IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Joel Robinson

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Abadeen unveils penthouse at Park Residences in Cremorne

Home Loans

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Oversupply of apartments and strong buying by foreign investors could pose a risk to banks, according to international credit rating agency Fitch.
Speaking at the rating agency's conference in Sydney, analyst Andrea Jaehne said settlement risks were rising as she tried to predict the impact of oversupply of new properties on the banks, and the broader economy, the Australian Financial Review reported.
"What is going to be the impact on the economy, housing affordability, especially if we consider the percentage of the labour force employed in construction? The problem is here, not somewhere in Western Australia, and the impact on employment could be much bigger than we think."  
The concern was echoed earlier by senior Fitch manager Ben McCarthy while presenting mortgage arrears data that speculated the construction sector could become a bigger risk than mining given how many people it employed, and how much of that income serviced home loans. About eight per cent of the labour force is employed in construction compared with two per cent in mining.
On the demand for apartments, Jaehne said she was "a bit shocked" to see a steep increase over five years in approvals to foreigners, the AFR report said.
"Developers only need one approval [for off the plan apartments]. They have to market the property in the local market but often they are selling it off in Singapore, Hong Kong and Shanghai."
She said the agency didn't "have the full picture" as to who was buying these properties.
"People who buy a property off the plan don't need an approval. We compared that to what is coming on to the market and we estimate it's 25 per cent being invested by foreigners," she said.
"Also, how will offshore investors react? Will they be happy to accept no capital gains and no rental income? Are they going to sell and what does it mean if 25 per cent of the new build owners sell and what is the impact on their balance sheets?"
Fitch's concerns come as more lenders pull financing from foreign borrowers, leading to concerns that their actions may have an adverse impact on the property market. 
Jaehne presented a chart which showed that about 80,000 housing units would be completed within 12 months in Sydney, Melbourne and Brisbane, about the same number that sold last year. But an additional 125,000 units would be completed within two years.
She said an oversupply of apartments, should it eventuate, would impact the asset quality of the banks. 
The rise in house prices was a concern, she said, given it had not been matched with rising incomes. 
"House prices have gone up – but total income growth hasn't really kept up at the same pace and when you combine this with a low interest rate environment you get an increase in household leverage. That has reached levels that are significantly higher than before."
The agency, however, affirmed the AA minus ratings of the banks and pointed to mitigating factors. Australia is regarded as a strong sovereign, the central bank has full control of its monetary settings, the prudential regulator is seen as strong while the exposures of the banks are manageable.
"What gives us some comfort is that if you look at the exposure for commercial real estate - for the portion of total exposures, one of the banks with the largest exposure has 8 per cent. That is fairly small in an international context."  
The fall in interest rates and rise in house prices had also resulted in an "equity buffer" that can be chewed through, before the banks would experience losses, she said. The simplicity of the banks' business models and the sustainable nature of their profits from low risk lending also made them durable to any adverse impacts.  
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prateek24-ezbwHMbNAk

