Holiday home buyers who have long gravitated to Queenstown’s alpine setting are increasingly looking for low-maintenance apartments that allow them to lock up and leave, while still generating income when they’re away.

For Wendy, who had spent years visiting the Queenstown and Arrowtown region, <a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>’s Mountain Oak Apartments provided the opportunity to formalise what had previously been a recurring holiday pattern.

“We always had Queenstown in the back of our minds to buy something there as a holiday home,” she says. “We love the Queenstown and Arrowtown area.”

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/658d4f_48c3ec1ae5df4a2cab7d23c07c7f51b3~mv2.jpg?VersionId=27K8oQ4ExDN8Yu70VHDa9Olq59XU36m3" />

Time spent visiting her sister-in-law, who owns in Arrowtown, along with regular stays at Millbrook Resort, had already shaped a strong personal connection to the region.&nbsp;

Rather than approaching the purchase purely as an investment play, Wendy’s starting point was lifestyle.

“We were more thinking about ourselves and where we could stay, and then the rental aspect was second.”

Mountain Oak Apartments, located within the masterplanned Remarkables Park precinct in Frankton, aligned with that thinking. The ability to secure the apartment with a deposit and settle on completion made the timing work.

“The fact that we could put a deposit down with the balance on completion was a bonus for us,” she explains.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Wendy selected a two-bedroom, two-bathroom penthouse, a configuration that supports both private use and guest flexibility.

“The two-bedroom, two-bathroom configuration appealed from both a rental viewpoint and for the ability to have friends stay while we are there,” she says.

Across the development, two-bedroom apartments range from 64sqm to 78sqm, with two-bedroom plus flexi options from 71sqm to 75sqm, each with an allocated car park. The flexi layouts introduce an additional space suited to work or hobbies, reflecting demand from buyers who split their time between leisure and remote work.

Apartments include underfloor heating in bathrooms, heat pumps to living areas, and joinery positioned to maximise natural light and mountain outlooks. The Remarkables Park precinct is known for its extended winter sunshine hours, water frontage and open views toward The Remarkables.&nbsp;

Units come in light and dark interior colour schemes.

<img alt="Mountain Oak Apartments draws holiday home buyers to Queenstown" data-entity-type="file" data-entity-uuid="fd685a22-3b95-43a1-87cb-48fdd42bb4ba" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_f9f89107c2704ebbbe5a6b36da508cb3~mv2.jpg?VersionId=MigFIEm6b.mrANANwxSmwHvC4RdJUuyR" />

While lifestyle was the primary driver, the fundamentals of the Queenstown market added reassurance.&nbsp;

“Proximity to the airport and tourism being the main attraction all year round,” Wendy says, when asked what stood out from an investment perspective.

Mountain Oak sits just eight kilometres from Queenstown’s CBD and around a two-minute drive from Queenstown Airport.&nbsp;

For Wendy, that airport proximity carries practical value.

“The airport proximity is a bonus, we think that being so close will be an attraction for the convenience side.”

Residents are also a short drive from Coronet Peak, Jack’s Point Golf Course, New World Supermarket, Five Mile Shopping Centre, and the dining, medical, gym, cinema and library amenities within the town centre, as well as the seasonal Remarkables Market.

Importantly, the purchase does not lock owners into a single use. Mountain Oak offers the flexibility to opt for short-term visitor accommodation or longer-term residential rental management, with 365-day visitor accommodation consent in place. Owners can utilise Safari Group’s 24/7 on-site management service or appoint their own provider, and do not need to decide on a strategy immediately.

“It was a bonus that we can rent it out as well as use it for ourselves,” she says.

Additional buying options, including furniture packages and storage units available for purchase within the building, further support a lock-and-leave model suited to interstate and overseas owners.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Mountain Oak Apartments comprises 141 residences, ranging from one-bedroom configurations through to larger apartments and penthouses. One-bedroom apartments are currently priced from NZ$639,000, with three-bedroom options from NZ$1,299,000.

With 365-day visitor accommodation consent, the development is structured to respond to Queenstown’s established four-season tourism economy, spanning winter ski traffic and summer hiking, cycling, golf and lake-based activity.

Although Wendy acknowledges the strength of rental demand, her approach remains long term.

