rate.
Westpac has argued since July that the ELB will prove to be 0.50% and will be reached in February 2020. One factor that has been important to our thinking has been the response of the Westpac-MI Consumer Sentiment index to the rate cuts that began in June 2019.
The index has been on a clear downward trend since and the Board has recognised that by noting that “a further reduction in interest rates could have a different effect on confidence than in the past”. Put another way, the Board “recognised the negative effects of lower interest rates on savers and confidence”.
On the other hand, the Board was informed that it appears that Banks still have adequate scope to pass on future rate cuts. The minutes noted that “while close to a quarter of deposits were estimated to be earning interest at rates between 0-50bps, most deposits earned interest at rates over 1%”.
The Banks’ response to the cumulative 75bp reduction in the cash rate was to lower interest on at-call retail deposits by an average of 60-70bps.
As noted above, this reduction in deposit rates is affecting the confidence of savers, whereas the data also showed that borrowers had been repaying existing loans at a faster pace. This observation puts one of the most important channels of monetary policy, a boost to spending from the increased cash flows of borrowers, at some risk.
In our preview to these minutes, we were hopeful that the minutes might cast some light on the sentence in the November Statement on Monetary Policy (SMP), “the Board was mindful that rates were already very low, and that each further cut brings closer the point at which other policy options might come into play”.
The issue here is whether these “other policy options” refer to unconventional monetary policy, fiscal policy, or both. It is most likely “both”. So more details on the unconventional side would have been helpful. The Governor is speaking on “Unconventional Monetary Policy: Some Lessons from Overseas” on November 26.
No doubt, he will cast some light on his thinking in that speech. It is also the last day before the blackout for the December RBA Board meeting.
If he wanted to signal to the market that the very disappointing labour force and wages reports from last week, which printed after the November Board meeting, had swayed his thinking towards a December move, that speech would be the time. However, we would be very surprised, given the earlier discussion about these minutes, to see such a move from the Governor.
The November Board meeting also discusses the Staff’s revised growth outlook. As we noted in the discussion of the SMP, there were very few changes in the RBA’s forecasts. The RBA continues to forecast trend growth (2.8%) in 2020, and above-trend growth (3.1%) in 2021.
Westpac is forecasting 2.4% growth in 2020, with the major differences being around the outlook for business investment and dwelling construction. In fact, the minutes highlight that the RBA remains uncertain about the pace of recovery in the dwelling cycle with one of the key factors being the impact of rising prices in the established market on new construction.
Commentary around the international outlook continues to point to risks being tilted to the downside. However, a key reason justifying the decision not to move in November was around the “decline in pessimism” which had been signalled by global financial markets.
A further reason to delay any more cuts is to await outcomes for the global economy, with the developments around the US-China trade conflict being front of mind.
Conclusion
The case for a December rate cut is heavily downplayed in these minutes, although, as discussed, the meeting occurred before the disappointing wages and employment prints from last week.
We certainly do not believe that those prints will be sufficient to move the RBA away from its current “monitoring” approach and so confirm our forecast that the next cut will occur in February 2020.
The discussion around the impact of low rates on confidence is clearly very significant and gives some support to our view that 0.5% will be the effective lower bound of the cash rate in this cycle. 
<a href="https://www.rba.gov.au/monetary-policy/rba-board-minutes/2019/2019-11-05" target="_blank">Read the full RBA Minutes</a>.
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BILL EVANS is Chief Economist for Westpac
 
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bevans-rYk9SxEa4r

RBA minutes signal that the Board is in "monitoring" mode: Bill Evans

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Today we have run with three charts - Australian dwelling completions, commencements and approvals. The point of this is to illustrate that the current rate cuts are not going to be a job creator for the Australian housing construction industry anytime soon. Naturally it may help other parts of the economy. But not housing construction. To be clear the process of building a property starts at the approval stage. Once approved, building construction commencements normally occur between 6 to 18 months after approvals. And then finally, completions normally occur 18 months to 3 years after approvals.
 
