<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
</section>
</section>

<p>[smartcode_project_cta:default project_id=112661]</p>


SIERA kicks off construction at Northcliffe tower Exhale

Home Loans

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<p>ME Bank has cut its two-year Flexible Home Loan fixed rate for owner-occupiers to 3.89% or 40 basis points.</p>
<p>Head of ME home loans, Patrick Nolan, said the cut comes about following cheaper fixed rate funding.</p>
<p><span style="line-height: 1.3em;">“Savvy borrowers also have the option to split both ourtwo2-year fixed rate with our competitive Flexible Home Loan with Member Package variable rate for new loans of 4.19% p.a,” he said.</span></p>
<p><span style="line-height: 1.3em;">For more information from ME, <a href="https://www.mebank.com.au" target="_blank">click here</a>.</span></p>
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mick.cee-iDmgDDAmu8

ME Bank cuts flexible home loan fixed rate

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<p>GUEST OBSERVER</p>
<p class="normal">New research by comparison website finder.com.au has found that Australians could be preparing for the worst, with preference for people borrowing money for a home against saving money is at its lowest level since the Global Financial Crisis (GFC).</p>
<p class="normal"><span style="line-height: 1.3em;">According to the </span><span style="line-height: 1.3em;">finder.com.au</span><span style="line-height: 1.3em;"> research of the past decade of data from the Australian Prudential Regulation Authority (APRA), the amount of money borrowed from banks for owner-occupied home loans has grown at a slower pace than the amount of money in household bank deposits. In fact, owner-occupied home loan lending by banks has grown by 7.5% – significantly less than household deposits (10.4%) in the past year.</span></p>
<p class="normal">This is despite total owner-occupied home loans across all banks is sitting at an all-time high of $843 billion and total deposits from households is also at a record high of $737 billion.</p>
<p class="normal"><a href="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.34.28%20AM.png" target="_blank">Click to enlarge</a></p>
<p class="normal"><img src="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.34.28%20AM.png" alt="" width="685" height="459"></p>
<p class="normal">Graham Cooke, finder.com.au insights analyst says the trend could indicate consumers are preparing for tougher financial conditions.</p>
<p class="normal">“Before the GFC, we saw the gap between household bank deposits and owner-occupier home loans widening, which saw a peak of $128 billion more home loans funded than what was being saved by households in bank deposits in early 2008. When the GFC hit by the end of 2008, this gap shrunk to $95 billion," he says.</p>
<p class="normal">“From that low point the gap steadily increased again and hit a high of $193 billion in mid-2012.</p>
<p class="normal">“While total household deposits has been more consistent in growth, we’ve seen the amount of money banks are lending for owner-occupied home loans take a dive and the gap is currently at $106 billion – close to where it was at the peak of the global financial crisis.</p>
<p class="normal">“This narrowing indicates an increasing preference for holding money in savings and reducing outstanding mortgages over borrowing for owner-occupied property.</p>
<p class="normal"><a href="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.35.55%20AM.png" target="_blank">Click to enlarge</a></p>
<p class="normal"><img src="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.35.55%20AM.png" alt="" width="662" height="424"></p>
<p class="normal">“This pattern of a slowdown in borrowing for a home and rise in savings could also be an early indicator of a cooling property market.</p>
<p class="normal">“Australians are clearly concerned about their financial futures and property owners and prospective buyers should be cautious of over-capitalising in the current conditions. And with Westpac the latest to announce an increase in variable home loan rates, now is the time for existing borrowers to examine their current home loan and consider refinancing.”</p>
<p class="normal"><em><span>MICHELLE HUTCHISON</span> is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.</em> </p>
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mhutchison-SWt6qigzDX

