Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Home Loans

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ANZ Bank is the only big four bank that will not pass on the Reserve Bank's 0.25 percentage point reduction in official interest rates to home loan customers, blaming the decision on higher funding costs.
ANZ Bank will instead reduce its home loan rates by 0.19 of a percentage point, with its benchmark rate for owner-occupiers falling to 5.37 per cent.
ANZ's move came after National Australia Bank, Westpac, Commonwealth Bank and Bank of Queensland said they would pass on the full RBA cut to their home loan customers.
ANZ posted a 24 per cent slump in profit and cut its dividend on Tuesday.
It suggested its decision struck the right balance between the interests of customers and shareholders. 
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jchancellor-FAypfDUnLy

ANZ say just 0.19pp will be passed on to borrowers

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CommBank is reducing the interest rate on its SVR home loan account by 0.25% p.a., effective Friday, 20 May.
It's new SVR is 5.35% p.a.
The bank joined the NAB and Westpac in makiny announcements confirming the full rate cut. 
Just the ANZ, of the big four, refrained from any same day business hours announcement.
National Australia Bank was first to cut the interest rate on its standard variable home loan rate by 25 basis points this afternoon.
It is the full amount of the RBA's cut.
This announcement means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 percent p.a. to 5.35 percent p.a.
NAB customers with a Standard Variable Rate home loan will save an average of $47-a-month on their monthly home loan principal and interest repayments based on a $300,000 loan over a 30-year term.
NAB Group Executive Personal Banking Gavin Slater said in making the decision to change interest rates, the bank considers a range of factors.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said. 
“Today’s decision balances the needs of our home loan customers with our shareholders.” 
Today’s change applies to Owner Occupier and Residential Investment variable rate home loans.
·         For owner occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate) the rate will reduce from 5.60 percent p.a. to 5.35 percent p.a.
·         For residential investors with NAB’s Variable Rate for Residential Investment Home Loans the rate will reduce from 5.75 percent p.a. to 5.50 percent p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.25 percent p.a. 
The new rates will be effective from Monday 16 May 2016.
 
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Commonwealth Bank joins NAB and Westpac in passing on entire RBA rate cut

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Westpac has follow NAB to pass on the full May 2016 rate cut.
National Australia Bank was first to cut the interest rate on its standard variable home loan rate by 25 basis points this afternoon.
It is the full amount of the RBA's cut.
This announcement means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 percent p.a. to 5.35 percent p.a.
NAB customers with a Standard Variable Rate home loan will save an average of $47-a-month on their monthly home loan principal and interest repayments based on a $300,000 loan over a 30-year term.
NAB Group Executive Personal Banking Gavin Slater said in making the decision to change interest rates, the bank considers a range of factors.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said. 
“Today’s decision balances the needs of our home loan customers with our shareholders.” 
Today’s change applies to Owner Occupier and Residential Investment variable rate home loans.
·         For owner occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate) the rate will reduce from 5.60 percent p.a. to 5.35 percent p.a.
·         For residential investors with NAB’s Variable Rate for Residential Investment Home Loans the rate will reduce from 5.75 percent p.a. to 5.50 percent p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.25 percent p.a. 
The new rates will be effective from Monday 16 May 2016.
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Westpac follow NAB with full May 2016 rate cut