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/d0a5d23c-7109-4a61-9e45-e2a75ad4aee2.png">
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/c2e4fa2e-a581-4020-941d-0f5835b9a3e2.png">
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/69a3110b-3f74-4a58-843a-93ff0600815e.png">
Dwelling completions are only peaking now and so there are a whole bunch of projects that are on the verge of completion. Normally once a project is completed, workers move onto the next project. But as we can see on the commencements chart, there are now less commencements than completions. And so there is less work available, meaning more job losses are coming. To make matters worse, building approvals are still tracking south and are considerably lower than commencements. This means even more housing construction job losses are on the way over the course of 2020 and likely, 2021. This will happen despite the interest rate cuts, tax cuts and easier lending standards. As the building approvals illustrate, there has been no response as yet in the form of higher demand for new housing. The real jobs creation phase, where there are labourers and contractors on the ground, naturally happens at the commencements phase and gets slowly wound down as the building gets closer to completion. So with the fall off in building approvals, housing construction is going to be a detraction to GDP for many months to come. This must be quite the concern for the RBA and for the Federal Government for that matter. As you may have guessed, housing construction is not an insignificant proportion of total employment. The RBA places it at just under 6%. The last time this occurred was back in 2011 to 2013. However the country still had the mining boom as a major job creator at that time. For now, mining investment seems to have bottomed out and will moderately pick up over the next 12 to 24 months, therefore taking some of the slack. But no one is expecting a massive uplift in mining. There is of course infrastructure and that may help to an extent. Apparently for FY20 some $13 billion dollars has been estimated to be spent on Infrastructure which should at least keep climbing through to 2023. By comparison, there was some $42 billion dollars’ worth of dwellings approved over the 12 months to September 2019. Infrastructure better help with the offset. And perhaps with mining added, it will. The RBA is forecasting the unemployment rate to fall to 5% by 2021. But no-one really knows for sure. Let’s hope they are right. Otherwise Australian unemployment is going to keep rising in 2020 and that won’t be good for anyone.
LOUIS CHRISTOPHER is the CEO of SQM Research.
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louischristopher-TWpYcZDLBK

Current rate cuts aren't going to be a job creator for housing construction: SQM's Louis Christopher

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Demand for housing credit by investors remained subdued, the RBA noted in their minutes for the November meeting where they left the official cash rate on hold at a record low 0.75 per cent.
"Despite the stronger-than-expected pick-up in established housing markets, there had been little evidence of a lift in the early stages of residential development activity, RBA Governor Philip Lowe suggested in the minutes.
He added that risks in the near term to growth from dwelling investment were tilted to the downside, although then went on to make mention of the decline in building approvals, down over 20 per cent over the year.
"Liaison with industry participants suggested that the recent improvement in housing market conditions had not yet translated into stronger sales for new housing," Lowe said.
He said that a larger-than-expected contraction in dwelling investment could delay the gradual improvement in GDP growth.
"Members noted that the recent strengthening in housing market conditions would support building activity in time.
"The lagged response to higher housing prices and a period of low building activity had raised the likelihood that dwelling investment would be stronger in the medium term than currently expected."
Lowe cited the increase in housing loan approvals, which had risen strongly since May, largely driven by owner-occupiers.
"Members noted that there was strong competition for borrowers of high credit quality," Lowe said, although added that despite the competition, the pace of growth in housing credit for owner-occupiers had picked up only slightly, while the stock of housing credit for investors had continued to decline a little.
<h1>Rebounding Markets</h1>
There were further mentions of the rebounding Sydney and Melbourne housing markets, with Brisbane now mentioned in the same breathe.
Lowe said conditions in Brisbane had "firmed", although noted housing conditions remained weak in Perth and Darwin.
"In Sydney and Melbourne, housing prices had been on an upward trajectory since June, the number of auctions had increased and auction clearance rates had been at relatively high levels.
<h1>Borrowing Rates</h1>
Lowe said a large share of the recent monetary policy easing had been passed through to mortgage rates, but cited the lack of movement from the banks following the October cut.
"Borrowing rates for households and businesses were at historic lows," Lowe said.
"After passing through most of the June and July cash rate cuts to standard variable mortgage rates (SVRs), financial institutions had passed through less of the October rate cut, bringing the total reduction in SVRs since June to around 60 basis points.
"Strong competition for high-quality borrowers had led to rates for new and refinanced loans being lower than for existing loans.
"In addition, borrowers were continuing to switch from interest-only loans to lower-rate principal-and-interest loans.
"This meant that average outstanding mortgage rates had declined by around 65 basis points since the middle of the year. This process was expected to continue."
 