Consumer sentiment falls to GFC level: finder.com.au's Michelle Hutchison

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<p><span>GUEST OBSERVER</span></p>
<p><span>Who needs the RBA when the banks do their dirty work for them? </span></p>
<p><span>Westpac yesterday announced the increase to their variable rates by 20 points, for both owner-occupied and investment loans. If you have an investment loan at Westpac, your Standard Variable Rate will be 5.95%, so even if you're enjoying a lifetime discount of 1.15%, your rate will still be a whopping 4.80% (well, whopping in todays terms, my dad would yell at me if I called that whopping). </span></p>
<p><span>That rate's more than 60 points higher than it needs to be, even for investment lending.</span></p>
<p><span>Is it just Australia's first bank's turn to break the ice? Our eyes are now peeled whether other banks think they can also get away with it, given the recent regulatory changes and increased capital reserves banks must carry.</span></p>
<p><span>We'll certainly keep you posted, but I must stress its not the Standard Variable Rate that's so important but rather the lifetime discount you manage to get off that, which for home-owners was up to 1% a couple of years ago and up to 1.45% thesedays (for those who get a top-notch broker to go hard negotiating for them). </span></p>
<p><span>My team led by Victoria here at iChoice lodges dozens of <em>pricing requests</em> every week, delighting customers who had no idea what what they could get. It's a buzz.</span></p>
<p><span>The banks are offering all kinds of incentives for you to switch your home loan. Would you prefer $1,500 from Suncorp, $2,000 from St George or 250,000 Award Points from NAB? Personally, all else being equal, I'd take the latter - fancy getting two free return flights to LA for switching to a cheaper home loan!</span></p>
<p><span>NAB rates are fantastic and we can arrange a product with no annual fee ($10 per month instead, so let's call it $120 p.a) which gets you a Qantas credit card and a 100% Mortgage Offset Account. Please call if you want to know what rate you qualify for...it does take us 2 hours to confirm but you will be way impressed.</span></p>
<p><span>My handy hint today is about Land Tax. It's calculated on the investment land you own at midnight December 31st. So if you go to auction during November, see if you can extend settlement settlement till the first week of January, just to save a few bucks. Dont confuse it with CGT which is affected by the date you sign the contract. </span></p>
<p><span>On that note, November and December can be interesting months to attend auctions...good luck to those of you doing so.</span></p>
<p><span><em>Jason Khoury is principal, iChoice Mortgage Brokers and can be contacted <a href="mailto:jason=%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">here</a>.</em></span></p>
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jchancellor-FAypfDUnLy

Banks doing the RBA's dirty work: Jason Khoury

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<p>ASIC has produced a checklist for property investors considering interest-only payments for mortgages as well as a case study and various toolkits.</p>
<p>The self-check website outlines risks associated with interest-only loans, the benefits and offers other tips and advice.</p>
<p>For more information, <a href="https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/interest-only-mortgages" target="_blank">click here</a>.</p>
<p><span>ASIC has also provided a handy tool for interest-only mortgage calculations, <a href="/expert-insights/finance/asic-releases-interest-only-mortgage-calculator"><span>which you can find here</span></a>, as well as a handy guide to interest-only loans for property investors <a href="/expert-insights/finance/asics-interest-only-guide-for-property-investors"><span>available here</span></a>.</span></p>
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Are interest-only mortgages in your interest? ASIC