“We’re not planning to sell it anytime soon, so we are keen to hang on to it, but the passive income will be a bonus.”

Confidence in the developer also influenced her decision. Before proceeding, Wendy sought feedback within the local building community.

“We asked around and Safari Group had a good reputation,” she says.

Safari Group has delivered more than 2,000 hotel units and residential apartments across over 18 developments nationwide, with more than 25 years’ experience in the sector.

With completion anticipated by mid-2027, Mountain Oak is attracting a cross-section of buyers, from yield-focused investors to lifestyle purchasers seeking a foothold in one of New Zealand’s most tightly held alpine markets.

For Wendy, it represents both a future holiday base and a long-term asset within Queenstown’s year-round tourism economy.

Joel Robinson

How Mountain Oak Apartments draws holiday home buyers to Queenstown

Eduard Litver's Capitel Group is seeking to redevelop Chatswood's Mandarin Centre in the heart of the burgeoning suburb.

Capitel Group, in a joint venture with Metis Group, has filed a State Significant Development Application (SSDA) to demolish the Mandarin Centre and construct a 32-storey tower designed by Skidmore, Owings &amp; Merrill (SOM) with 325 apartments.

The 3,524 sqm site at 61A-65 Albert Avenue will also home extensive retail amenity, both at street-level and across a four-level podium.

<img alt="First look: Metis and Capitel unveil $1.2bn+ plan to redevelop Chatswood’s Mandarin Centre" data-entity-type="file" data-entity-uuid="905976ea-08cd-409f-8a4c-33a3fb8bf351" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1771923441002.png?VersionId=f_xI2ejpxQvEm4fPqGji01RY9_AWVY6O" />

In its early stage Design Report submitted to the NSW Government's Housing Delivery Authority, SOM describes the ambition for the project as one that “aims to revitalise and reactivate an important corner of the Chatswood CBD.”

The architects note that the existing shopping centre “has a lack of vertical connection between its five levels of retail and a cumbersome pedestrian access from the street to the second-level transit connection,” framing the redevelopment as an opportunity to reconfigure circulation and better integrate with surrounding transport infrastructure.

The design adopts a single tower configuration, shaped through early testing to respond to neighbouring buildings and key public spaces.

Retail activation is concentrated at ground and lower podium levels, with a focus on food and beverage, lifestyle and wellness tenancies. The intent is to create a more permeable ground plane and improve connections between Albert Avenue, Victor Street and the Chatswood transport interchange, located within walking distance of the site.

<img alt="First look: Metis and Capitel unveil $1.2bn+ plan to redevelop Chatswood’s Mandarin Centre" data-entity-type="file" data-entity-uuid="b1e0c8cb-ee9b-41c1-97ac-0455c043b9e7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1771923442914.png?VersionId=y.Kbo.9bzLIbOabeygYts8Uf9imI.Dqh" />

The site occupies a prominent position on the southern edge of the Chatswood CBD core, bounded by Albert Avenue and Victor Street. It sits near the rail and metro interchange and within close proximity to Chatswood Chase, Westfield Chatswood, Chatswood Oval and a range of commercial office towers and residential buildings.

Chatswood has been one, and continues to be, of the most popular suburbs for developers in recent years. The most recent tower to launch is Hyecorp's Celine on Archer Street, which followed The Anderson by Changfa and Huirong.

Soon to launch is Coronation's Archer &amp; Albert nearby the new proposal.

Chatswood boom continues with Capitel and Metis’s $1.2 billion Mandarin Centre redevelopment

Apartment development applications continue to tally up in Rose Bay following the NSW Gov's 2025 update to the Low and Mid-Rise Housing Policy.

&nbsp;

Some $200 million worth of developments were filed in the space of four weeks at the back end of last year, with the likes of Fyve, HSN, Luxcon and Fortis all seeking to creating new apartment buildings.

The latest plans are for an amalgamated 3,105 sqm site across Conway Avenue, Fernleigh Avenue, and Carlisle Street. Developer Mathieson Property is planning <a href="https://www.apartments.com.au/new-apartments/dian-2-6-conway-avenue-rose-bay-nsw-2029">Dian</a>, 70 apartments across a new eight-storey building, perched on a ridgeline within walking distance of Rose Bay Town Centre.