 
 
 
 
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Demand for credit by property investors remains subdued: RBA November minutes

Brisbane housing market conditions firm as Sydney and Melbourne continue to strengthen: RBA November minutes

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EXPERT OBSERVER
The latest ABS data on new housing credit showed a sharp rise in the value of home loan commitments, driven by a surge in owner occupier lending as well as a smaller rise in investment lending.
The rise in the value of owner occupier housing finance commitments over the September quarter (+12.1%) was the fastest quarter-on-quarter gain since the September quarter of 2015 (13.7%), taking the value of new owner occupier home loan commitments 17.3% higher since bottoming out in May earlier this year.
Growth in investment lending hasn’t been quite as strong, however the value of investment loan commitments was up 6.0% over the September quarter, which was the fastest gain since the December quarter of 2016.
The value of investment loan commitments is now 8.4% higher than the May 2019 trough.
With owner occupier credit outpacing investment credit, investors now comprise the lowest portion of housing loan commitments since the ABS records commence in 2003, currently tracking at 24.8% of the value of new mortgage commitments.
In contrast, shortly after the first round of macro-prudential rules were introduced in December 2014, investors comprised 43% of national mortgage demand. The trends in housing credit are similar across the states, with the value of owner occupier loan commitments generally outpacing investors.
Click <a href="https://www.propertyobserver.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" alt="">
New South Wales The value of owner occupier loan commitments was up 12.3% over the September quarter, compared with a 3.3% rise in investment.
Although investment credit growth is slower, NSW has the largest concentration of investment activity across the states, with investors comprising 30.5% of mortgage demand based on value.
First home buyers have surged higher over the past couple of years, as stamp duty exemptions and lower housing values have encouraged first timers back into the market.
First home buyers have comprised more than 25% of owner occupier mortgage demand since March this year, more than double the proportion of first home buyers prior to the market peak.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%202.JPG" alt="">
Victoria The value of owner occupier home loan commitments was 11.3% higher over the September quarter, compared with a 10.6% lift in investment lending.
Non-first home buyers drove the quarterly gains, with the value of loans up 13.4%, compared with a 9.2% rise in first home buyer lending.
The value of investor loan commitments remains almost 9% below the level a year ago, however Victoria is showing the second largest concentration of investors (after NSW), comprising 25.2% of mortgage demand in September.
First home buyers have been holding above 30% of owner occupier mortgage demand since February this year.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%203.JPG" alt="">
Queensland Investors are driving the largest increases in the value of mortgage activity, with the value of investor loans up 12.5% over the September quarter, compared with a 8.4% lift in owner occupier lending.
Despite the larger rise in investment lending, investors comprise only 17.9% of mortgage demand across Queensland, the second lowest proportion across the states (after WA).
First home buyers showed a larger lift in the value of lending over the quarter, up 11.1% compared with a 8.4% increase in the value of non-first home buyer loans.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%204.JPG" alt="">
South Australia Non-first home buyers are driving mortgage demand across South Australia, with the value of mortgage commitments up 10.8% over the September quarter, compared with a relatively flat 0.8% lift in first home buyer lending and a 1.3% increase in investment lending.
First home buyers have seen a stronger result over the past year, with the value of loans up 9.4%.
The September data showed investors comprised 21.9% of mortgage demand, which was well below the decade average of 29.9%.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%205.JPG" alt="">
Western Australia Mortgage activity is finally showing an upwards trend across Western Australia, with the value of owner occupier lending up 15.8% over the September quarter, while the value of investor loans surged 24.1% higher.
The quarterly result was the strongest gain for owner occupier lending since 2009 and the surge in the value of investment loans was the highest since 2005.
Mortgage lending is rising from a very low base, especially across the investor segment, after a prolonged period of weak credit growth.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%206.JPG" alt="">
 Tasmania Mortgage lending was positive on an annual basis across each of the broad market segments, driven by a surge in investment lending over the quarter (+32.4%) and a less substantial 26.2% lift in the value of owner occupier loans.
Tasmania was the only state to record an annual lift in the value of mortgage commitments across each of the broad market segments.
 