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Lenders are offering large discounts for new business and rebates for new borrowers refinancing with them, according to Alan Hemmings from Oxygen Home Loans.
He recently noted the following examples. 
New business discounts (owner occupied loans with LVR below 80 percent) 
<ul>
<li>St George offered a 1.35 percent discount on new business valued above $500k and 1.45 percent above $1m</li>
<li>Commonwealth Bank of Australia offered a 1.4 percent discount on new business above $750k</li>
<li>Suncorp offered a 1.55 percent discount on new business above $150k</li>
</ul>
Refinancing rebates (T &amp; C apply) 
<ul>
<li>St George is offering a $1,500 rebate for all new refinances valued above $250k</li>
<li>Commonwealth Bank of Australia is offering a $1,500 rebate for all new refinances valued above $250k</li>
</ul>
Alan said every bank has a different process for assessing your application and this is known as your credit score – not to be confused with your credit file:
<ul>
<li>Your credit score is a form of ranking applied to you as a person by a lender. It is based on a range of factors unique to the lender and based on the performance of their loan book. They look at all the attributes of clients who have loans that perform to determine the types of clients they will lend to; and </li>
<li>Your credit file is a long-term record of your financial behaviour, which banks can access to help them calculate your credit score. Have you ever defaulted on a home loan repayment or electricity bill? Bought new furniture on interest-free terms? Applied for a home loan or any other finance? All of this will be on your credit file </li>
</ul>
How your credit score is assessed could mean the difference between application approval and decline; and it will also impact how much money you can borrow, sometimes by tens or even hundreds of thousands of dollars. 
Factors lenders consider to determine your credit score. 
<ul>
<li>Your age </li>
<li>Drivers’ licence – lenders see this as an indication of financial stability </li>
<li>Home phone number – another indication of stability </li>
<li>Number of credit enquiries on your credit file (such as home loan applications that were rejected or approved but not used; as well as purchases on interest-free terms, such as new furniture) </li>
<li>Defaults on your credit file (gas, electricity, council rates, home loan repayments) </li>
<li>Employment – lenders will look at your type of employment (part-time, casual, self-employed, contract or full-time); the industry you work in; and how long you’ve worked for your current employer. If you are full-time in a relatively stable industry and you don’t change jobs every two years, you will score higher than someone who is part-time or has changed jobs frequently </li>
<li>Savings history – lenders will consider how much you’ve saved and over what timeframe. Your ability to save indicates your ability to repay a loan </li>
<li>Other assets – includes cars, furnishings, shares etc. A strong asset base, like a strong savings history, shows you’re not wasting your income and you’re motivated to build wealth</li>
<li>Loan to valuation ratio (LVR) – the lower your LVR, the better your credit score. This ties in to your savings history – the larger your deposit the better</li>
<li>Residential history – lenders want to know whether you’re still living at home, boarding, renting, living in your own property etc. How long you’ve lived there is also an important indicator of stability </li>
</ul>
He said there’s also many crucial differences between lenders in how they calculate your credit score.
Part of your credit score relates to ‘serviceability’ – that is, your ability make your repayments.
This, in addition to your equity in other assets, will determine how much you can borrow. 
<ul>
<li>Examples of differences in how lenders assess your income (or ‘serviceability’) </li>
<li>Rental income – lenders will use 60 percent-80 percent of your rental income. Some lenders will use rental income as determined by a valuation, others will use actual rent receipts</li>
<li>Other mortgage debts – most lenders now apply the benchmark rate to other existing debts, so a rate of 7.5 percent is applied to existing mortgages rather than the 4-5% you’re actually paying now </li>
<li>Credit card debt – lenders will use 2.5 percent-3 percent of your credit limit (not the outstanding balance) to calculate a monthly repayment</li>
<li>Other expenses – any regular ongoing expenses will factor into your serviceability </li>
<li>Bonus Income – lenders will use 80 percent-100 percent of any bonus income</li>
<li>Commission income – lenders will use 80 percent-100 percent of any commission income</li>
<li>Industry allowances – some lenders won’t include allowances at all, others will use 80-100 percent of shift allowances or tool allowances when calculating income</li>
<li>Overtime – lenders will generally use 80 percent of overtime income</li>
</ul>
He said you can imagine what a difference it would make if your chosen lender bases their calculations on 80 percent of your rental income, 100 percent of bonus income and 100% of your allowances compared to say, 60 percent. 
"In order to ensure your loan application is approved for the highest possible borrowings; and to avoid loan rejections which will stay on your credit file for 7 years, you need to choose the lender that will assess you the most favourably when making your next application," he said.
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Lenders seeking new borrowers with discount offers