The State Significant Development Application (SSDA), includes one-, two-, three- and four-bedroom configurations. Over 15 per cent will be dedicated as affordable, as per the NSW Government's push for affordable housing. The 17 apartments will be managed by a community housing provider for 15 years following completion of the building.

<img alt="First Look: Mathieson Property unveils eight-storey infill housing proposal ‘Dian’ in Rose Bay" data-entity-type="file" data-entity-uuid="f99c21d9-e69d-4a23-ae35-3244cfa0b4ae" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Rose%20Bay%20site_0.png?VersionId=67KSZfecJ3fvn1ewo9xxKrneRT.Nsjwd" />

MHNDU has designed the building around three central cores, with lower-level apartments arranged to maximise corner balconies and cross-ventilation. Upper levels are configured with dual north–south aspects to capture harbour views and solar access.

Private open space is a key feature of the scheme, with generous balconies and terraces throughout. Five ground-floor apartments would include private pools, while one upper-level residence will feature a rooftop terrace and pool. A communal room and adjoining landscaped outdoor terraces provide shared open space for residents.

<img alt="First Look: Mathieson Property unveils eight-storey infill housing proposal ‘Dian’ in Rose Bay" data-entity-type="file" data-entity-uuid="dd2e275f-c270-4eb1-9a02-2b573b8eb540" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Rose%20Bay%20front_0.png?VersionId=Us5jNEG6iLFLLMfQSzVBVdILYobBj.g9" />

The site sits around 365 metres walking distance of Rose Bay Town Centre and around 312 metres from regular bus services on New South Head Road, meeting the accessible area criteria under the Housing SEPP.

In early 2025, the NSW Government implemented significant changes to its Low and Mid-Rise Housing Policy, altering planning controls to allow greater density for new apartment projects within an 800-metre walking distance of stations and town centres in the&nbsp;<a href="https://www.apartments.com.au/developments/woollahra-nsw-2025">Woollahra</a>&nbsp;Local Government Area, overriding existing local controls. Buildings are now permitted to rise up to six storeys within 400 metres of a station or centre, or eight storeys where affordable housing is incorporated, and up to four storeys within the 401 to 800 metre radius, which can increase to six storeys with affordable housing.

Mathieson Property unveils Dian Rose Bay apartment development

Lower North Shore developer <a href="https://www.apartments.com.au/developers/hyecorp-property-group">Hyecorp</a> is preparing to launch <a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine</a>, its new apartment development in Chatswood.

Set within a blue ribbon location on Archer Street, Celine will rise on a quiet, tree-lined enclave on the edge of the South Chatswood Heritage Conservation Area, a short walk from the connectivity which Chatswood is famous for.

Celine will deliver 122 one, two, three, and four-bedroom residences, designed to accommodate a broad range of buyers, from owner-occupiers to investors.

[smartcode_project:default project_id=149594 project_image_fid=362610]

Designed by&nbsp;<a href="https://www.apartments.com.au/architects/fuse-architecture-0">Fuse Architects</a>, the 29-storey tower has been shaped to respond to its Archer Street setting, with a defined podium and slender upper levels.&nbsp;

The building incorporates a two-storey residential lobby at the corner, double-height retail fronting Bertram Street, food and beverage tenancies along a through-site link, and two levels of commercial office space.&nbsp;

A landscaped pedestrian connection between Archer and Bertram streets will provide a publicly accessible link through the site, extending activity at ground level beyond the building footprint.

[smartcode_project:default project_id=149594 project_image_fid=362606]

Inside, Hyecorp is emphasising scale and flexibility. Most residences will incorporate multipurpose rooms, allowing buyers to configure additional living, study or guest space within their floorplan.&nbsp;

Kitchens have been designed with proportions more commonly associated with standalone homes, complemented by Gaggenau and Miele appliances, integrated refrigeration, Miele laundry appliances, Taj Mahal stone and bronze tapware.&nbsp;

Buyers will also have the option to tailor aspects of their home through the developer’s “Live Your Way” personalisation service.

Resident amenity will include an outdoor pool, gym and sauna, as well as barbecue and lounge areas designed for shared use. Upper levels are oriented to capture eastern outlooks towards the Sydney CBD and surrounding greenery.

