Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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]

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

Home Loans

<html><body>
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. 
</body></html>

jchancellor-FAypfDUnLy

ANZ say just 0.19pp will be passed on to borrowers

<html><body>
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

<html><body>
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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