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GUEST OBSERVER
Total new loans (personal, business, housing &amp; lease) rose by 3.5 percent in February after a 3 percent fall in January. Lending was just 5.5 percent shy of the 7ó-year high recorded in September.
Total lending is down 0.7 percent on a year ago.
Consumer sentiment: The Westpac/Melbourne Institute index of consumer confidence fell by 4 percent in April to 95.1 – a 7-month low. A reading of 100 is the dividing line separating optimism from pessimism.
Dwelling starts: Starts fell by 5.1 percent in the December quarter after lifting by a revised 2.3 percent in the September quarter. Work started on a record 220,845 new dwellings over the year to December, well above the decade average of 164,317 dwellings.
China trade data: The trade surplus narrowed from US$32.59 billion to US$29.86 billion in March. Exports were up 11.5 percent over the year (forecast: +2.5 percent) while imports were down by -7.6 percent (forecast: -10.1 percent).
The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. The consumer confidence data is important for retailers and consumer-facing businesses. Building &amp; building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.
<a href="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%202.57.15%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%202.57.15%20PM.png" alt="">
What does it all mean?
A mixed bag in terms of the data flow. Aussie consumers have certainly become more cautious, with confidence levels sliding to 7-month lows. The result mirrors the four-week slide in the weekly consumer sentiment survey.
Unfortunately elections cause consumers and businesses to hold back on spending, employment and investment plans, and that is the risk to the positive momentum that has built up in recent months. Interestingly not even a stronger Australian dollar has been able to prop up consumer confidence. No doubt policymakers would be hoping that the slide in confidence is a temporary situation.
Encouragingly the lending data was more upbeat alongside better exports figures out of China. The last couple of months of Chinese data need to be studied with caution given the timing of Chinese New Year.
However the latest data certainly suggests that activity levels are lifting and no doubt will give investors a degree of optimism, particularly in light of the recent surge in commodity prices.
The lift in borrowing across the economy in February essentially negates the prior month’s weakness. Overall, lending is healthy - no doubt driven by housing but leasing has also been strong. The hope would be that business borrowings continue to lift - driving investment and supporting medium term growth.
The generational low interest rates will be supportive of further borrowing – but there is no guarantee. The interesting point for the Reserve Bank though is whether another cut in the cash rate would serve any purpose.
Borrowers are cautious about taking on more debt. And lower interest rates compress bank margins, affecting profits and potentially investment, employment and shareholder returns.
<a href="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%202.59.33%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%202.59.33%20PM.png" alt="">
What do the figures show?
Lending Finance
Total new loans  (personal, business, housing &amp; lease) rose by 3.5 percent in February after a 3 percent fall in January. Lending was just 5.5 percent shy of the 7ó-year high recorded in September. Total lending is down 0.7 percent on a year ago.
Housing finance:  The seasonally adjusted measure of construction and new purchases rose by 1.7 percent in February while alterations &amp; additions rose by 2.7 percent. Home loans are up 15.6 percent on a year.
Commercial finance : The seasonally adjusted series for the value of total commercial finance commitments rose by 5.6 percent in February after falling by 2.6 percent in January. Revolving credit commitments rose by 10.6 per cent. Fixed lending commitments rose by 4 percent. Business loans are down 5.6 percent over the year.
Personal finance : The seasonally adjusted series for the value of total personal finance commitments fell by 3.1 percent in February after falling by 1.3 percent in January. Revolving credit commitments fell by 9.8 percent and fixed lending commitments rose by 1.3 percent. Personal loans are down 11.9 percent over the year.
Within personal fixed finance commitments,  loans for new cars were up by 17.2 percent on a year earlier while loans for used cars were up 4.3 percent. Loans for residential blocks of land were up by 10.8 percent on a year ago.
Lease finance : Lending fell by 3.3 percent in February and was up 9.2 percent over the year.
Consumer sentiment:
The Westpac/Melbourne Institute index of consumer confidence fell by 4 percent in April to 95.1 after sliding by 2 percent in March. The confidence index is down 1.1 percent on a year ago.
The current conditions index fell by 1.1 percent while the expectations index fell by 6 percent.
Four of the five components of the index fell in April:
The estimate of family finances compared with a year ago was down  by 3.9 percent;
The estimate of family finances over the next year was down  by 6.6 percent;
Economic conditions over the next 12 months was down  by 5.5 percent;
Economic conditions over the next 5 years was down  by 6 percent;
The measure on whether it was a good time to buy a major household item was up  by 1.1 percent.
Gender &amp; demographics: Men (index reading of 99.2, down 5.1 percent) were more optimistic than Women (91.2, down 3.3 percent). The sentiment index for young people rose by 10.7 percent to 109.6 in April. Across the other demographics: 25-44 years (index 99.4, down by 3.6 percent); 45 years plus (index 88.7, down 7.8 percent).
Housing outlook: A good time to buy a dwelling? – Index down 9.2 percent in the month and down 12.3 percent on the year.
State sentiment levels: NSW (down 10.3 percent), Victoria (up 0.7 percent), Queensland (up 7.4 percent), Western Australia (down 12.2 percent) and South Australia (down 5.9 percent).
<a href="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%203.00.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/Screen%20Shot%202016-04-13%20at%203.00.32%20PM.png" alt="">
Dwelling starts
Dwelling starts (commencements) fell by 5.1 percent in the December quarter after lifting by a revised 2.3 per cent in the September quarter. House approvals fell by 5.4 percent and apartments fell by 3.8 percent. Work started on a record 220,845 new dwellings over the year to December, well above the decade average of 164,317 dwellings.
Across Australia, starts in the December quarter rose in five states: NSW (up 1.6 percent); Victoria (up 4.7 percent); Queensland (up 4.9 percent); South Australia (down 4.8 percent); Western Australia (down 5.7 percent); Tasmania (down 2.8 percent); Northern Territory (up 2.1 percent); and the ACT (up 2.9 percent)
In the year to December, dwelling starts were higher than the decade average in all the states &amp; territories except for Western Australia (down 12 percent) and South Australia (down 9.5 percent). Starts were at record highs in Victoria (68,943), and NSW (59,016).
Dwelling starts in NSW in the December quarter were 62.9 percent above the decade average.
Chinese trade data
The trade surplus  narrowed from US$32.59 billion to US$29.86 billion in March. Exports were up 11.5 percent over the year (forecast: +2.5 percent) while imports were down by -7.6 percent (forecast: -10.1 percent).
What is the importance of the economic data?
Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
What are the implications for interest rates and investors?
The Reserve Bank will maintain its ‘easing bias’ as it attempts to gauge how the economy is tracking. No doubt the lift in the Australian dollar to above US77c following the release of the China trade figures would cause policymakers some angst if it was maintained. Tomorrow’s labour market figures and inflation (April 27) will be the key data points ahead of the May Reserve Bank Board meeting.
It’s important not to ‘over-think’ consumer confidence. For most punters, the Aussie dollar, interest rates, petrol prices, home prices and the job market are the key factors determining whether someone is positive or negative on supposedly ‘economic’ issues.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Lending lifts, confidence at 7-month lows: CommSec's Savanth Sebastian

