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 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

APRA

soliver-smf6LQXgW9

Expect property prices to fall 5 to 10 percent: Shane Oliver

<html><body>
The Australian Prudential Regulation Authority (APRA) has today released a speech, ‘Enhancing Australia’s superannuation system: a vision of a sustainable future’, delivered by deputy chairman Helen Rowell to the 2017 ASFA Conference in Sydney this morning. In her speech, Rowell presented a vision for a stronger superannuation system that meets the ongoing needs of its members, and explained how changes to the prudential framework will help to deliver this. Mrs Rowell’s comments included:  
<ul>
<li>‘APRA is also taking steps to make sure that the prudential framework supports trustees delivering quality outcomes for superannuation fund members, complementing the Government’s proposed reforms. We will shortly release a consultation package outlining proposed revisions to the prudential framework, including changes to promote greater transparency, especially around expenditure, and implement member outcomes assessments for all funds.’</li>
<li>‘…the changes proposed in our upcoming consultation package are designed to put pressure on poor performers – irrespective of industry segment – to lift their game or, if the needed improvement is not possible within a reasonable timeframe, to gracefully exit the industry.’ 
</li>
<li>‘…at what point does the level of choice become more a headache than a help? It seems legitimate to ask why the industry offers members an average of nearly 200 investment options when many funds have a significant proportion of members in their default MySuper products and hence relatively few members in each o&gt;f the many choice investment options on offer.’</li>
<li>‘Our preliminary analysis of outcomes across the industry using a wide range of metrics suggests, however, that there may be some correlation between enhanced member outcomes and board composition. The trustees with outcomes at the better end of the industry, on average, appear to be those that have appointed independent or non-affiliated directors.’</li>
</ul>
The full speech is available on the website at:  <a id="LPlnk11598" href="http://www.apra.gov.au/Speeches/Pages/Enhancing-Australias-superannuation-system.aspx" target="_blank">http://www.apra.gov.au/Speeches/Pages/Enhancing-Australias-superannuation-system.aspx</a>
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Enhancing Australia’s superannuation system, a vision of a sustainable future: APRA's Helen Rowell

<html><body>
The banking regulator has sounded a warning on high household debt, highlighting the risks to the economy yet again from banks’ high exposure to the mortgage market and their lending practices.
Speaking at the Australian Securitisation Forum 2017 in Sydney, the Australian Prudential Regulation Authority Chairman Wayne Byres expressed his concern at the high level of household debt.
“It is no secret we have been actively monitoring housing lending by the Australian banking sector over the past few years. Throughout this period, our efforts have been directed at reinforcing sound lending standards in the face of strong competition that, in our view, was producing an erosion in lending quality just at a time when standards should be going in the other direction,” he said. 
Byres said banks had to do more to improve serviceability measures, particularly in relation to the "assessment of living expenses and the identification of a borrower’s existing debts".
He said high loan-to-income mortgages are more prevalent in Australia than in other similar countries, such as the UK and Ireland.
Byres pointed to an environment of "heightened risk" as the banking watchdog increases its scrutiny of lending standards of banks.
For context, Byres compared the situation with the UK and Ireland markets. 
“High LTI (loan-to-income lending) in Australia is well north of what has been permitted in other jurisdictions grappling with high house prices and low interest rates such as the UK and Ireland," Byres said.
He said APRA’s key focus will be to ensure housing borrowers are given loans they can realistically service.
“Housing loans represent over 60 per cent of total lending within the banking sector. Our goal has been to ensure APRA-regulated lenders are making sound credit decisions which are appropriate, individually and in aggregate, in the context of broader housing market and economic trends.”
Interest-only lending fell to 23 per cent of total new lending for the quarter-ended September from its earlier 40-50 percent share. Forecasts for the December quarter “suggest something similar again”, added Byres.
However, he highlighted the higher non-performing loans.
“The trend in non-performing housing loans is upward, despite a relatively benign environment for lenders. With historically low interest rates and an unemployment rate that for the past few years has drifted lower, an a priori expectation might have been for non performing housing loans to return to lower levels.”
On new non-ADI lender rules, Byres said APRA would seek to collect data from non-ADI lenders to track aggregate trends in lending activity but not supervise individual lenders. 
“‘Indeed, we are keen to distance ourselves from any perception we are responsible for the activities of any individual non-ADI lender, or for protecting their investors. To be absolutely clear, we have no intention of taking on that role … Our focus is very much on the aggregate.”
Admitting its bigger “interventionist” role in the recent past, Byres said “the net impact has clearly been positive for the financial system: as risk within the lending environment has increased, our actions have helped to strengthen lending standards to compensate”.
</body></html>

