Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<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/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Mortgages

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After the RBA dropped the official cash rate to 2.25%, at the first Tuesday board meeting of 2015, smart borrowers could now possibly more than triple their rate cut by refinancing.
Mozo, the comparison website, gave the<a href="https://mozo.com.au/family-finances/how-to-triple-your-rba-rate-cut?utm_medium=email&amp;utm_campaign=February+Moneyzone+-+Main+List&amp;utm_content=February+Moneyzone+-+Main+List+Version+B+CID_6cb09ef2db5c7c9d5913b8aee4595003&amp;utm_source=MoneyZone&amp;utm_term=How%20to%20Triple%20your%20RBA%20Rate%20Cut" target="_blank"> scenario</a> using a $500,000 home loan over 25 years of dropping the variable home loan from 5.25% to 5%, where typically monthly home loan repayments would be reduced by just $73.
By comparison, Mozo suggests that if borrowers switched to their <a href="https://mozo.com.au/mystery-bank-deal?placement=home-loans-tile" target="_blank" title="https://mozo.com.au/mystery-bank-deal?placement=home-loans-tile">Mystery Bank offer</a> at 4.34% (4.37% comparison rate), then the monthly home loan repayments would be reduced by $262.
Mozo suggest that means around $78,600 saved over the life of the loan.
It urged borrowers to refinance by comparing the home loan market especially because lenders are aggressively pricing.
They gave an example<a href="https://mozo.com.au/blog/2014/09/mozos-big-4-mystery-shop-much-haggle-home-loan/" target="_blank" title="https://mozo.com.au/blog/2014/09/mozos-big-4-mystery-shop-much-haggle-home-loan/"> last year </a>looking for a $500,000 home loan, where 1.16% off the standard variable rate loan was secured, by mentioning lower rates from other providers.
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jchancellor-FAypfDUnLy

Maximising the RBA February rate cut: Mozo

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Today's rate cut won't be the only one for 2015, according to AMP Capital head of investment strategy and chief economist Shane Oliver.
<img src="/images/2015/02/03/Picture%2022.png" alt="">
The Reserve Bank today cut the official cash rate by 25 basis points, from <a href="/expert-insights/finance/rba-cuts-rates-to-record-2-25-low-at-february-2015-meeting">2.5% to 2.25%</a>.
Shane Oliver, predicting another rate cut to <a href="https://www.propertyobserver.com.au/https://twitter.com/ShaneOliverAMP/status/562475605979979777" target="_blank">2% around April</a>, says he believes the Australian dollar should sit at around US$0.75.
Shortly after the Reserve Bank's announcement, it was at US$0.77.
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jrichardson-uRX5hFdKfN