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Home buyers continued to take advantage of low interest rates with a greater proportion fixing their home loans in the first three months of the year, according to a report released by ASX-listed Australian Finance Group.
The start of calendar 2016 has seen lending for fixed rate products peak at 17.7 percent of AFG’s total volume for the quarter, according to the company's Mortgage Index.
By comparison, the percentage of those fixing their rates in the first quarter of the 2016 financial year was 11.4 percent. 
“With sections of the money market making the call of a rate cut in the coming months there are some very attractive fixed rates available. With rates being at historical lows the downside risk of fixing is relatively small so many borrowers are choosing to lock in now,” said Mark Hewitt, AFG general manager, Sales and Operations.
“Despite this month’s decision by the Reserve Bank of Australia to leave the cash rate on hold at a record low 2% there are also no guarantees lenders won’t make their own moves outside the RBA cycle. Some are talking about increased funding and regulatory costs and locking the low rates in now is a way borrowers can insulate themselves against any out of cycle increases by the banks. This quarter has also seen investor numbers on the rise again, with an increase from 31 percent of AFG’s total volume to 33 percent as lenders return to the investor market having fallen below the growth cap set by the regulator last year.”
AFG’s overall volume was up 5.7 percent on the same quarter in 2015, with Victoria leading the states with an increase of 15.7 percent, followed by SA up 11.3 percent, NSW up 10.5 percent and Queensland recording a rise of 7.6 percent. The resources downturn has hit WA activity with that state recording a drop of 16.7 percent and NT dropping by 28 percent on the same time last year.
“In a positive message for the health of the lending market, the average LVR (loan to value ratio) of 68 percent is the lowest it has been for three years,” said Hewitt.
“This means homebuyers are continuing to borrow within their capabilities.”
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Fixed rates for home mortgage in favour: AFG index

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La Trobe Financial has been voted as Australia's Best Specialist Lender at the International Alternative Investment Review awards in Hong Kong.
The awards cover global finance, wealth management, brokerage and asset management providers worldwide.  
Winners were chosen from a short list of nominees selected by over 50,000 investors globally from over 120 countries following a review by an independent and objective judging panel.
La Trobe Financial's president and chief executive officer, Greg O'Neill said lending volume results in originating over $300 million per month and the awards we are achieving today demonstrate delivery of a clear, coherent strategy, executed with considerable discipline, combined with our philosophy of focusing on our clients’ interests first. 
"We are a stable lending platform that brokers can and will continue to trust and this Best Specialist Lender award recognises that,” he said.
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La Trobe Financial wins international award

