<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.</p>

<p>Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.</p>

<p>"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;</p>

<p>The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.</p>

<p>ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

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

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


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

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


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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


The apartment price gap drawing Sydney buyers west

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


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

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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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>
<p style="line-height: 1.3em;"><a href="/images/2015/09/24/Screen%20Shot%202015-09-24%20at%203.57.41%20PM.png" target="_blank">Click to enlarge</a></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><img src="/images/2015/09/15/HF1.jpg" alt=""></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><a href="/images/2015/09/15/hf5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div>
<div><strong><span style="text-decoration: underline;">Stamp</span></strong></div>
<div> </div>
<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>
<div> </div>
<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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<div><img src="/images/2015/09/15/HF4.jpg" alt=""></div>
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<div>
<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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<div><img src="/images/2015/09/15/HF2.jpg" alt=""></div>
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<div>
<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>
<div> </div>
<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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