Tweet of the day: More rate cuts to come, predicts Shane Oliver

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A woman charged over alleged involvement in one of Australia’s largest home loan frauds faced court in Melbourne last week on charges linked to an <a href="https://www.smartcompany.com.au/legal/45172-arrests-follows-after-12-lenders-caught-in-alleged-100-million-myra-home-loan-fraud" target="_blank">alleged $110 million home loan fraud</a>.
Manija Zayee was charged after a lengthy investigation by the Australian Securities and Investments Commission into the activities of her mortgage broker partner Najam Shah and colleague Aizaz Hassan.
The fraud allegedly involved using fake documents to apply for at least 350 loans with numerous lenders, including the Commonwealth Bank, Westpac, ANZ, National Australia Bank and others.
ASIC alleges they submitted bank statements, pay slips, citizenship certificates and statutory declarations on behalf of clients from the now-defunct suburban Footscray company Myra Financial Services, where they worked, for loan applications between 2008 and 2011.
The company was registered in Zayee’s name.
Zayee has been charged with obtaining a financial advantage by deception by submitting false documents to secure a $136,000 loan from the Bank of Queensland.
Siobhan Hayden, chief executive of the Mortgage &amp; Finance Association of Australia (MFAA), said the MFAA only became aware of the fraud when Shah and Hassan were arrested.
Shah was a mortgage broker and previously registered with the MFAA but Hassan only acted as an introducer. 
“It appears that the fraud has been perpetrated around validating deposits and employment credentials,” Hayden says. 
“I’m keen like a lot of people to understand how it has been done, they have obviously used quite a sophisticated system. I would have to assume here the consumers were well aware of what is being structured for them so they could secure the loan.”
Hayden says from her discussion with the lenders involved she understands not one loan is in fault with only a few in slight arrears.
“$110 million has not been lost, it has been fraudulently acquired but the banks are still processing it,” she says.
Hayden says the MFAA did not have to cancel Shah’s registration as it had already expired two months prior to the exposure of the alleged fraud. 
“You can’t mitigate when someone chooses to be fraudulent,” she says.
Hayden says people should still have confidence in the integrity of mortgage brokers.
“Nearly 52% of loans introduced to lenders today are by brokers, so consumer confidence in brokers is still high,” she says.
“If any consumer ever feels uncomfortable about services provided they should contact the MFAA to raise a concern.”
ASIC has come under fire for its investigation of the alleged fraud after it was revealed Hassan was capable of writing loans until his accreditation was stopped on January 6, 2015. 
Hassan appeared before a bail justice on January 2, 2015. 
A spokesperson for ASIC defended the regulators role noting that the investigation into Myra Financial Services had been conducted over several years.
"It has necessarily been a long, complex and at times extremely sensitive operation,” the spokesperson said. 
"There are some important parts of the investigation which we are not able to divulge.”
The spokesperson said ASIC does not as a rule flag an impending arrest to an employer or to other related parties.
"To do so would increase the risk of the person of interest being tipped off, even if this was inadvertent,” the spokesperson said. 
"It would potentially place the employer in a compromised position. For example, the employer may wish to suddenly treat the employee differently – perhaps even sack them.”
A committal hearing for Zayee has been set for 17 April, the same date Shah and Hassan will next appear in court.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Mortgage broker faces court over alleged Myra Financial Services $110 million fraud

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The probability of the Reserve Bank of Australia lowering the cash rate at its February board meeting increased, given the opening Herald Sun paragraph of Terry McCrann’s column late on Wednesday night that declared the Reserve Bank “will almost certainly cut its rate at its first meeting back for next Tuesday”. 
Australian Financial Review coloumnist Christopher Joye noted this morning that traders reacted almost instantly and prospects of a February and/or March rate cut were revived.
Joye does not personally describe the probability of a February easing as “almost certain”.
Joye's best guess is it a still high 60% plus chance. And if they don’t go in February, they have laid the groundwork for doing so in March.
But Joye does note McCrann's past predictions immediately before board meetings used to be lethal, after he’d got the good oil from senior staff. But Joye says the RBA link isn't now as strong with McCrann.
McCrann has dubbed this the year of the mousetrap. 
"Beware of getting caught, snatching for seemingly easy succulent cheese," he warned.
"This year was supposed to the year where the ‘experts’ could build their predictions — for share prices, for property, for interest rates, for the critically important value of the Aussie dollar — around one foundational certainty.
"This was that the US economy was picking up steam; so US interest rates would start going up after being at zero for nearly six extraordinary years, and would take the US dollar with them. Hullo an Aussie dollar heading for US70c, or even lower.
"But the year kicked off with a big event that nobody, and I mean nobody, predicted — the Swiss abandoning their attempt to keep the Swiss franc fixed against the euro.
"That’s combined with the almost as unpredicted plunge in the price of oil. 
"At the start of every year, it’s worth repeating that the future is unpredictable. 
"The greatest danger this year is thinking — and then acting on, or taking the advice of those ‘experts’ — as if it’s less unpredictable. 
"In fact it’s probably more unpredictable than normal; and we are going to get a taste of that at the Reserve Bank’s meeting on Tuesday week.
"The RBA spent all of last year defying, first, confident calls that it was going to hike; and then demands that in fact it slash rates.
"It left rates, sensibly, calmly, unchanged.
"Now there’s absolutely no chance of a rate hike.
"The question is whether it signals it might cut; while a really low inflation number would put a rate cut smack on the table.
"What is absolutely certain is that the key language in RBA governor Glenn Stevens’s post-meeting statement will change.
"That would obviously be the case if he’s announcing a 25-point cut, but it would change to “signalling a future cut” even in the now unlikely case the rate was left unchanged," McCrann advised his readers.
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Terry McCrann says February RBA rate cut almost certain