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The Australia and New Zealand Bank has a list of more than 50 postcodes, concentrated around Western Australia, Queensland and NSW mining towns, that it describes as "not acceptable" for providing lenders mortgage insurance.
The number of postcodes has increased from 30 in 2013. 
Last year June it emerged ANZ required a deposit of at least 30 percent for mortgages in 44 postcodes, including to reflect the “localised downturn in a small number of towns dependent on the mining sector”.
"We regularly review lending policies to ensure we are operating within our risk appetite and practising responsible lending for our customers," a spokesman told The Australian Financial Review this week.
 "There are no designated 'blackspots'," he added. The AFR published a selection of the 50 postcodes. 
 
<table style="height: 903px; width: 421px;" border="0"><tbody>
<tr>
<td>Postcode</td>
<td>Suburb</td>
<td>State</td>
<td> </td>
</tr>
<tr>
<td>2835</td>
<td>Bulla</td>
<td>NSW</td>
<td> </td>
</tr>
<tr>
<td>2880</td>
<td>Broken Hill</td>
<td>NSW</td>
<td> </td>
</tr>
<tr>
<td>2898</td>
<td>Lord Howe Is</td>
<td>NSW</td>
<td> </td>
</tr>
<tr>
<td>2899</td>
<td>Norfolk Is</td>
<td>NSW</td>
<td> </td>
</tr>
<tr>
<td> 853</td>
<td> Tindal</td>
<td> NT</td>
<td> </td>
</tr>
<tr>
<td> 885</td>
<td> Alyangula</td>
<td> NT</td>
<td> </td>
</tr>
<tr>
<td> 886</td>
<td> Jabiru</td>
<td> NT</td>
<td> </td>
</tr>
<tr>
<td> 4745</td>
<td> Dysart</td>
<td> Queensland</td>
<td> </td>
</tr>
<tr>
<td> 4717</td>
<td> Blackwater</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4413</td>
<td> Baking Board</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4415</td>
<td> Columboola</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4702</td>
<td> Alberta</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4680</td>
<td> Barney Point</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4719</td>
<td> Camboon</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4721</td>
<td> Argyll</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4744</td>
<td> Morambah</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4801</td>
<td> Hayman Is</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4803</td>
<td> Hamilton Is</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 4804</td>
<td> Collinsvile</td>
<td> Qld</td>
<td> </td>
</tr>
<tr>
<td> 5725</td>
<td> Olympic Dam</td>
<td> SA</td>
<td> </td>
</tr>
<tr>
<td> 5722</td>
<td> Andamooka</td>
<td> SA</td>
<td> </td>
</tr>
<tr>
<td> 5731</td>
<td> Bollards Lagoon</td>
<td> SA</td>
<td> </td>
</tr>
<tr>
<td> 7470</td>
<td> Rosebery</td>
<td> Tas</td>
<td> </td>
</tr>
<tr>
<td> 7467</td>
<td> Lake Margaret</td>
<td> Tas</td>
<td> </td>
</tr>
<tr>
<td> 7151</td>
<td> Casey</td>
<td> Tas</td>
<td> </td>
</tr>
<tr>
<td> 7257</td>
<td> Cape Barren Is</td>
<td> Tas</td>
<td> </td>
</tr>
<tr>
<td> 3852</td>
<td> East Sale</td>
<td> Victoria</td>
<td> </td>
</tr>
<tr>
<td> 6716</td>
<td> Fortescue</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6751</td>
<td> Chichester</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6760</td>
<td> Marble Bar</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6429 </td>
<td> Coolgardie</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6718</td>
<td> Roebourne</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6161</td>
<td> Rottnest Is</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6430</td>
<td> South Kalgoorlie</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6432</td>
<td> Boulder</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6638</td>
<td> Cooladar Hill</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6639</td>
<td> Sandstone</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6710</td>
<td> Cane</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6728</td>
<td> Camballin</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> 6798</td>
<td> Christmas Is</td>
<td> WA</td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td>  
</td>
</tr>
</tbody></table>
 
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The ANZ's 50 property investor no-go postcodes