[smartcode_project:default project_id=149594 project_image_fid=362633]

The location places future residents within 800 metres of Chatswood Interchange, providing access to metro and rail services, and within walking distance of Westfield, Chatswood Chase and the Chatswood Concourse. Parks including Chatswood Park and Beauchamp Park are nearby, along with a cluster of schools and private hospitals.

Celine continues Hyecorp’s focus on the Lower North Shore. The Australian, family-owned developer has been operating locally for more than 30 years, with recent projects including Audrey in St Leonards, now nearing completion, and Juliet in Roseville. With registrations expected to open soon, Celine represents the group’s latest addition to the Chatswood apartment market.

[smartcode_project_cta:default project_id=149594]

Hyecorp unveils Celine, a striking new apartment tower in the heart of Chatswood

International development company <a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> has kicked off construction of the $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a>, one of the highest value developments to get underway on the Gold Coast in more than a decade.

Located on a 1.15ha site stretching from Surfers Paradise Boulevard to Ferny Avenue, Paradiso Place, when completed, will deliver 845 residences across three residential towers. &nbsp;

Paradiso Place has been several years in planning by SPG, which has now pushed the green light on construction to meet pent-up demand from investors and owner occupiers.

&nbsp;

[smartcode_project:default project_id=106566 project_image_fid=185858]

The move follows minor amendments to the original design to cater to buyer demand, including the provision of more premium residential amenity, including private dining, lounge and events spaces for residents to entertain guests.

The three towers, comprising 41, 40 and 44 levels, will bring to the market 845 apartments with each tower boasting its own podium level interconnected skybridge to create a unique elevated ‘beachside village’ for residents.

[smartcode_project:default project_id=106566 project_image_fid=362500]

The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed development will bring a broad range of residences to the market, most offering ocean views and all enjoying five-star hotel amenities with world-class facilities and the convenience ground level retail precinct.

&nbsp;

Construction of Paradiso Place has been made possible by SPG’s newly established SPG Built division partnered with experienced project management group Eastview Australia, a company that has supported the development of a raft of major projects on the Gold Coast over the past two decades.

[smartcode_project:default project_id=106566 project_image_fid=362499]

“It’s a very exciting time for Paradiso Place as we start construction,” said SPG Land Chairman David Wang.

“We have spent our energy refreshing design and assembling the best team and waiting for what we believe is the right time to start construction on one of the most exciting mixed-use developments to proceed on the Gold Coast since Oracle in Broadbeach and Circle on Cavill in Surfers Paradise. &nbsp;

“The local and interstate downsizer market is getting stronger, and we see Paradiso Place as the right project for our times right now. Our company has the capacity to deliver large-scale projects, and we are thrilled to be bringing this vision to reality.”

&nbsp;

[smartcode_project:default project_id=106566 project_image_fid=185861]

SPG Invest, a company founded in Australia in 1998 with a focus on high-end real estate and premium hospitality assets, has delivered 56 projects in the Asia-Pacific region over the past twenty-five years, including The Peninsula Hotel Shanghai and the Global 188 twin-tower project in Suzhou and Cambridge Residences at Robina.

Paradiso Place will deliver a range of new apartments with two-, three- and four-bedroom layouts, as well as a collection of sub-penthouse and penthouse apartments across three levels. Prices start from $950,000.

[smartcode_project:default project_id=106566 project_image_fid=185852]

“We have a very strong vision for Paradiso Place – we are creating a unique beachside residential community where contemporary design &amp; architecture and luxury materials combine with five star residents’ amenities and the convenience of a premium retail precinct on the ground floor”, said SPG Land CEO Dr Ying Rao&nbsp;

“We are confident that the community will recognise that this is more than just another development. Paradiso Place will bring a much-needed retail precinct and lifestyle hub to northern Surfers Paradise with premium retail, lifestyle and food and beverage options,” Said Dr Rao&nbsp;

“The retail precinct is critical to enhancing the lifestyle amenity for residents and guests, so SPG will retain control of this precinct to curate a premium retail offering that will support this thriving new community.

“SPG will also retain short-term holiday letting to control premium and luxury outcomes in line with our vision.”

Construction of Stage 1 Paradiso Place is expected to be completed by end of 2029.