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<p><span style="line-height: 1.3em;">With one of the country’s biggest lenders announcing lending restrictions to certain suburbs, could this signal changes which could have a much broader impact to the property market?</span><span style="line-height: 1.3em;"> </span></p>
<p><strong>Tiered pricing </strong></p>
<p>It’s not unrealistic for banks to change pricing structures and cap LVR’s based on suburbs. This could take the form of higher rates and/or low LVR caps for certain ‘high risk’ suburbs and lower rates and higher LVRs for what lenders consider a ‘safer’ suburb. A recent example was ING DIRECT’s decision in June to restrict investment lending in NSW to a maximum LVR of 80% (usually 90%), but this has since been restricted to 80% in all other states as well. If this becomes a market-wide issue, this could impact existing owners if they decided to refinance under new rules by making such a move to the goalposts.</p>
<p><strong>Specific apartment developments under the spotlight </strong></p>
<p>If lenders start to put a red flag on suburbs, specific apartment developments which are deemed high risk or where there’s a glut of development, might be next. This could squeeze a huge percentage of investors out of the market,  reducing the affordability and ‘entry point’ for many first time buyers and see them locked out of certain developments but leave the gate open for overseas investors. </p>
<p>These two changes could see a big shift in the way people buy property altogether by changing buying habits, upping rates and lowering accessibility for new buyers. </p>
<p><strong>Change buying habits</strong></p>
<p>If either of these changes occur, we’ll see a shift in the market. Investors will flood certain suburbs because it’s the only places they can buy and owner occupiers will be locked out of certain suburbs due to LVR restrictions. This could have a big impact on property prices - and that of surrounding suburbs - and at a higher level, the demographic make-up of a city. </p>
<p><strong>Increase in number of declined loans </strong></p>
<p>Being knocked back for finance based on a building type or suburb could have a residual impact on a borrower’s ability to apply for loans. This could also impact a borrowers credit score more broadly.<span style="line-height: 1.3em;"> </span></p>
<p><strong>Higher rates across the board </strong></p>
<p>If tiering and capping presents too much of a logistical challenge for lenders combined with a backlash from borrowers, lenders may choose to cover their credit risk by simply increasing interest rates across the board. </p>
<p><strong>Lenders withdrawing from some areas altogether </strong></p>
<p>Mining towns have already been mentioned as high risk areas and if we see large lenders withdraw form these areas, smaller lenders will likely follow suit. This trend tends to apply for most high level changes like pricing or lending criteria – when the big guys move, the smaller lenders follow.</p>
<p><em><span>STEVE JOVCEVSKI</span> is property expert at Mozo.com.au.</em></p>
<p><em>FOR MORE INSIDER INFORMATION ON PROPERTY LOANS, RATES AND MORE: DOWNLOAD THE<a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank"> FREE MOZO EBOOK</a>.</em></p>
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Lending criteria changes have potential to lock owner-occupiers out of market: Mozo's Steve Jovcevski

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<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">Spring home loans are on sale according to comparison website Mozo.com.au, who state t</span><span style="line-height: 1.3em;">he gap between the average Big 4 variable home loan rate and the best offer on market has widened since September 2014.</span></p>
<p style="line-height: 1.3em;">The lowest variable home loan rate is now at a new low of 3.84% due to intense competition.</p>
<p style="line-height: 1.3em;">Mozo director Kirsty Lamont said <span style="line-height: 1.3em;">data shows that the average Big 4 bank variable home loan rate is now 1.00% more expensive than the best on market, up from 0.84% last year.</span></p>
<p>“Four years ago, the lowest home loan rate was 2.74% higher than today’s, proving how important it is to keep an eye on rates and weigh up the potential savings,” she said. </p>
<p>“Lenders are also promoting cash back offers of up to $1,500, annual fee waivers and other discounts to entice Spring buyers and refinancers so it’s an ideal time to shop around and save yourself some serious cash by getting a better home loan deal.</p>
<p>“Online lenders and challenger banks are tightening the screws on the big banks and aggressively lowering rates in a sign that home loan competition is now well and truly back to pre-GFC levels. <span style="line-height: 1.3em;">“Borrowers who look outside the Big 4 banks can now access huge savings, with the top five home loan rates right now all below 4% and exclusively from smaller lenders."</span></p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">A 1.00% difference between the average big 4 bank rate and the best on market works out to be a saving of $20,640 over 10 years on the average home loan, according to Mozo.com.au.</span></p>
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<p><span style="line-height: 1.3em;">For more information <a href="https://mozo.com.au" target="_blank">click here</a>.</span></p>
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Gap widens between Big 4 and best variable rates: Mozo's Kirsty Lamont