APRA chief warning on living expenses in crackdown on bank lending standards

jrobinson-rf4aSBido9

Housing - the importance of solid foundations: APRA's Wayne Byres

<html><body>
Australian Prudential Regulation Authority chairman Wayne Byres told a Senate committee yesterday that he is worried some home loan borrowers have not properly considered the impact of rising interest rates.
He suggests these borrowers might be wrong to assume future wage growth will help retire their borrowings.
Low interest rates are "making high debt levels affordable and that won't always be the case, and that's at the heart of what we are thinking about," he advised.
He's urged bankers to exercise caution because there "a lot of things that seem at extremes".
"Household debt levels are very high relative to household income in particular…and is still on an upward trajectory," Mr Byres said.
"Interest rates are at historically low levels and household income growth is actually relatively subdued, so the idea that people will pay their debs off in the future just because their income will grow strongly is not an assumption you can necessarily make."
He told the senate committee APRA continued to work to reinforce sound lending standards.
"The measures we’ve taken appear to be having a positive impact with strengthened serviceability assessments, moderating investor loan growth and a reduction in high loan-to-valuation lending, and our most recent benchmark for interest only lending to remain below 30 per cent of total new lending looks like it has been comfortably achieved overall."
Mr Byres said on Monday the household debt-to-income ratio (DTI) would need to be "constrained" before lending limits on banks will be lifted.
He reiterated the DTI ratio was important because it shows the ability of a customer to pay back all their debts, not just a particular loan.
He suggested the DTI will be improved once banks adopt 'positive' credit reporting, overcoming a current "blindspot" of banks not being able to see their customers' full financial picture.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Given bank blindspot, APRA's Wayne Byres again warns households on the prospect of rate rises

<html><body>
<div class="cq-article-content-paras section">
Treasury secretary John Fraser has indicated he could seek further regulatory efforts to curb risky property lending.
It came as he warned that debt levels make households vulnerable.
Fraser told a Senate committee hearing today that even though Australian households hold more than $12 trillion in assets - including housing and superannuation - the $2 trillion in outstanding debt means they have become more vulnerable to increases in interest rates in future.
"While there are risks in the global outlook, the greatest impact we can have on our own circumstances will come from getting our own house in order," Mr Fraser told a Senate estimates hearing in Canberra today.
</div>
<div class="cq-article-content-paras section">
"The Reserve Bank will be mindful of this when thinking about domestic monetary policy, though global monetary conditions can also impact upon the wholesale funding costs of Australian banks," he said.
Fraser also told the committee that he expects wages growth to pick up as unemployment falls.
Fraser advised he had been encouraged by signs of a pick-up in wages growth in some major cities and regional centres.
Mr Fraser said he was aware of signs of wages growth in the construction sector in Victoria, among semi-skilled workers in north-west Sydney and construction workers in regional centres.
"I don't want to over-egg it but I think it is starting to pick-up a little," he said.
The Guardian reported Treasury officials admitted they were caught off-guard by the extent of the wages slowdown since the global financial crisis, saying the economic “scars” from the crisis have run deeper than expected in Australia.
On house price growth Fraser suggested it "appears" to have eased in the big cities.
He said there were "welcome signs" of moderation in investor and interest-only borrowing, but that it was still too soon to relax.
"While banks' progress against these measures has been positive, regulators will need to think carefully about whether future efforts to maintain financial stability should lean against cyclical excesses or address structural risks within the financial system," Fraser said.
Fraser was speaking ahead the latest quarterly inflation figures.
According to the Australian Bureau of Statistics (ABS), headline CPI rose by 0.6 percent over the September quarter, leaving the change on a year earlier at 1.8 percent.
Economists were anticipating an increase of 0.8 percent.
The quarterly increase was driven by higher utility, tobacco, and travel prices, offsetting weakness in vegetable, fuel and telecommunication costs.
</div>
</body></html>