[smartcode_project_cta:default project_id=106566]

Construction commences on $1.5 billion Paradiso Place development in Surfers Paradise

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ANZ has today revealed it is cutting its variable package rates for new borrowers by between 0.35% and 0.90%, bringing its package rates into line for all loan amounts.  

Canstar’s research shows the average variable package rate from the major banks is 3.43% and ANZ now offers the lowest of the major banks’ variable package rate offers for owner occupiers at 2.99% (3.42% comparison rate).

The changes for owner occupiers paying principal and interest (80% LVR) are as follows: 

<img alt="" height="231" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/anz_rate_cut.jpg" width="741">

Canstar Group Executive, Financial Services, Steve Mickenbecker says “Today’s cut from ANZ is the first cut to a variable rate by one of the big four banks since September last year, as interest rate cuts have since been focused on fixed rates.”

“The decrease from ANZ is being passed on to new borrowers by way of increasing the discount applied to its standard variable rate and will not be passed on to existing borrowers. "

“ANZ now offers the lowest package rate among the major banks and it would not be surprising to see others moving down the same path."

[smartcode_project:default project_id=4939]

“ANZ is seeking to grow its share of low risk business, with the gap between lending to borrowers with equity below 20 per cent and those with greater equity widening from 5 to 20 basis points," he concluded.
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ANZ has today revealed it is cutting its variable package rates for new borrowers by between 0.35% and 0.90%

jordan_55689

ANZ cuts variable rates by up to 0.9%

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The second wave of COVID-19 has prompted ANZ to forecast Melbourne faces a 15 per cent fall in home prices by next year.
It is the largest peak-to-trough decline ANZ predicted for an Australian capital.
ANZ Bank has maintained its forecast for national house prices to fall by 10 per cent from peak to trough but now expects smaller falls in Hobart, Brisbane, Adelaide, Perth and Canberra.
While all those cities are set to fall between 6 and 9 per cent, the bank revised its forecast to a 15 per cent drop in Melbourne house prices, a dip greater than its previous prediction of a 13 per cent fall.
It still predicts a 13 per cent fall in Sydney, bottoming out in the second half of 2021. 
Darwin is expected by ANZ to stay in the doldrums, being down nine per cent.
The bank expects Hobart to fall by eight per cent) and Brisbane by six per cent.
The bank estimates Melbourne house and unit prices have already fallen by 2.2 per cent between March and July
It labelled the decrease “slightly more modest than we expected”, given government support payments like JobKeeper, superannuation withdrawals and deferred mortgage repayments helped the market/.
ANZ senior economist Cherelle Murphy said a dramatic decline in demand for housing had hurt both the sales and rental sectors.
“You’re going to have a greater unemployment problem in Melbourne simply because of the lockdown, (so) demand is going to be diminished,” she said.
With the Stage 4 lockdown in early August, Victoria’s economy is likely to have contracted further since.
In the three months to the end of June, the ANZ Stateometer showed Victoria’s economy deteriorated sharply, mainly due to weakness in the labour market and consumer sectors.
The ANZ believes Victoria's economy will contract 5 per cent or by more than $22 billion this year after a flat 2019-20. 
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j.ballantyne1990-6AQqhLzZaK

Melbourne faces 15 percent price falls by 2021: ANZ

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ANZ has announced the retirement of David Gonski as chair of the group’s board, effective following the release of the banks full-year results on 28 October.
The outgoing chairman will be replaced by Paul O’Sullivan, who joined the board in November 2019.
Mr Gonski has served as chair since 2014 and as a non-executive director for 11 years.
“I feel it’s the right time to hand over the reins,” he said.
"I am delighted Paul O’Sullivan will succeed me as Chairman and he has my absolute confidence. Paul is an outstanding director who has already made a strong contribution to the Board and I look forward to working closely with him on a smooth transition.
I feel it’s the right time to hand over the reins to Paul. We have in place an experienced, diverse and talented management team as well as having made significant progress on our ambitions to simplify and improve our operations. Importantly, we have also taken steps to improve the governance around matters impacting our reputation, including the now well-established Ethics, Environment, Social &amp; Governance Board committee.
Serving as ANZ’s Chairman will always remain a key highlight of my corporate career.
"This is not because of any false sense of prestige, rather the honour that comes with working with so many wonderful people who are doing all they can for our customers, our shareholders and their fellow staff members." 
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David Gonski retires from ANZ chairmanship