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The financial media had an arousing day extrapolating the January Housing Finance figures.
Although I didn't have time to read all of the articles, the headlines variously describing these data as confirming a housing downturn, a fall, a cooling, a sinking, and for reasons that weren't entirely clear, even "home loans dropping at their fastest rate in 7 years"!
In actual fact, home loan activity hit its highest level in 7 years last month, while the investor sector has slowed.
Whatevs, it's fairly typical for total dwelling finance to decline by 20 to 30 percent in January as Aussies focus on the beach or their Christmas turkey, so there is obviously a fair bit of reliance on how accurate or otherwise the seasonal adjustments prove to be.
Such data series tend to jump around a bit from month to month, so the important thing to do is follow the trend, and to observe the data in conjunction with other metrics.
The US nonfarm payroll figures represent a fine case in point, with a decline in average earnings of 3 cents in February variously intimated to be one of the biggest falls since Niagara, despite the fact that earnings had increased by 12 cents only in January.
Back to the housing figures, the original data showed total dwelling finance of $25 billion, which was only slightly higher than the total for the preceding January, underscoring the dampening of investor activity.
That said, the chart of original data below may simply be mimicking what happened to CoreLogic-RP Data's mortgage index, which observed platform events declining sharply for the same period before recovering strongly in more recent weeks.
 <img src="https://4.bp.blogspot.com/-5lbDdHSvarE/Vt_gJZwpUTI/AAAAAAAAbv8/XWUp4pI-wZs/s640/A3.jpg" width="640" height="344"> The most obvious explanation for the pullback is that the crackdown on investor finance has run interference on the pace of lending to that sector, as lenders continue to apply more rigorous criteria. Certainly I've come across numerous examples of stymied demand relating to would-be investors who are needing to try several avenues in order to secure finance, and many are having to wait to secure loans (for example, needing time to save larger deposits, or to prove higher levels of serviceability). With interest rate settings as low as they are, there is evidently an enormous pent up demand for investment loans, but APRA has quite sensibly decided not to let the investor sector get any further ahead of itself. There is litte such weakness to be found in the owner-occupier lending sector, with the value of commitments in January well up on last year, and some +42.3 percent higher than the equivalent figure for January 2012. 
<div class="separator"><img src="https://2.bp.blogspot.com/-cclSLOcaxcY/Vt_gJV7wfrI/AAAAAAAAbv4/sov-6_hRf8Q/s640/A2.jpg" width="640" height="356"></div>
 There has been a high volume of refinancing in recent weeks, which muddies the macro picture somewhat. Construction boom set to peak The residential construction boom and its associated multiplier effect still has legs, but in reality the industry is already going like the clappers in Sydney and some other cities, to the extent that labour costs have spiked to reflect an industry operating at close to its full capacity. This dynamic cannot continue in perpetuity - nor should it - and the downturn in the residential construction sector will likely begin to reveal itself at some point later in the calendar year. While the data charted below are only indicative rather than definitive, they do appear to support the notion of an imminent peak. <img src="https://2.bp.blogspot.com/-L8_4S3F8M0E/Vt_gLG6bmyI/AAAAAAAAbwI/j2F3V_q7ICU/s640/A6.jpg" width="640" height="348"> Similarly the number of new dwellings financed is tracking at a historically high level, but also looks peaky. 
<div class="separator"><img src="https://1.bp.blogspot.com/-BLyGNP_wCq0/Vt_gKf8ZhKI/AAAAAAAAbwA/Mb0ctNU9yT4/s640/A5.jpg" width="640" height="346"></div>
 First timers &amp; renovations First homebuyers accounted for only an estimated 15.1 percent of dwellings financed in January which is below the long run average, though the Australian Bureau of Statistics does note that this figure is only an estimate since some lenders are not yet reporting correctly. Although conventional wisdom is that first homebuyers are inactive being priced out of the market, comprehensive surveys carried out by Digital Finance Analytics (DFA) have shown that many are opting to get onto the housing ladder as investors, as those of us active in the market are only too aware. Actual first time buyer purchases have been tracking at around 13,000 per month in line with the long run average, with DFA surveys finding that many are using the "bank of Mum and Dad" (and some fortunate souls are buying for cash, thereby escaping being captured by the housing finance data entirely). <img src="https://1.bp.blogspot.com/-U-3JNA5yqVM/Vt_gKGkaAwI/AAAAAAAAbwE/b2EM0peyfWA/s640/A4.jpg" width="640" height="366"> Finally, it has taken a heck of a long time to get things moving but major renovations activity is at last picking up as households enjoy the wealth effect of cheaper mortgage repayments and rising dwelling prices. <img src="https://1.bp.blogspot.com/-28gyyeZ7js8/Vt_gJZoxSLI/AAAAAAAAbv0/O-qKsnqK880/s640/A1.jpg" width="640" height="352"> Sydney clearly leads the way in terms of renovation activity as one would expect. Outstanding research once gain by CoreLogic-RP Data featured on yesterday's national news showed that 18 of the top 20 suburbs with the highest percentage of home equity are unsurprisingly located in Sydney. The other two are in Melbourne. The 20 suburbs and towns with the most depressed levels of home equity read like a list of yesterday's regional property hotspots, including but not limited to: Moranbah, Gladstone, Mackay, Whitsundays, Bundaberg, Mount Isa, Rockhampton, Whyalla, Greater Geraldton, and Muswellbrook. Just as in regional New Zealand, the commodities crash has hit much of regional Australia hard. Interestingly, we are presently in the midst of a commodity price mini-boom with oil prices rebounding and iron ore futures again hitting "limit up" during today's trade to hit their highest level since July 2015. While this is potentially a welcome windfall for the budget, don't be headfaked by it - the resources construction collapse still has a long, long way to run, and the deleterious impacts will be felt across many regions for years to come. The wrap Overall, it would be premature extrapolation to read too much in the January figures, even though the trend certainly points towards a considerably lower level of investor activity in 2016 than was the case at the mid-2015 peak. As always, it also pays to recognise that there is one singular "housing market", since some markets are performing very strongly, helping to offset the poor perfomance in many resources regions. News of a downturn would certainly be news to residents of Kingsford in Sydney, where an unrenovated dump on a 499.5 square metre plot sold for a an outrageous $3,065,000 on Saturday (this was more than $1 million over the reserve price, and note the price guide!), having previously fetched $1,015,000 back in March 2008, when many commentators were predicting a price correction. Surry Hills, an inner Sydney suburb with a vacancy rate of just 1.1 per cent, has recorded a series of sprightly results, and doubtless there are plenty of other examples in the inner suburbs of Sydney. House prices in Brisbane are also rising, as I noted yesterday.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">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" rel="nofollow">Four Green Houses and a Red Hotel</a>.
 