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%207.JPG" alt="">
Northern Territory The value of mortgages was down over the quarter and over the year across each of the broad market segments.
Over the past year, investor mortgage commitments were down the most (-30.5%), with a large fall across the first home buyer segment as well (-29.7%).
With housing values around 31% below their peak across the NT, first home buyers are taking advantage of very healthy levels of housing affordability, showing the highest concentration of any State or Territory across the NT, comprising 38.2% of owner occupier demand based on the value of new commitments.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%208.JPG" alt="">
Australian Capital Territory The value of owner occupier mortgage commitments was up 20.7% over the September quarter, driven by a surge in first home buyer activity where the value of lending jumped 75% higher.
The value of mortgage lending across the larger non-first home buyer sector of the market was up 10.3% and investment lending was 9.5% higher over the quarter.
The rebound in new housing credit flows is running in parallel with increased buyer activity and rising residential property values.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%209.JPG" alt="">
According to CoreLogic’s Home Value Index, national dwelling values bottomed out in June this year, the same month that housing credit started to rise.
The improved credit flows have been supported by APRA’s decision to relax borrower serviceability rules, as well as the lowest mortgage rates since at least the 1950’s.
The flow of new credit is likely to be a key factor monitored by policy makers.
Any sign of a material rise in speculative buying activity, higher household debt or a slip in lending standards could be met by another round of macroprudential credit tightening, however at the moment, despite the recent surge in housing credit, investors remains underrepresented in the market and overall credit growth (based on the RBA credit aggregates) remains subdued, implying a strong focus on debt reduction from households.
The next round of APRA statistics providing an insight into key metrics covering riskier areas of lending such as the proportion of interest only loans and the proportion of high LVR lending is due out next month.
These statistics should provide some further guidance around any regulatory response that could impact on housing credit activity.
TIM LAWLESS is the CoreLogic head of research.
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tlawless-5VLUrbAk9s