 Investors could face further clampdown: Treasury's John Fraser warns

<html><body>
<div>
The Australian Prudential Regulation Authority will keep its caps on lenders' loan activity until household debt levels stabilise.
The prudential regulator made their policy affirmation in an address to building societies and credit unions on Monday by APRA's boss Wayne Byres.
Byers said lending restrictions in interest-only and investor loans were working.
He said they will stay until APRA sees household debt levels stabilise and lending standards increase.  
The crackdown began in late 2014. 
"For those of you who chafe at the constraint, their removal will require us to be comfortable that the industry's serviceability standards have been sufficiently improved and – crucially – will be sustained," Mr Byers said in a presentation to the Customer Owned Banking Convention conference in Brisbane.
"We will also want to see that borrower debt-to-income levels are being appropriately constrained in anticipation of, eventually, rising interest rates."
</div>
<div>APRA's lending restrictions hold growth in investor loans within banks to be no higher than 10 per cent.</div>
<div> </div>
<div>Interest-only property loans must be restricted to 30 per cent of all new residential loans.</div>
<div> </div>
<div>It has resulted in interest-only loans declining from around 40 per cent of all new mortgages to around 15 per cent.</div>
<div> </div>
<div>Mr Byres said he expected that in a period of high house prices, low interest rates, weak income growth and rising household debt levels, bankers would respond by tightening lending standards, which had "absent regulatory intervention, been drifting the other way".</div>
<div>
Byres said lenders had favoured increased market share over prudence.  
"That temptation has, unfortunately, been widespread and not limited to a few isolated institutions – the competitive market pushes towards the lowest common denominator."
</div>
<div> </div>
</body></html>

APRA to keep caps on lenders' loan activity until household debts levels stablise

<html><body>
Australian Prudential Regulation Authority chairman Wayne Byres has said the “community trust and confidence was an important consideration” behind its recent inquiry into money laundering involving the Commonwealth Bank.
He said the CBA has experienced a number of incidents over recent years that have damaged its reputation.
“After the AUSTRAC matter came to light, it was difficult to see how the bank could quickly remedy the situation by itself,” he said.
The APRA chairman’s statement came during his opening statement to the House of Representatives Standing Committee on Economics.
Byres said the inquiry is expected to reaffirm to the larger public of that regulators were working on addressing irregularities and would send a signal to other lenders as well.
“In that sense, we very much see the Inquiry as making a constructive contribution to strengthening the reputation and public standing of the bank,” he said.
“As an added benefit, any issues identified will provide useful learnings to others in the industry.”
He also said that the the risks in the housing market that were pointed out in APRA’s 2015/16 Annual Report still hold.
“We called out risks in the housing market, the funding profile of the banking system, poor experience in some segments of the insurance industry, and the need to enhance governance and transparency in the superannuation industry. These issues remain prominent today,” said Byres.
Although he said that at a macro level, Australia continues to benefit from a sound financial system that reflects a long period of economic growth and resilience in financial institutions. 
However, there was no room for complacency.
Byres also used the opening remarks to update the committee on APRA’s response to the recommendations from the Committee’s Review of the Four Major Banks.
One of the recommendations was for a review of the licensing requirements for Authorised Deposit-taking Institutions (ADIs) and there were several others designed to strengthen accountability and transparency of financial institutions.
The Banking Executive Accountability Regime (known as the BEAR), will increase APRA's powers, that among other things, include fines to be imposed on errant ADIs.
He said the core objective of the BEAR was "establishing clearer accountabilities for, and expected standards of behaviour by, senior executives within banks" and was being constructed in a manner that is consistent with APRA’s prudential mandate.
</body></html>