Property oversupply can pose a risk to banks: Fitch 

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Fixed, split or variable? Home buyers are always faced with the dilemma as to which is the best mortgage for their needs.
Interest rates being fickle, bank loan approvals usually take into account rate rises to make sure the repayment is still affordable, though in the end it still boils down to an individual's capacity to repay. 
The current low interest rate environment has translated to a growth in fixed loans. 
Let's look at each type of mortgage:
Fixed
The biggest advantage of fixed-rate loans is the predictability that comes with it, giving you some peace of mind as you are largely insulated from interest rate fluctuations. 
ASX-listed Mortgage Choice reported earlier this year that the demand for fixed rate home loans hit its highest level in more than 12 months, citing national home loan approval data, with fixed rate home loans accounting for 23.62 percent of all loans written in January, up from 19.44 percent in the previous month. 
But while considering fixed-rate loans, you must carefully consider the time period over which you would be comfortable with paying fixed payments.  
If interest rates drop during this period, you might end up paying more. Obviously, how much lower is the question. Because at present, RBA's cash rate of 1.75 percent is already at record lows.
The best aspect of fixed rate, however, is that it allows you to plan ahead as you already know how much to set aside for the mortgage payment each month.
The popular fixed rate products are usually around three to five years. 
Property Observer went looking for the cheapest fixed home loans on <a href="https://mozo.com.au/home-loans/fixed-rate" target="_blank">mozo.com.au</a> and found that Illawarra Credit Union with an interest rate of 3.5 percent for the first year of mortgage was the one with the lowest rate. It was followed by Greater Bank at 3.79 percent, Illawarra Credit Union with 3.85 percent (for two years), loans.com.au at 3.99 percent and last Hunter United Credit Union at 3.98 percent. 
Fixed-rate loans come with a caveat. If you try to pay off your fixed-rate loan, fixed rate break costs and discharge fees apply.
If your home loan is fixed or if it was setup before July 2011, the exit fees can be significant.
So it may be worth considering a variable rate if your plan is to sell the property after some quickly realised gains. 
Some fixed rate loans include redraw facilities, and some have more flexible terms around repayments allowing you to pay extra up to a certain amount.
Variable
When it comes to variable rate loans, flexibility is the buzz word.
Variable interest rates tend to be lower than fixed rate products, and will have more features as well. However, they do come with an added risk, that of rising interest rates increasing your mortgage payments. So you need to be covered when interest rates rise.
If you’re borrowing less than you can handle, then you may decide that a variable rate is a good option in the immediate term – you can always fix later if necessary.
As of May 17, 2016, the top variable rates offered by lenders varied from 3.63 percent to 4.20 percent, according to mozo.com.au.
Independent lender <a href="https://offers.mortgagehouse.com.au/autumn-special/?campaignid=22150&amp;sourceid=45&amp;gclid=CIXG1-q-4swCFVcnvQodjnoJow" target="_blank">www.mortgagehouse.com.au</a> is offering a variable rate of 3.52% for the first six months, which then reverts to 4.02%. The lender also claims that it doesn't have expensive overheads unlike banks, which allows it to better customise its products and offer lower rates to customers.
Another advantage of variable interest rate home loans is that paying lump sums is easier with fewer associated costs than fixed rate loans.
If you know you cannot increase your repayments significantly, and there's a sudden vacancy in an investment property, then a rate rise can impact you. On the other hand, a rate cut will mean you could find yourself with a bit of extra cash on hand or paying off your mortgage sooner. 
Split
A 'split loan' is a comfortable compromise between the pros and cons of fixed and variable interest rate loans, according to a blog on the website of Suncorp Bank. A split mortgage allows you to reap the benefits of both the security of fixed rate loan and the flexibility of a variable interest rate loan. 
How it works is that you can allocate a portion of your loan amount to attract a variable interest rate, and another portion to a fixed rate, thus you have the security and the flexibility. The split may not necessarily be 50/50, it can be what you are comfortable with.
This provides you partial protection from future interest rate changes.
This may be a good option if you plan to pay off your loan earlier. The extra repayments you make can be solely done on the variable component of the loan.
However, you may have to pay the costs should you wish to break the fixed portion as that part is considered a fixed mortgage. 
As always, these are just rough guidelines and one should always consult a loan specialist to figure out which product is best suited to your needs.
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jchancellor-FAypfDUnLy

How to decide: Fixed, split and variable home loan interest rates

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Greater Bank has cut fixed home loan rates (owner occupier and investment) by up to 0.25 percent and announced a 5 year fixed home loan rate under 4 percent.
The 5 year Ultimate Home Loan will be 3.99 percent from Monday May 16.  
The rate applies to owner occupier loans worth more than $150,000 where the loan to value ratio does not exceed 85 percent. 
The comparison rate is 4.48 percent. The three and four year rates are also 3.99 percent (comparison rates 4.51 percent and 4.49 percent respectively).
Greater Bank also cut all variable home loan rates by 0.25 percent this month.
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po-LsXgBTHBmX