New mortgage commitment values rising sharply: Tim Lawless

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EXPERT OBSERVER
We have pushed out our expected timing of the next cash rate cut by the RBA to February 2020, where we expect a further reduction of 25bps to a new low of 0.5%.
It is at this level of the cash rate where the RBA has previously stated it would outline a ‘package’ of unconventional policies if further monetary easing is required to support growth, full employment and the return of inflation to target.
The RBA Governor is speaking on “Unconventional Monetary Policy” on November 26th.
To be clear, we think that the RBA should actually provide a further interest rate cut next month with private sector growth remaining weak and little evidence to date that prior easing or the tax rebates has done enough to offset the weakness in the economy.
However, for now, the RBA appears to be in a holding pattern, while it assesses the impact of prior rate cuts and ‘the gentle turning point’.
We see an improvement in growth over time but not to a sufficiently strong rate of growth to prevent the unemployment rate beginning to rise.
At the same time, the Government does not seem to be inclined to provide material fiscal stimulus in the near term, which increases the need for the RBA to ease further (including a further rate cut and unconventional policy) should our forecast of a deteriorating labour market materialise.
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">We now expect the RBA to cut the cash rate by 25bps to 0.5% in February 2020 – and potentially announce a package of unconventional policy should there be a need to provide further stimulus to the economy going forward.</div>
<div class="column"> </div>
<div class="column">Previously we had pencilled in a cut for December (the fourth this year) – and still consider this the best course of action – but the RBA has signalled it is in ‘wait and see’ mode.</div>
<div class="column">
 Growth looks to have remained weak in Q3, with our expectation for quarterly growth now 0.3% (1.5% y/y) – a small slowing from the previous two quarters. This deterioration comes despite the support provided by tax cuts which look to have provided little offset to the weakness in consumption with retail sales declining in Q3 – though it is likely too early to see the impact of recent rate cuts.</div>
<div class="column"> </div>
<div class="column">In addition, NAB’s internal modelling suggests that the services component of consumption was also weak in Q3.</div>
<div class="column"> </div>
<div class="column">In the business sector, both business confidence and conditions have remained below average in the first month of Q4 – though encouragingly have not deteriorated further.</div>
<div class="column"> </div>
<div class="column">The forward-looking indicators suggest little significant signs of a turnaround.</div>
<div class="column">
 Further out we have broadly maintained the shape of our growth forecasts.</div>
<div class="column"> </div>
<div class="column">We expect growth of 1.6% this year, before a small improvement to 2.1% in 2020 and 2.4% in 2021. These below average rates of growth lead to a small rise in the unemployment rate.</div>
<div class="column"> </div>
<div class="column">Inflation is expected to remain weak and only reach the bottom of the target band by the end of our forecast horizon.</div>
<div class="column"> </div>
<div class="column">The key dynamics behind our assessment of the economy continue to be headwinds from a weak consumer and a significant downturn in housing construction.</div>
<div class="column"> </div>
<div class="column">We have also lowered our business investment forecasts a touch. These weak outcomes in private domestic demand continue to be partly offset by strong public sector spending and growth in exports – preventing a more troublesome slowing of growth. Our global outlook remains broadly unchanged.</div>
<div class="column"> </div>
<div class="column">While we think that fiscal policy could be used to effectively support the economy and the recent easing in monetary policy – this increasingly appears unlikely to occur in the required time frame.</div>
<div class="column"> </div>
<div class="column">We think the government should act to bring forward infrastructure investment (where constraints allow) and that an earlier introduction of planned tax cuts could usefully bolster household income growth and spending.</div>
<div class="column"> </div>
<div class="column">In addition, investment allowances to support and bring forward investment may help, as would lifting Newstart payment rates.</div>
<div class="column"> </div>
<div class="column">The risk of fiscal policy remaining on the sidelines for too long, increases the chance that the RBA will ease further than otherwise (including both further rate cuts and the use of QE) though both of the latter see longer lags in boosting growth.</div>
<div class="column"> </div>
<div class="column">As previously outlined we see the risk of a move to unconventional policy by mid-next year without material support from fiscal policy.</div>
<div class="column"> </div>
<div class="column">We think that initially the RBA could flag a package of options at around a 0.5% cash rate and would begin to implement these as rates are cut further in this scenario.</div>
<div class="column"> </div>
<div class="column">Initially, we think it is highly likely the RBA would shift to an explicit form of forward guidance and purchase government bonds.</div>
<div class="column"> </div>
<div class="column">Other unconventional measures could include a broader range of asset purchases and increasing liquidity in the short-term money market.</div>
<div class="column"> </div>
<div class="column">Long-dated repurchase agreements to banks are another option.</div>
<div class="column"> </div>
<div class="column">The choice of instruments and size of the package is likely to reflect both economic conditions and financial market circumstances at the time of implementation.</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
ALAN OSTER is the NAB Group Chief Economist
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j.ballantyne1990-6AQqhLzZaK

NAB pushes next rate cut out to February 2020: NAB's Alan Oster 

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The golden age of banks controlling the home loan market seems to be ending, with active home borrowers set to be the main beneficiaries.
The market share of the big four banks continues to fall.
According to research from UBS analyst Jonathan Mott mortgage origination via the big four’s branch networks has fallen from a peak of 48% in 2013 to presently around 37%.
ANZ’s branch network experienced the sharpest reduction.  
As a result of the shift, the major banks’ share of new home loans has dropped from 78% to 71% over the past six years.
Mott noted the majors still have 79% share of all outstanding mortgage credit outstanding, but that new lending competition was intensifying as customers migrate away from the major banks.
Reputational damage post the banking royal commission accelerated the trend along with repeated times of not fully passing through RBA rate cuts to its annoyed variable rate customers.
The Hoff, actor David Hasselhoff, was the unlikely influencer that helped turbo-boost the ANZ Bank's recent home loan activity.
The ANZ saw a 30% plus bounce in the home loan applications accompanying the recent two month campaign featuring the 1980s star of Knight Rider and Baywatch.
The cheesy ANZ advertising campaign also promised 300,000 bonus Qantas Points for a loan of $300,000 or more, which could comfortably take a family of four to Fiji return or a couple to New York.
The marketing campaign slogan was "a home loan offer so good you don't need a celebrity".
The two month campaign was perfectly time to capture the spurt in buying interest around the time of the May election.
The multi-media ANZ campaign ran from July until late August, attracting some 1.7 million views on YouTube.
There was certainly some negative social media suggesting The Hoff was a "has been". 
The Hoff, who proposed to his wife, Hayley Roberts at the top of the Harbour Bridge climb in 2012, was back in Sydney for just a day to do the filming earlier this year.
Helping turn the tide on its falling home loan applicants, the ANZ chief executive Shayne Elliott credited the campaign.
He noted the Hoff campaign had blown through its volume targets "every single day".
“We think it’s a signal to the market we’re back — to the broker market, in particular, but also to our branches," he said.
Elliott also noted the increased volume came through "operational" improvements and an improved property market.
Before the campaign began, APRA statistics showed ANZ had 15% of the owner occupier home loan market, well behind the Commonwealth Bank's 26% and Westpac with 21%.
"Average (application) levels in the second half were more than 30% higher than the first half," the chief financial officer Michelle Jablko said.
Elliott conceded earlier this year the bank had become too conservative assessing home loan applications.
Westpac chief executive Brian Hartzer advised this week that he expects lending to be “relatively flat” over the 2020 year.
Westpac highlighted that the group’s credit quality “remains sound”.
“Nevertheless, we have seen a small rise in 90 day mortgage delinquencies over the year, in part due to low wage growth and slowing economic activity.
"70% of our Australian home loan customers are ahead on their repayments including offset accounts,” he added.
Hartzer said the economy would continue to feel the squeeze throughout 2020 as the residential construction cycle headed towards a low.
This article first appeared in The Daily Telegraph. 
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jchancellor-FAypfDUnLy