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<div>Although commentary often tends to focus on the dollar value of loans written in the housing market (which in the case of Sydney have been going through the roof) the actual number of home loans being written in Australia on a monthly basis is still some way below the levels seen across 2006-8. </div>
<div> </div>
<div>In Sydney home loan volumes have even been tracking well below where they were in 2003 when the headount of the harbour city was considerably smaller, though the past two months of figures have recorded a big surge which is not yet fully reflected in the trend data. </div>
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<div>Looking at the high level figures the trend in home loan volumes has generally been up for the three most populous states since 2012, but transaction volumes can hardly be said to be high compared to where they have been in the past. </div>
<div> </div>
<div>Volumes have been trending down in Western Australia since July 2014, while the trend in the Northern Territory for want of a better word has "crashed" by a third since September and is threatening to soon take out the lowest levels seen in more than a decade. </div>
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<div>Home loan activity levels in South Australia are...flatlining. </div>
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<div><a href="/images/2015/09/15/HF1.jpg" target="_blank">Click to enlarge</a></div>
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<div><span>A similar pattern is also evident when looking at the below chart of home loans by property type, with home loans to purchase established properties in a multi-year uptrend but still not even close to previous heights.</span></div>
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<div><strong><span style="text-decoration: underline;">Stamp</span></strong></div>
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<div>There are a number of reasons for these muted home loans volumes, not least the more significant market share of investors seen through this cycle in Sydney and Melbourne in particular.</div>
<br><span>I'll offer another: stamp duty.</span><br><br><div>With rising property prices already pushing the boundaries of detached housing affordability in Sydney and Melbourne close to breaking point, stamp duty - a levy which is ratcheted up as the purchase price increases - acts as a further disincentive to trade.</div>
<div> </div>
<div>This has long been an issue in London at the premium end of the market, where plainly ridiculous<a href="https://www.gov.uk/stamp-duty-land-tax/residential-property-rates" target="_blank"> </a>rates of stamp duty above GBP 925,000 absolutely discourage buying and selling, and instead encourage owners to sit on prime location sites for as long as they feasibly can. </div>
<div> </div>
<div>I can't speak for others, but certainly whenever I've written a stamp duty cheque to the OSR the last thing I am thinking of is subsequently selling a property, and indeed neither my wife nor I have ever sold a property in 19 years, in part for that very reason.</div>
<div> </div>
<div>While stamp duty can serve one useful purpose in making the market more stable and less attractive to "flippers", it also discourages labour market mobility and creates a royal pain in the tail for homeowners who are required relocate for work. </div>
<div> </div>
<div>Arguably both homeowners and investors are becoming more inclined to such buy and hold strategies while accepting that there will be inevitable market downturns, in part because the transaction costs are so punitive: buy, hold, and hold some more. </div>
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<div><strong><span style="text-decoration: underline;">First homebuyers</span></strong></div>
<div> </div>
<div>On a related note, the share of first homebuyers loans in the market has trended down to 15.4 per cent, which is at least a couple of full percentage points below what was seemingly becoming the norm before the financial crisis struck (whereupon market incentives led to an enormous spike in first homebuyer market share). </div>
<div> </div>
<div>We know that the data may be incompete, but affordability - and specifically the deposit hurdle - is playing an obvious role here too, nudging a proportion of first time buyers towards buying an investment property as a first step onto the housing ladder instead of a place of residence. </div>
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<div><a href="/images/2015/09/15/HF3.jpg" target="_blank">Click to enlarge</a></div>
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<div>
<div>Stamp duty is a key consideration for first homebuyers or new market entrants too.</div>
<div> </div>
<div>It is often said or implied that first homebuyers should start with an entry level property and then look to trade up later, but with the average first homebuyer <strong>loan</strong> <strong>size </strong>now passing $340,000, new entrants to to the market must be seriously considering how many times in their lives they want to be trading property. I know that I would be. </div>
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<div><a href="/images/2015/09/15/HF4.jpg" target="_blank">Click to enlarge</a></div>
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<strong><span style="text-decoration: underline;">Dwelling starts to peak in 2015</span></strong><br><br><div>A number of forecasts and indicators have suggested that dwelling starts could peak in 2015, and the new dwellings data does not contradict them, although with so many new builds being sold offshore to Asia through this cycle arguably this data series is a less useful indicator than it once was. </div>
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<div><a href="/images/2015/09/15/HF2.jpg" target="_blank">Click to enlarge</a></div>
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<span>Construction loans written to owner-occupiers have also been trending down in recent months.</span><br><br><div>On the other hand the rise in property prices and associated equity gains has for some time been predicted to cause a renovations boom. Certainly this is what we witnessed through 2003 as the preceding Sydney market boom approached its peak. </div>
<br><div>There has already been a decent uplift in renovations activity in Sydney, but the "alts &amp; adds" figures to date have barely even hinted at much going on elsewhere. </div>
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<div><a href="/images/2015/09/15/HF6.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/15/HF6.jpg" alt=""></div>
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<div><span>Driving around Brisbane it certainly "feels" as though there is more renovation work underway, but this may just be good old anecdotal evidence giving a bum steer. </span></div>
<div><span> </span></div>
<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Property hot, but volumes not: Pete Wargent