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Another quarter or half percent interest rate cut won't make the property market hotter, John Symond thinks.
The founder of Aussie Home Loans noted parts of the real estate market had cooled.
"Certainly the lower rates go the more affordable it is for borrowers, but I think we have rates at the moment where another quarter or half percent rate cut I don't think will push the property market to be hotter."
He envisaged rates would be cut because of the non-housing sector which needs "every bit of help they can get."
But with falling oil prices a boost to mum and dad wallets, Symond reckons the Reserve Bank might wait on the first cut in 2015.
"They might wait a little bit longer to drop than next week," he told Ross Greenwood on 2GB Money News.
"The political situation is not helping the economy," he said.
<a href="/expert-insights/finance/john-symond-expects-five-year-fixed-interest-rates-to-dip-to-4-75">Late last year</a> John Symond tipped five-year fixed loans were heading to 4.75%.
His comments came before today's CPI data which was was mixed, with a further slowing in headline inflation but some pick up in underlying measures.
Headline inflation printed at 0.2% q/q and 1.7% y/y, the weakest annual rate since Q2 2012.
At the component level, ANZ said the largest downside surprises were for fruit and vegetables, as well as retailing components such as clothing &amp; footwear and household furnishings and audio, visual and computing equipment. 
"Indeed, tradables measures were very weak, confirming our view that global disinflationary trends and weak demand conditions are partially offsetting the impact of pass-through from the weaker currency."
Meanwhile ANZ Banking Group chief executive Mike Smith has suggested the Reserve Bank of Australia should resist calls to cut official interest rates saying he was optimistic about Australia’s outlook – particularly with a falling dollar making exporters more competitive.
“If I was the central bank I would wait and see how this plays out because if the currency can take most of the shock, it’s a much better way to deal with it,” he said in remarks ­published by the bank on its <a href="https://bluenotes.anz.com/posts/2015/01/no-need-for-rate-cuts-mike-smith/" target="_blank">Bluenotes website</a>.
Speaking exclusively to BlueNotes on video, Smith said while plunging commodity prices were having an effect, the declining Australian dollar was mitigating some of the damage. “And of course it does leave you the option of monetary policy later.”
“I still see Australia as relatively well placed. I’m still not too worried by the Australian economy.”
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Rate cut won't reignite property market: John Symond