Golden age for big four home loan dominance ending

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Digital bank 86 400 has started offering home loans, becoming the first neo bank in Australia to do so.
Prospective buyers who are eyeing a loan at 86,400, the Sydney-based bank which only launched two months ago, won't need to submit any paper documentation in their applications.
It's been reported the system could take just hours to approve a loan, however it will have to go through a mortgage broker.
The neo bank is offering an owner-occupier variable rate of 3.09 per cent.
Their three year fixed rates for owner occupiers is at 2.88 per cent. 
“86 400 has put an affordable home loan option on the table just two months after launching," RateCity research director Sally Tindall said.
“While their variable rate is significantly lower than the big four banks, if you’re focused on price, there are plenty of cheaper options out there,” Tindall added.
 
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86 400 becomes first neo bank in Australia to offer home loans

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The Design and Building Practitioners Bill 2019 was officially introduced to the NSW Parliament last month.
Minister for Better Regulation Kevin Anderson said the bill outlines key accountabilities of design and building practitioners for the first time.
It aims to improve the quality and integrity of vital design documentation, relied upon by construction professionals and directly addresses the key recommendations of the Building Confidence Report.
“The introduction of this Bill marks a monumental step in the reform of the building and construction industry to improve the transparency, accountability and quality of work within the sector,” Anderson said.
“People should feel confident they can enter the housing market in NSW, knowing their home has been designed and built in accordance with the Building Code of Australia, which is what this Bill is designed to do.”
Reforms in the Design and Building Practitioners Bill 2019 include:
<ul>
<li>The introduction of categories of ‘regulated designs’, which ensures certain designs, including designs for key building elements including fire safety systems, structural elements and waterproofing are properly documented and only undertaken by registered professionals.</li>
<li>A requirement to issue a legally binding compliance declaration, stating compliance with the Building Code of Australia for design practitioners who prepare regulated designs;</li>
<li>A requirement for building practitioners to obtain, rely upon and build in accordance with declared designs, and issue a legally binding compliance declaration, stating that the final building, including any variations comply with the Building Code of Australia.</li>
<li>A new registration scheme for any practitioner who intends on making a compliance declaration including builders and designers such as engineers and architects.</li>
<li>Enhanced protections for residential homeowners by clarifying that a duty of care is owed by person who carry out construction work, making it easier to bring civil claim for damages.</li>
</ul>
Anderson said the Bill will also provide strong new powers to allow the NSW Building Commissioner including the ability to compel and seize documentation and information, access building sites and order building work to stop.
The Bill also allows for the prevention of the issuance of an occupancy certificate or registration of a strata scheme if serious breaches are believed to have occurred.
Failure to comply with the new laws could result in fines up to $330,000 and the possibility of up to two years imprisonment.
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