Savers squeezed again as ANZ cuts rates

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ANZ Research has forecast the national housing decline will reach 10 per cent, before seeing a modest recovery in late 2021, as economist start to work out the future after COVID-19.
They expect the biggest declines to be felt in Sydney, Melbourne and Hobart, all predicted to decline -13 per cent.
Brisbane and Darwin have been forecast to decline -7 per cent, Adelaide -6 per cent and Canberra -5 per cent, with Perth down just -2 per cent.
ANZ economists Felicity Emmett and Adelaide Timbrell anticipate prices will bottom out in mid-2021 as affordability improves, but the recovery is likely to be relatively gradual given that unemployment is expected to remain above 7% until 2022.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/13/ANZ%20housing%20forecast.jpg" alt=""> Hobart is set for the worst 2020 performance, but losses will be scaled back in 2021: Source ANZ Research
Emmett and Timbrell suggest the deterioration in household income will be the biggest driver of weakness.
"Already, nearly a third of Australian households have reported a deterioration in their finances due to COVID-19," the economists said.
"This collapse in income will create significant uncertainty for households and leave many unwilling to commit to buying or building a home."
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/13/ANZ%20price%20growth.jpg" alt=""> Price growth has slowed in Sydney and Melbourne after bouncing back from the mid-2019 downturn. Source: ANZ Research
Emmett and Timbrell said the disruption of population growth will impact prices given border closures, expected to damage the Sydney and Melbourne markets the most given the bulk of their population growth comes from net overseas migration.
"Investor demand is likely to be hardest hit in the current environment. With the rental market under pressure from both reduced demand and increased supply, the incentive to invest in property will be low," they added.
"While the deferral of home loan repayments will help prevent forced sales, the collapse in demand in the face of the extremely uncertain outlook will drive prices lower over the next year or so."
 
 
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jrobinson-rf4aSBido9

ANZ forecast 10% peak to trough declines until late 2021 rebound

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ANZ is the only bank in the big four to cut variable home loan rates in this latest cut.
They reduced rates by 0.15 basis points.
As a result of today’s changes, ANZ’s variable rate home loan customers will save approximately $34 a month or $406 a year. This is based on an owner occupier with a $400,000, 30-year loan paying principal and interest on the discounted variable rate on the minimum repayment.
The move follows on the back of the recent RBA rate cut during their emergency March 19 meeting where they reduced the cash rate to a record low 0.25%.
ANZ have also introduced a two-year fixed rate of 2.19% p.a for owner occupiers paying principal &amp; interest.
Like NAB they have made it possible to request a deferral of home loan repayments for up to six-months.
ANZ CEO Shayne Elliott said the package aimed to support Australian business and the people who work for them.
"We understand the impact this crisis is having and ANZ will play a major role in backing Australia's economy and our customers through these challenging times," he said.
"We have been working with both the Federal Government and our regulators to keep money flowing through the economy and we'll do all we can to keep businesses afloat and Australians employed, as well as reducing the financial pressure on households."
"Our decision to reduce variable home loan and small business rates is the right thing to do for our existing customers, particularly the significant number of our home loan customers who are self-employed and managing the effects of the COVID-19 crisis on their own businesses."
"The highly competitive fixed-rates being offered will provide customers certainty over repayments with our lowest fixed-rates on record."
RateCity.com.au research director Sally Tindall said the bank was providing relief for most of its borrowers.
"It's great to see ANZ has stepped up and delivered something for the majority of its borrowers to help them through these turbulent times," she said.
"In this economic climate, every dollar counts.
"When these changes come into effect, ANZ will have the lowest ongoing variable rate from the big four banks at 2.72 per cent," she said.
"Now three of the four big banks are offering fixed rates as low as 2.19 per cent, we're likely to see other lenders chase after them, potentially cutting fixed rates even further," she said.
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ANZ the only big four bank to cut variable home loan rates