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Household debt has increased to an all-time high - at a multiple of 1.7 times annualised household disposable income, the ANZ Bank has noted.
But household debt levels remain ‘comfortable’ given growth in household income, interest rate levels and household assets, says bank researchers, David Cannington and Katie Hill.
Their ANZ Research paper - headed Household Debt: A house of bricks or straw - concludes there is little sign of financial distress among households.
"Mortgage delinquencies are well below 0.5% of total mortgages and have been trending lower for most of the past year," Cannington and Hill wrote.
<img src="/images/2015/01/21/anz-jan-21-five.jpg" alt="">
 <img src="/images/2015/01/21/anz-jan-21-six.jpg" alt="">
"Despite higher levels of debt, households’ ability to service their debt has improved markedly, primarily due to lower interest rates, with household interest payments as a proportion of income below long-run average levels," the report said.
<img src="/images/2015/01/21/anz-jan-21-one.jpg" alt="">
But notwithstanding the current manageable levels of household debt and the current forecast of steady expansion in Australian medium-term economic growth, they suggest under certain economic stress conditions households could see a sharp increase in debt stress, primarily through mortgage default.
"Recent RBA research is consistent with our view that the most likely driver of mortgage defaults would be negative housing equity combined with a sharp increase in debt service difficulty, likely due to broad-based job losses and higher interest rates," Cannington and Hill wrote.
<img src="/images/2015/01/21/anz-jan-21-two.jpg" alt="">
The report noted interest rates are a key variable driver of debt servicing ratios, and have been more volatile since the Global Financial Crisis, particularly to the downside. 
"While we don’t expect interest rates to rise sharply in the coming years, and we have forecast 50bps of rate cuts in 2015 reflecting a subdued economic growth profile, we have modelled the impact of various monetary policy scenarios on the debt servicing capacity of households. 
"Our general view is that, assuming no significant improvement in labour market conditions, debt servicing ratios around 10-11% would start to put pressure on mortgage delinquencies.
"However, interest rates and monetary policy do not adjust completely independently of economic and labour market conditions. In all likelihood, if interest rates were increasing it would be under a scenario of improved labour market conditions and high income growth. However, for the purposes of testing household leverage vulnerability to interest rates, all interest rate scenarios assumed the same income and credit growth assumptions, namely:
<ul>
<li>"Continued weakness in disposable income growth with growth gradually improving to 5% by 2017 and stabilising thereafter; and</li>
<li>"Annual household credit growth between 5-7%.</li>
</ul>
"The baseline scenario in the model assumes our current monetary policy view of 25bp cuts in March and May 2015, before the RBA begins a 100bp hiking cycle in 2016. Modelling suggests our baseline and baseline +50bps scenarios would see debt servicing ratios peak at manageable levels (8.6% and 9.4% respectively in 2017).
"It is only once the cash rate exceeded our baseline by 150bps (taking it to maximum of 4.5% in December quarter 2016) that the debt servicing ratio would be pushed beyond 10%. 
"There are good reasons to expect households will be able to absorb higher debt servicing ratios more easily than in previous hiking cycles. 
"Our recent research indicates households have opted to maintain elevated repayment rates in recent years and this behaviour has driven excess mortgage repayment rates to historical highs.
"In addition to higher mortgage repayments, balances in mortgage offset and redraw facilities have also increased. 
"In fact, the RBA estimates that balances in mortgage offset and redraw facilities has increased to around 15 per cent of outstanding mortgage balances. 
"As deposits in offset accounts are not officially measured as negative mortgage debt, standard statistical measures of household debt don’t fully reflect the improvement in household balance sheets, particularly in recent years. 
"This more conservative household financial behaviour could provide a significant serviceability buffer in the next hiking cycle."
<img src="/images/2015/01/21/anz-jan-21-four.jpg" alt="">
The report noted household’s inability to meet mortgage repayments would most likely be caused by an adverse shock to unemployment.
The research paper also provided some useful quantitative rules to assess the probability of mortgage distress. These include: 
<ul>
<li>The likelihood of missing a mortgage payment increases with the loan-to- valuation (LVR) ratio at origination, particularly high at an LVR ratio above 90%. </li>
<li>Households with high debt servicing ratios are more likely to miss a mortgage payment. In particular, household debt servicing ratios (including principal repayments) of over 50% were 10ppts more likely to miss mortgage payments than households with debt servicing ratios under 30%. </li>
<li>Households with a full-time employed primary income earner are 8ppts less likely to miss a mortgage payment than households with a primary earner that is not in the labour market. </li>
<li>
A greater proportion of households that miss payments have both high gearing and a high debt servicing ratio compared to households that have either high gearing or a high debt servicing ratio. 
</li>
<li>Loans that are repaid quickly ahead of schedule are less likely to miss payments. Households that are making repayments ahead of schedule are 4ppts less likely to miss a mortgage payment, compared to households paying on time.</li>
</ul>
Source: RBA
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10% debt servicing ratio would trigger mortgage delinquencies: ANZ