Greater Bank cuts 5 year fixed rate to 3.99 percent

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Australia's largest online lender loans.com.au have announced they will pass on the official rate cut in full. 
Almost half of Australia’s lenders stall on announcing their response to the RBA’s 0.25 percent cut to the official cash rate.
According to a survey from comparison site finder.com.au, 49 percent of the 74 lenders on its database have still not announced their rate changes.
Only 26 have passed on the cut in full and 12 have kept some of the cut for themselves.
Marie Mortimer, loans.com.au managing director was happy to be in the minority of lenders that had quickly let customers know it would be passing on the full cut.
“It is unfortunate that two out of three Australian lenders have either given their customers bad news that they won’t be passing on the full cut or, even worse, are still dragging their heels on revealing their response,” Ms Mortimer said.
“Loans.com.au is very pleased to be able to extend the full rate cut to our customers so they will save money every month on interest and own their home sooner.”
Loans.com.au offers an already low “Move Fast Special” rate which will now drop to a record low 3.63 per cent (comparison rate 4.03 percent).
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j.ballantyne1990-6AQqhLzZaK

Loans.com.au will pass on the cut in full

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Australia's largest non-bank mortgage lender Firstmac will pass the full cut to its customers following the RBA's 0.25 percent cut to the official cash rate.
Almost half of Australia's lenders are continuing to stall on revealing their response, but Firstmac have announced their cut will be effective from May 23.
The cut will apply to all variable rate loans including owner occupier and investment loans.
Firstmac Managing Director Kim Cannon said Firstmac was pleased to be in the minority of lenders who had promptly committed to pass on the full benefit to borrowers.
“It is disappointing that nearly two thirds of Australian lenders have either failed to pass on last week’s RBA rate cut in full, or have not yet announced their response, leaving mortgage brokers in an awkward situation with their customers,” he said.
“There is plenty of competition in the home loan market, and bank customers can see they could be saving money on interest if they chose another lender as well as getting straight answers about how much they will be paying.”
“Bank customers who switch to a Firstmac home loan can save themselves tens of thousands of dollars, and years off their home loan.”
Comparison site finder.com.au found that 49 percent of the 74 lenders on its database have still not announced their rate changes, a full week after the RBA announcement.
Only 26 lenders have passed on the cut in full, while 12 lenders have kept some of the cut for themselves.
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Firstmac to pass on May rate cut in full

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With the RBA cutting its cash rate to a historical low of 1.75 percent, fixed rate home loans look more attractive than ever, although the a majority of lenders are yet to say if they will pass on the rate cut to borrowers.
Property Observer went looking for the cheapest fixed home loans and came up a its five lowest from <a href="https://mozo.com.au/home-loans/fixed-rate" target="_blank">mozo.com.au</a>, listed as lowest rate first:
At the top was Illawarra Credit Union with an interest rate of 3.5% for the first year of mortgage, followed by Greater Bank at 3.79 percent, again Illawarra Credit Union with 3.85 percent (for two years), loans.com.au at 3.99 percent and last Hunter United Credit Union at 3.98 percent. Each had an upfront fee ranging from $350 to $600 except Greater Bank, which did not have any for its fixed one-year product.
<a href="/images/2016/05/12/Screen%20Shot%202016-05-11%20at%2010.58.51%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/12/Screen%20Shot%202016-05-11%20at%2010.58.51%20AM.png" alt="">
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None of the Big Four banks are offering loan rates lower than any of these.
However, on the popular three-year period for fixed home loans, NAB figured at no. 3 with 4.24 percent, behind loans.com.au and UBank UHomeLoan, according to <a href="https://www.finder.com.au/home-loans/fixed-rate-home-loans/3-year" target="_blank">www.finder.com.au</a> for a sample loan amount of $150,000 for a period of 30 years. 
 