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ANZ have completed a clean sweep of the big four banks who have now all passed on the official RBA rate cut.
ANZ group executive Australia retail &amp; commercial Mark Hand said the decision by the Reserve Bank to reduce the cash rate to historically low levels highlights the significant impact the outbreak of COVID-19 is already having on the global economy.
“While there were a range of factors considered in making this decision, ANZ is prepared to play its role in supporting both our customers and the broader economy through this period of uncertainty", Hand said.
“Customers wanting to increase the money in their pocket each month can contact us to decrease their monthly minimum payments. We also have competitive fixed-rates available for those looking to lock in these historically low rates."
Westpac went first, <a href="/expert-insights/finance/westpac-first-of-the-big-four-to-cut-rates-in-full-after-rba-cut">cutting within minutes</a> of the announcement, having been the last in to action in October.
CBA followed Westpac's cut about half an hour later, then NAB, and now ANZ.
CBA are the most likely to face scrutiny, not passing on the rates until March 24.
Westpac will pass the week earlier on March 17, while ANZ and NAB will be passing on the rate cut on March 13.
St George, Bank of Melbourne and Rams have also announced their intention to pass on the full cuts to customers.
Athena, Homestar, Reduce Home Loans, and Loans.com remain the only home lenders to pass on the cuts immediately.
 
 
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ANZ the last of the big four banks to pass on the full rate cut

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EXPERT OBSERVER
I think there were 2 pronounced developments during Q4 2019i, the first being there was a broad acceptance that an improvement in the market is here to stay in terms of price growth.
In terms of economic indicators, we’ve seen an improvement in the labour market over the past month or 2 which is a real positive compared to mid2019 when unemployment was trending higher.
The challenge is will there be enough job creation over the next few months given the headwinds around the bushfires and Coronavirus.
ANZ Research is anticipating the economy will not create enough additional jobs to drive unemployment lower and wages higher, which is expected to result in 2 more interest rate cuts towards the middle of the year.
The RBA has emphasised its belief that rate cuts are having the desired impact, but that it does take time.
The implications for the economy and property markets will continue to be felt through 2020.
In terms of property indicators, we’ve seen some tentatively positive numbers coming through in building approvals. This is important given they were at very low levels throughout 2019 for both apartments and detached houses.
Of course apartments were hit harder which reflected concerns over build quality and cladding issues which were more prominent in Sydney but still had an impact in Melbourne.
That said, it’s worth highlighting the large lead and lag times before getting product onto the market. Even if building approvals start to pick up today, there will still be a housing shortage in the short term.
What are your predictions for 2020?
Broadly it will be a good year from a housing standpoint. Anticipated rate cuts will further entrench growth in prices for existing and new dwellings across both detached housing and apartments. Prices are already above the previous peak for units and apartments in Melbourne.
We’ll continue to see a pretty solid presence of first home buyers in the market. But it gets complicated because price growth doesn’t help affordability which is already challenging. While the new home loan deposit scheme will help 10,000 first home buyers a year, it won’t affect a material change.
The demand and supply dynamic will put upward pressure on prices initially, but building approvals and construction should start to accelerate in the second half of the year. That’s the key challenge; supply can take 12-18 months to come through, and the delay could put further pressure on both housing prices and rents.
Vacancy rates are already low and if we’re not building enough for the remainder of the year it’s likely the vacancy rate will continue to fall and result in continued rent increases.
Auction results have been strong and there are greater levels of stock on the market and rising transactions.
It’s not just a short term sugar hit which people might have been expecting, and the realisation that a stronger market is here to stay is why we’re seeing more people in the market keen to purchase.
Secondly, the supply-demand imbalance continues. Over the final quarter last year we finally started to see some positive signs regarding the construction pipeline, which has been a long time coming. We’re not talking about a sharp rebound, rather some green shoots emerging by way of building approvals starting to stabilise rather than continuing to fall.
Building approvals fell more than 25% from the peak, and have now recovered just 3%. Housing finance also picked up for construction of new dwellings for both owner occupiers and investors, which is usually a good indicator of where building approvals will go. So we have reason to be more optimistic about the construction cycle than we were 3 months ago.
What are the key economic and property indicators telling us?
It’s a little mixed.
On the economic front, the recent bushfires and Coronavirus present some challenges. For people directly by the bushfires it’s catastrophic, but the impact on the broader economy is likely to be temporary.
There will be some rebuilding stimulus which the federal government has already announced that will go directly to these communities. Coronavirus will have a larger impact.
A recent ANZ Research note forecast the bushfires to take 0.2% off GDP, while Coronavirus will shave off 0.5% due to the impact on tourism and foreign students. And, unlike the bushfires, there won’t be any stimulus measures.
If you compare it to the SARS outbreak in 2002-2003 when Chinese tourist arrivals fell by more than 80%, the share of Chinese tourism is now 5-times larger.
But it’s not just about the number of visitors; they also spend the most per person, which significantly magnifies the impact.
DANIEL GRADWELL is the <a href="https://bluenotes.anz.com/authors/a-e/Daniel-Gradwell" target="_blank">Associate Director of Property at ANZ</a>
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Property market strong but supply demand imbalance continues: ANZ's Daniel Gradwell 