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<p>GUEST OBSERVER</p>
<p>Recent changes to investor lending is failing to have a significant impact on home loan demand, new data has revealed. </p>
<p>According to the July Housing Finance Data from the Australian Bureau of Statistics, 53,095 home loans were approved over the course of the month – up 0.3% on the month prior. </p>
<p>The total value of all dwelling commitments was also up, with more than $32 billion in home loans written throughout July. </p>
<p>The spike in home loan demand and value of dwelling commitments was interesting, especially given the current market conditions. </p>
<p>Over the last few months, Australia’s lenders have made some sweeping changes to their policy and pricing in a bid to reduce their level of investment lending. </p>
<p>As such, you would expect these changes to have some impact on the level of investment demand. But, according to today’s data at least, the changes seem to have had little to no impact on the level of demand.</p>
<p>Of course it is still early days, and considering most of the changes were made in June and July, we are unlikely to see the true impact of these changes for some months yet.</p>
<p>Commenting on the 1.5% spike in the value of all loans written over the month of July, Mr Flavell said the result wasn’t surprising given that property prices across the combined capital cities continue to rise. </p>
<p>Data from CoreLogic found property values actually climbed 2.8% across the combined capital cities over the month of July. </p>
<p>Sydney and Melbourne were once again the standout performers, with the two capital cities recording property price growth of 3.3% and 4.9% respectively.</p>
<p>With property prices continuing to rise quite quickly month after month, there is little wonder why we are seeing growth in the value of all loans written.</p>
<p><em>John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au" target="_blank">Mortgage Choice</a>.</em></p>
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Home loan demand higher despite changes to investor lending: Mortgage Choice's John Flavell

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<p><span>ME Bank will offer $1,250 cashback to customers who apply for new owner-occupier home loans greater than $400,000.</span></p>
<p><span>The offer will apply to all owner occupiers who apply from September 8 to October 2 this year and settle before the 31 December 2015. </span></p>
<p><span>Lino Pelaccia, ME’s general manager of broker sales, says the early spring offer was not available for existing applications, internal refinances or top ups of existing ME home loans.</span></p>
<p><em>For more information, click <a href="https://mebank.com.au/?src=WEB_HLSEM5_06_15&amp;gclid=CPD_pebD6McCFZcnvQod3VIFjA" target="_blank">here</a>.</em></p>
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ME Bank with $1,250 cashback home loan offer for spring 2015

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<p><span>Demand for fixed rate home loans fell to its lowest level in almost three years, new research has revealed.</span></p>
<p><span>According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 17.41% of all loans written throughout the month of August – down 1.05% from 18.46% the month prior.</span></p>
<p><span>Mortgage Choice chief executive officer John Flavell said the drop in fixed rate demand was surprising given the current volatility of the home loan market.</span></p>
<p><span>“Generally speaking, when the market is volatile and lenders are moving their rates – as they are doing now – fixed rate demand increases, as borrowers look for security and consistency around their mortgage repayments,” he said.</span></p>
<p><span>“In recent weeks, many of Australia’s lenders have increased their interest rates across their suite of investment products. Despite this, more borrowers are choosing variable rate home loans over fixed rate mortgages.”</span></p>
<p><span>Mr Flavell said the last time fixed rate demand was this low was back in January 2013.</span></p>
<p><span>“It has been 31 months - or almost three years – since fixed rate demand was this low. Across Australia, fixed rate demand was lowest in Victoria, with this type of product accounting for just 11.66% of all loans written throughout August,” he said.</span></p>
<p><span>“Western Australia and South Australia weren’t far behind, with fixed rates accounting for 14.16% and 14.59% of all loans written in both states respectively."</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Of the variable rate loans on offer, ongoing discount products once again proved the most popular with borrowers, with this type of product making up 48.38% of all loans written in August.</span></p>
<p><span>“With rates sitting at historically low levels, it is fair to say that regardless of whether a borrower chooses a fixed rate or variable rate home loan, they are going to secure a competitive rate,” Mr Flavell said.</span></p>
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