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pwargent-M4siyDbqQY

Were the January housing figures really that bad? Pete Wargent

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A drop in the number of home loans taken in January and a big fall in the average loan size taken by first home buyers given falling or easing house prices highlights the prospect of greater home loan affordability in 2016, according to the head of banking business act., Amanda Watt. 
Over the month of January, the value of new home loans taken by property buyers dropped 3.4% to $31.9 billion, according to new data from the Australian Bureau of Statistics (ABS). The value of home loans for owner occupiers dived 4.3% to $20.5 billion in January from December while the value of home loans taken by investors also fell by 1.6% to $11.4 billion as buyers withdrew from the property market. 
Reflecting greater home loan affordability, the average loan size for first home buyers fell by $9,300 to $338,800 between December and January. The average loan size for all owner occupied housing commitments fell by $5,400 to $372,400 for the same period. The overall number of home loans taken by owner occupiers in January plunged 3.9% to 55,786. 
“While January is traditionally a slower month, these are still positive signals. Home buyers will welcome any drop in funds needed to buy their first home or make a property investment and the latest housing finance data highlights that buyers borrowed almost $10,000 less to buy their first home in January,” said Watt. 
“While the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments was unchanged at 15.1%, the good news is that growth in house prices has slowed in some cities while prices have dropped elsewhere, so people are needing to borrow less to buy,” said Watt.  
Fixed-rate loans, as a proportion of all new home loans, rose to 13.6% in January from 12.9% in December, as borrowers took advantage of low fixed rates, which have in some cases fallen below variable home loan rates due to downward pressure on wholesale market interest rates. 
act. is an innovative banking service that redirects profits back into social projects. For each product act. has, including home loans, act.allocates ‘impact dollars’ – real dollars taken from the profit it earns – and it gives them back to its customers, who can then donate to a community-focused project of their choice listed on letsact.com.au. 
act. recently won Money magazine’s 2016 Best of the Best award for Best Innovative Banking Product. 
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