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ANZ have followed CBA by cutting their fixed rate home loans.
They've announced rate cuts of up to 0.86 per cent to fixed home and investment loan interest rates.
CBA <a href="/expert-insights/finance/cba-cuts-fixed-home-loan-rates-by-up-to-0-5">cut their fixed home loans</a> by up to 0.5 per cent last week.
ANZ’s two-year packaged fixed rate for owner occupier paying principal and interest is now the lowest rate in comparison website Canstar’s database at 2.68%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/2/21/ANZ%20Canstar.jpg" alt="">
Canstar's finance expert Steve Mickenbecker describes the market as "supercharged" as banks jockey to win back market share.
“ANZ is following hot on the heels of Commonwealth Bank reducing fixed rates", Mickenbecker noted.
"ANZ’s market share has lagged well behind in the post GFC period and the lender wants to reverse that trend.
“The biggest cuts are for investors borrowing with interest only repayments, up to a huge 0.86% for 4 and 5-year terms.
He says i
nvestors are the winners, with the two-year rate for principal and interest at 2.88%, only 0.20% ahead of the owner occupier rate.
“The investment cuts are slashing the higher margin banks applied to investment loans, both principal and interest and interest only, reversing the trend we saw when APRA clamped down on growth in these categories.
“Investment lending is now a competitive playground for the big banks.”
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ANZ cut fixed rate home loans for investors and owner-occupiers

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ANZ Bank has cut both its home loan and deposit rates in the lead up to the RBA's first meeting of the year.
They've cut the variable rate for new owner occupiers paying principal and interest with a 20 per cent deposit or more by 0.12 per cent. It is now at 3.12 per cent.
ANZ now offer the second lowest ongoing variable rate of the big four.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/23/Big%20Four%20Variable.jpg" alt=""> Source: RateCity.
RateCity.com.au research director Sally Tindall said ANZ appeared to be doing some "spring cleaning" ahead of the RBA’s meeting next month.Note: the above rates are new customer variable rates for owner occupiers paying principal and interest.
“ANZ’s recalibration of their deposit rates ahead of the next Reserve Bank meeting suggests they are getting their house in order ahead of a potential cash rate cut", Tindall said.
“Today’s home loan cuts are testament to the ongoing competition in the mortgage market. Yesterday we saw <a href="/expert-insights/finance/westpac-makes-big-cuts-to-fixed-rate-loans">Westpac slash investor fixed rates by up to 0.50 per cent</a> and we expect others will follow in coming days,” she said.
Following <a href="/news/nab-slashes-saving-rates-again">NAB's saving rate cut earlier in the month</a>, ANZ have followed suit, cutting their Online Saver account base rate from 0.10 per cent to just 0.05 per cent, the worst of the big four.
The old introductory rate for the first three months has been trimmed from 1.6 per cent to 1.55 per cent also.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/23/Big%20four%20savings%20rates.jpg" alt=""> Source: RateCity
“With a new ongoing rate of 0.05 per cent, ANZ’s online saver account is down there at the bottom of the barrel.“What’s disappointing is that while the home loan cuts are largely reserved for new customers, the savings cuts will hit everyone with an ANZ online saver account", Tindall added.
"A person with $10,000 in one of these accounts would be getting less than 50 cents in interest a month once the introductory rate expires. That’s not even enough for a litre of milk."
 
 
 
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