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jonathanchancellor-7SQnKwU6yx

Thinking of a fixed home loan? Check out the top 5

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Ratecity.com.au has provided five of the lowest advertised ongoing variable rates as at May 9.
<a href="/images/2016/05/10/Screen%20Shot%202016-05-10%20at%209.13.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/10/Screen%20Shot%202016-05-10%20at%209.13.30%20AM.png" alt="">
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The five lowest variable home loans: Ratecity.com.au 

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UBank have announced it will reduce variable rate loans by 0.25% bringing the standard variable headline rate for new Owner Occupier P&amp;I loans down to 3.74 percent p.a. including a discount of 0.43 percent p.a as part of a value offer.
The new standard variable rate will be effective Monday 16 May 2016. 
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UBank to pass on 0.25 percent p.a. rate reduction to variable rate customers

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Australia's newest bank, Greater Bank, has announced it will reduce interest rates on all variable homes loans by 0.25 percent.
It has also introduced a new special offer home loan at under four percent.
Greater Bank's CEO Scott Morgan said the cut would hit the companies bottom line but it was putting customers first by passing on the cut and ahead of profits.
He said that unlike the major banks and many other lenders, Greater Bank didn't increase variable owner occupied home loan rates for existing customers late last year.
“This customer first approach is one of the reasons DBM’s latest Consumer Atlas study shows Greater Bank is Australia’s most recommended financial institution,” Mr Morgan said.
The cut will be effective for existing customers from May 16.
The banks Standard Variable Home Loan rate will drop to 4.75 percent, the lower rate of comparable loans offered by the big four.
 
<img src="/images/2016/05/05/Screen%20Shot%202016-05-05%20at%2011.53.05%20am.png" alt="" width="358" height="119">
 
Their special variable owner occupied home loan for new customers borrowing more than $150,000 will have a comparison rate of 3.99 percent.
The cut in rates will save a Greater Bank customer with a $300,000 loan around $44 a month.
Greater Bank is customer-owned and provides home loans and other banking services to around 250,000 in New South Wales and South East Queensland. 
 
 
 
 
 
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Australia's newest bank passes on RBA rate cut

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Switzer commentator Paul Rickard says Treasurer Scott Morrison was right when he said that the Tuesday budget is the biggest shake-up to super system in 10 years.
He said on Switzer Daily that middle income Australians will invest monies that would otherwise have made their way into the super system into the family home, investment property and farms.
Paul added that none income producing assets such as collectables (art, rare coins, stamps etc) might also get a boost.
He said Budget had gone one step further from the Perter Costello shake up 10 years ago by slashing what can be put into the system and reducing the tax benefits of keeping money in there.
"Super was never a vehicle for the rich.
"Tuesday night, super was an attractive proposition for the well-off.
"Now, super is really for middle income earners. And whenever tax incentives or disincentives change, behaviours change.
"The well-off or soon to be well-off will look at investments outside the super system, with property, including negatively geared property, an obvious beneficiary.
Another important change is that the transition to retirement pension has been effectively killed from 1 July 2017. The tax benefits are gone, which will come as a shock to many well-off and not-so well off over 55’ers. 
Here is a summary of the changes he saw as bad.
Impacting all superannuants, the government has slashed the concessional contributions cap to just $25,000. 
The change doesn’t apply until 1 July 2017, so he adviser have the remainder of this financial year and next financial year to maximise your contributions.
An even more important change is the new lifetime limit on non-concessional (or after tax) contributions of $500,000.
"To apply from 7.30pm on budget night, this is the change that will have most impact on the well off.
"They simply won’t be able to get large sums into super, so they will look to invest and grow their wealth outside super, most directly into property."
"While the change is not retrospective (ie if someone has already accumulated more than $500,000 in non-concessional contributions they will be allowed to keep it in super), the measurement period will commence from 1 July 2007.
"That’s not a typo - the Government will look back 9 years to count your non-concessional contributions."
Rickard pointed out these changes require legislation by the Parliament.  
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