South East Queensland developer&nbsp;<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>’s entry into the Gold Coast apartment market has progressed from pipeline to market, with its Chevron Island project Bronze on Chevron now formally available to purchase ahead of a planned 2029 completion.

The 119-apartment development on Mawarra Street marks the Brisbane-headquartered builder-developer’s first residential play in the Gold Coast, following its expansion south from Brisbane and the Sunshine Coast.

<a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-surfers-paradise-qld-4217">Bronze on Chevron</a> comprises a mix of two-, three- and four-bedroom residences, with pricing starting from just over $1.5 million. The project is being delivered under Gardner Vaughan’s fully integrated model, with the group acting as both developer and builder, a structure it has consistently applied across its South East Queensland portfolio.

[smartcode_project:default project_id=107520 project_image_fid=367182]

Architecture has been designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jeremy-ferrier-landscape-design">Jeremy Ferrier</a>. The building presents as a single-tower scheme, with a focus on maximising outlook across both the Surfers Paradise skyline and the Nerang River.

Apartments have been planned with open-plan living zones extending to generous balconies, a response to the site’s dual-aspect positioning between river and ocean. Interiors follow a restrained coastal palette, with two colour schemes offered, and an emphasis on natural light and cross-ventilation.

[smartcode_project:default project_id=107520 project_image_fid=367181]

Resident amenity is concentrated across more than 1,250 sqm and includes a resort-style pool, gym, yoga lawn and rooftop entertaining areas. A function space with catering facilities forms part of the upper-level offering, alongside north- and south-facing outdoor areas.

Ground level will incorporate two retail tenancies, intended to extend the existing village character of the surrounding streets.

&nbsp;

[smartcode_project:default project_id=107520 project_image_fid=367200]

The project sits within walking distance of Thomas Drive’s established dining strip, while maintaining proximity to <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a> beach and broader Gold Coast amenity. The location, positioned on Chevron Island between the river and coastline, has increasingly attracted mid- to high-density development in recent years as the precinct evolves beyond its low-rise origins.

Gardner Vaughan’s move into the Gold Coast was first signalled in 2025, with the group identifying the region as a natural extension of its operations. Chief Executive Officer Simon Betteridge described the expansion as both “strategic and natural”, citing demand for well-designed apartments in lifestyle-driven markets.

Construction is expected to complete in early 2029.

[smartcode_project_cta:default project_id=107520]

Joel Robinson

Gardner Vaughan brings Bronze on Chevron to market as Gold Coast debut

One of the penthouses at Lily Lane, the latest stage of Carrington Place by Ellipse Property, has set a new local apartment price record.

The four-bedroom residence, purchased by a local downsizer, sold for $5.75 million—around 75 per cent higher than the previous record of $3.3 million.

Over 40 per cent of the first release of apartments at&nbsp;<a href="https://www.apartments.com.au/new-apartments/lily-lane-at-carrington-place-castle-hill-32-carrington-road-castle-hill-nsw-2154">Lily Lane</a> have already been snapped up just six weeks since it launched to the market.

&nbsp;

Located at 32 Carrington Road, <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a> and designed by award-winning architects <a href="https://www.apartments.com.au/architects/ptw">PTW</a>, Lily Lane is directly opposite the Hills Showground Metro station. It offers a total 213 units over two 12-storey towers - a mix of 67 one-bedroom, 100 two-bedroom and 46 three-bedroom apartments - with a ground-floor retail offering.

[smartcode_project:default project_id=151821 project_image_fid=368352]

Blake Schulze, National Director – Residential at <a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a>, says around 44 per cent of buyers are&nbsp;owner occupiers, with 35 per cent being investors and 21 per cent first homebuyers.

“Developments of this calibre are very rare in the Hills District, and Lily Lane’s sales success demonstrates the depth of demand for over-sized apartments that genuinely compete with freestanding homes," Schulze says.

"We are seeing particular demand from downsizers who want to remain in the area but transition into spacious, high-quality apartment living."

On the penthouse sale, it says it shows buyers&nbsp;are prepared to pay a premium for scale, quality, and direct access to the Metro.

[smartcode_project:default project_id=151821 project_image_fid=368351]

One-bedroom apartments are sized from 50-72 sqm with prices starting at $745,000, while two-bedrooms are priced from $990,000 with sizes from 75 to 132 square metres. Three-bedroom floorplans are sized between 97 and 182 sqm,, with prices starting at $1,395,000.&nbsp;

The three remaining penthouses, spanning up to 262 sqm, are priced from $2.9 million.

Over 75 per cent of apartments include dedicated studies, multipurpose rooms or family rooms, with select layouts offering walk-in pantries and laundries. Apartments are appointed with premium Miele appliances including ovens, washing machines, dryers, gas cooktops and dishwashers, while larger residences also incorporate integrated Miele microwaves, Fisher &amp; Paykel integrated refrigerators and five-burner Miele cooktops.

[smartcode_project:default project_id=151821 project_image_fid=360285]

Lily Lane will be constructed by award-winning iCIRT-rated builder <a href="https://www.apartments.com.au/builders/decode">Decode Group</a>, with construction to commence in mid-2026 and expected to complete early 2029.

Carrington Place comprises more than 800 apartments and is being delivered across multiple stages, with completion expected in 2032. Integrated with neighbouring bushland, the project will feature over 20,000 sq, of outdoor recreational area, including a one-kilometre boardwalk to Fred Caterson Reserve.&nbsp;

The Hills Showground Metro Station is just a two-minute walk away, offering fast connectivity to Sydney’s CBD, North Sydney, Chatswood, Macquarie Park and Norwest Business Park.