APRA chairman says CBA inquiry will establish public trust

<html><body>
Interest-only lending from Australian authorised deposit-taking institutions (ADIs) fell sharply in the June quarter.
“In flow terms, interest-only lending slowed to 30% of total new loans in the June quarter, down from 36% in Q1,” Tom Kennedy, economist at JP Morgan noted. 
“As a result, the stock of interest-only lending contracted for the first time since 2009, with aggregate interest-only lending values slumping by $2.3 billion.” 
<div class="display-media image primary center">
<a class="cboxElement" href="https://edge.alluremedia.com.au/uploads/businessinsider/2017/08/IO-flow-apra-Q2-2017.jpg" rel="modal"><img class="size_primary" src="https://edge.alluremedia.com.au/uploads/businessinsider/2017/08/IO-flow-apra-Q2-2017.jpg" alt=""></a>Source: JP Morgan
</div>
Along with a slowdown in new interest-only lending and the outright decline in the total value of interest-only loans, Kennedy said that there was also evidence banks are becoming more selective in their loan criteria, particularly in regard to high loan-to-valuation (LVR) lending. 
<div id="taboola-mid-article-stream-thumbnails" class=" trc_related_container trc_spotlight_widget">“The share of loans with an LVR higher than 90% has fallen further to 6.9% of total loans, while the share of lending to borrowers with deposits of more than 20% continues to increase,” he says.</div>
The number of housing loans by banks whose exposure to the residential market is more than $1 billion was up 3.2 percent in the June quarter compared with a year ago, according to the prudential regulator’s latest statistics.
The Australian Prudential Regulation Authority’s Quarterly Authorised Deposit-taking Institution (ADI) Property Exposures for the June 2017 quarter showed the number of housing loans for ADIs with greater than $1 billion in housing loans grew to more than 5.8 million compared with 5.6 million in the June 2016 quarter.
<a href="https://www.propertyobserver.com.au/images/2017/08/29/APRA-Resi.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/29/APRA-Resi.png" alt="">
The new housing loans approved in the quarter edged up slightly at $98.7 billion from $98.4 billion in the year-ago quarter.
Similarly, the average balance of housing loans also rose to $262,200 from $252,100, a rise of 4 percent for the comparable period.
<a href="https://www.propertyobserver.com.au/images/2017/08/29/APRA-CommProps.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/29/APRA-CommProps.png" alt="">
 
</body></html>

Interest only loans in decline: APRA quarterly stats

<html><body>
<div>APRA released its latest Monthly Banking Statistics for June 2017 yesterday, detailing information on the banking business of individual banks within the domestic market.</div>
<div> </div>
<div>Further strong mortgage growth of +0.63 per cent was reported taking the total for outstanding housing loans to a fresh high of $1.57 trillion.</div>
<div> </div>
<div>The figures officially reported were $1,107,754 million (+0.73 per cent) for owner-occupier mortgages and $552,270 million (+0.44 per cent) for investment mortgages outstanding.</div>
<div> </div>
<div>Thus investment mortgages now officially account for 35.2 per cent of banking loan books, classification issues notwithstanding. </div>
<div> </div>
<div>Investor loan books</div>
<div> </div>
<div>Looking specifically at investor loans, it's clear that none of the major banks is close to the arbitrary 10 per cent 'speed limit' or annual growth cap imposed by the regulator.</div>
<div> </div>
<div>As you can see, of the major lenders Westpac Banking Corporation (WBC) is ramping up its investment loan exposure at the present time. </div>
<a href="https://www.propertyobserver.com.au/images/2017/08/04/banks.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/04/banks.jpg" alt="">
<div>Indeed, Westpac (WBC) is presently expanding both sectors of its mortgage book, and has the largest exposure to investment loans overall at $146.8 billion, although Commonwealth Bank of Australia (CBA) has a more substantial loan book in aggregate.</div>
<a href="https://www.propertyobserver.com.au/images/2017/08/04/APRA3.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/04/APRA3.jpg" alt=""></div>
<div class="separator"> </div>
<div>Although the majors have wound back growth in investment loans, some other lenders continue to exceed the 10 per cent growth cap comfortably.</div>
<div> </div>
<div>Additionally certain lenders have loan books that are exposed to markets at risk of mortgage arrears, including regional Queensland.</div>
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</body></html>

APRA

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

APRA

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News