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The price growth for Australian houses will slow in 2015 to about 4%, Fitch Ratings has forecast.
Its Global Housing and Mortgage Outlook says an “affordability ceiling”, plus a potential interest rate rise in the medium term, will moderate the recent price growth.
Perth prices will not move, but prices in Sydney and Melbourne are forecast to rise between 3% and 4%.
House prices in Australian cities rose 8.9% in the 12 months to October 2014, it noted.
"However, the rate of growth has been slowing since it peaked at 11.5% in April," the report added.
 Price growth has been driven by continued record low interest rates and increasing investor demand in the Sydney and Melbourne markets. Annual growth rates to date have reflected a two- tiered market with the prices in Australia’s two largest cities outstripping other capital cities’ growth. 
Fitch expects that house price growth will moderate to around 4% in Sydney and Melbourne as rental yields become compressed and the prospect of further capital growth lessens. 
"Perth prices (3.4% annual) are expected to flatten as mining investment slows and prices in the other capital cities are expected to continue to grow at a moderate pace."
Fitch Australia’s managing director of structured finance, Ben McCarthy, said housing affordability had reached its peak in Australia.
“People just can’t afford to pay much more for housing,” he told the Australian Financial Review.
“At 4% growth, prices will still rise higher than people’s incomes.”
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Capital cities which have experienced strong house price growth in the past 24 months (Sydney 26.2%, Melbourne 17.4%) will continue to experience affordability pressure, he noted in the report.
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Australian property is among the most expensive in the world on almost all metrics, the report says.
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Housing debt as a percentage of disposable income was 137% in 2Q14, which has been increasing steadily from 130% since 2Q12. 
Fitch expects lending net volumes to continue to grow as house prices increase at a moderate pace. Investment loan approvals are expected to continue to represent 50% of new lending (excluding. refinance loans) as investors compete with owner occupiers. 
Existing borrowers are expected to be cautious with higher-than-average household savings being maintained. 
It noted mortgage prepayments have been gradually increasing since the market low of 17.2% observed in March 2011 to 21.3% as at June 2014, according to the Fitch Dinkum Prime RMBS CPR. 
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Nothing for Perth, but Fitch sees 4% price growth for Australia houses in 2015

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ME Bank has cut its five-year fixed rate home loan by 25 basis points to 4.69% per annum.
Their three-year fixed rate loan is at a record low of 4.59%, which brings both their three-year and five-year offerings to the cheapest on the market, according to ME Bank CEO Jamie McPhee.
“The cost at which ME Bank borrows in the fixed rate market has been falling. In turn, we can pass on these savings to customers,” he said.
“Unlike the majors, we’re keen to pass these opportunities on to customers and continue our aggressive position in the home loan market.”
McPhee said that, as well as their competitive rates, they recently made the decision to extend home loan offers to all borrowers, both members and non-members of Industry Super Funds and unions.
APRA statistics saw ME Bank boosting investor lending by 39.1% and owner occupied lending by 11.5% during the 12 months to 30 November 2014.
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ME Bank cuts five-year fixed rate to record low

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The November 2014 housing finance data from the Australian Bureau of Statistics (ABS) indicates that demand for mortgages is starting to wane. 
We would expect that this trend will continue over the coming year as APRA crack down on higher risk mortgage lending and focus on curtailing growth to the investment segment of the market.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-11.jpg" rel="wp-prettyPhoto[g4159]"><img class="aligncenter size-full wp-image-4160" src="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-11.jpg" alt="Chart 1" width="500" height="184"></a>
 
Source: CoreLogic RP Data, ABS
In November 2014, the total value of housing finance commitments fell by -1.0%.  The total value of owner occupier housing finance commitments fell by -0.2% with owner occupier refinance commitments 0.1% higher while owner occupier new loan commitments fell by -0.3%. 
The investor segment of the market recorded a sharp fall in lending over the month down -2.2% following rises over the previous six months.  Year-on-year housing finance commitments have increased by 7.3% which is their slowest rate of year-on-year growth since January 2013. 
The year on year increase in the value of housing finance commitments has decelerated from a peak of 26.6% in December 2013.  Owner occupier refinance commitments rose 18.2%, owner occupier new loan commitments fell -1.8% and investment finance commitments rose 13.0%. 
Although lending to the housing investment segment is up 13.0% over the year, this represents the lowest year-on-year growth rate since December 2012.
The first chart above shows the total value of housing finance commitments over time broken down by owner occupier refinances, owner occupier new loans and investors. 
While lending for home refinance and investment purposes have continued to trend higher over the past year there has been clear weakness in the new loans to owner occupiers segment.  Investor commitments fell -2.2% in November and with APRA trying to slow the growth in lending to investors we would expect the investment segment will follow the lead of the owner occupier new loan segment over the coming year with growth continuing to slow.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-21.jpg" rel="wp-prettyPhoto[g4159]"><img class="aligncenter size-full wp-image-4161" src="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-21.jpg" alt="Chart 2" width="500" height="182"></a>
Source: CoreLogic RP Data, ABS
The total value of housing finance commitments in November 2014 was recorded at $29.0 billion.  Over the month there was $11.8 billion in commitments to owner occupier new loans (40.5%), $5.5 billion in owner occupier refinances (19.1%) and $11.7 billion in investment loans (40.4%).
The proportion of lending to investors eased over the month however, if refinances are excluded the proportion of lending to this segment is still extremely high, accounting for 49.9% of lending commitments for housing.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-31.jpg" rel="wp-prettyPhoto[g4159]"><img class="aligncenter size-full wp-image-4162" src="https://blog.corelogic.com.au/wp-content/uploads/2015/01/Chart-31.jpg" alt="Chart 3" width="500" height="183"></a>
Source: CoreLogic RP Data, ABS
The third chart shows the rolling annual change in housing finance commitments (excluding refinances) versus the rolling annual change in combined capital city home values. 
Refinances are excluded because the data is used as a proxy for demand for new borrowings to purchase a home.  As you can see there is a correlation between growth in housing finance commitments slowing and growth in home values slowing. 
Currently we are seeing growth in both housing finance commitments and home values trending lower and we expect that this trend will continue over the coming year.
Demand for mortgages remains strong despite the fact that it has started to ease over recent months.  With APRA writing to Australian banks, building societies and credit unions late last year reinforcing sound residential mortgage practices we would expect a further slowdown in mortgage demand in 2015. 
Consequently we would also anticipate that this will result in a slowdown in the rate of growth in home values as demand eases.  We have already seen demand from the owner occupier market segment slow over the past year.  
With APRA advising Australia’s banking sector that they will be watching closely those that grow their investor mortgage book by materially more than 10% year on year, the investor segment may well follow suit in 2015.
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Demand for mortgages waning - home value growth will not be far behind

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Australians with a mortgage of $489,300 or more will see themselves spending $1 million or over for the life of their 30 year loan, according to Finder’s research.
The statistic is calculated on an average variable interest rate of 5.5%.
In a situation where the mortgage is 80% of the property value, then a property bought for $611,625 or more will end up costing more than $1 million.
Michelle Hutchison, money expert at Finder, said that borrowers are not looking down the track to see how much they end up spending when they look to see if they can afford a home loan.
“While it’s likely that your home will increase in value over a 30-year loan term, it might not compensate the cost of a home loan as the money you end up spending can be greatly increased if you have a small deposit and don’t shop around for a good value deal,” she said.
“This research was based on the average variable rate of about 5.5% but borrowers need to remember that there’s a big difference between what lenders are offering, which can mean bigger costs for a home if you’re not careful.”
She notes that the lowest ongoing variable rate they are current recording is 4.39% from Heritage Bank, or 1.11% lower than the average variable rate.
“Take advantage of the online tools and comparisons of different home loans to help you find the best value deals,” she said.
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