[smartcode_project_cta:default project_id=151821]

Ellipse sets Castle Hill apartment record with $5.75 million Lily Lane penthouse sale

Fresh off completing its Delano Crows Nest development, Lindsay Bennelong has lodged plans for its next project, this time turning its attention back to the beach.

The developer, started 20 years ago by Clarendon Homes founder Peter Campbell, is proposing a 37-apartment scheme at <a href="https://www.apartments.com.au/new-apartments/17-25-ashburner-street-manly-nsw-2095">17-25 Ashburner Street</a>, Manly, positioned between the southern end of <a href="https://www.apartments.com.au/developments/manly-nsw-2095">Manly</a> Beach and East Manly Cove.

Lindsay Bennelong called on local architecture firm Platform Architects to design the new building, given their success at Finn, Lindsay Bennelong's current luxury apartment project on North Steyne.&nbsp;

According to the Design Verification Statement by Bridie Gough of Platform Architects, the proposal “relates to the current context but also the desired future character of taller buildings suitable to the new planning controls.”

The site has been identified as a Low to Mid-Rise Housing (LMR) location, given its position within 400 metres of the Manly Town Centre E1 Business Zone. The LMR controls are intended to unlock additional housing supply in well-located areas close to public transport, allowing developers to seek increased height limits to support greater density.

“The proposal seeks to provide this increased level of housing whilst being respectful of some of the smaller scale buildings also nearby,” the statement reads.

Lindsay Bennelong Development Director Leigh Manser said the project has been carefully aligned with the intent of the LMR controls. The proposal will significantly increase housing yield on the site, replacing four houses and 10 apartments, comprising 25 bedrooms, with 37 new apartments delivering a total of 94 bedrooms, whilst remaining compliant with the LMR controls.

“Sydney is in a severe undersupply, and delivering more dwellings and more bedrooms than what currently exists is exactly what the LMR policy is designed to activate,” Manser said, noting that nine of the apartments will be allocated as affordable housing for frontline workers.

“We have already commenced discussions with our community housing provider to determine the rental levels that frontline workers can realistically afford in this location,” he said. “These will need to sit well below the standard affordable housing benchmark of 20 per cent below market rent, and that has been factored into our feasibility and pricing.”

<img alt="Manly" data-entity-type="file" data-entity-uuid="ad03000f-19f9-48b4-b27d-e85ca800a1da" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%208.41.59%E2%80%AFAM.png?VersionId=a.txHwCZgbCInlQ6QXbIrI.umvW1T.r8" />

The design of the building incorporates a wave-like indentation running through the façade, referencing the nearby coastline and anchoring the building within its local context.

The&nbsp;Design Verification Statement says careful consideration has been given to the articulation of the building, ensuring the bulk is broken down to a more human scale through a defined four-storey podium."

The scheme includes a mix of one-, two- and three-bedroom apartments, as well as a full-time building manager's office and wellness facilities including a sauna and a gym.

“The design ensures a high level of amenity, with apartments offering generous private open space, many with expansive views, and all with comfortable proportions."

<img alt="Bennelong" data-entity-type="file" data-entity-uuid="6a7f2812-72a1-4959-84b0-997e8cd88aed" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%2010.15.50%E2%80%AFAM.png?VersionId=6iMxU3MkXmHVHAoNhYBjnqgka8CUZNbk" />

<a href="https://www.apartments.com.au/developers/lindsay-bennelong-developments">Lindsay Bennelong</a>&nbsp;is currently developing Finn Manly, just four full-floor luxury apartments on North Steyne. They recently welcomed residents to its 81-unit Delano Crows Nest development, a&nbsp;carefully scaled infill project designed to bridge&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a>’s lively village centre with its surrounding heritage streets.

Designed by&nbsp;<a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>,&nbsp;<a href="https://www.apartments.com.au/new-apartments/delano-crows-nest-27-57-falcon-street-crows-nest-nsw-2065">Delano</a>&nbsp;is arranged across three low-rise buildings, incorporating a mix of one, two, and three-bedroom apartments alongside a limited number of townhomes addressing Hayberry Lane. The architectural approach drew on the area’s Art Deco lineage, reinterpreted through contemporary detailing and framed by landscaped communal gardens.

The developer also has a development site in Maroubra.

First look: Lindsay Bennelong's new Manly apartment development revealed

Fifty-nine residences across 37 levels. No more than two per floor. With 80 per cent now sold, what remains at <a href="https://www.apartments.com.au/new-apartments/madeline-by-mosaic-broadbeach-22-mary-avenue-broadbeach-qld-4218">Madeline by Mosaic</a> is a short list.

Madeline was always conceived at a scale that sits outside the normal register of Gold Coast apartment living. The residences are half- and full-floor configurations, with the largest spanning more than 400 sqm, dimensions that place them closer to the penthouse end of the market regardless of where they sit in the building.

That scale is the organising principle of everything else: how the floorplans are laid out, how the materials read, how the connection between inside and outside works.

[smartcode_project:default project_id=150135 project_image_fid=355941]

The interiors were developed in collaboration with <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a>, the architecture practice&nbsp;<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic</a> brought in as design partner for the first time on this project. The palette runs to natural stone, textured timbers, and soft metallics, materials chosen as much for their tactile quality as their appearance.

Light cleverly shifts across surfaces through the day, and the design is explicit about wanting that to be noticed. Full-height glazing runs across the primary living areas, and where the building faces east toward the ocean, those walls of glass are doing real work: framing a view corridor that the site's position directly opposite Broadbeach State School's playing fields keeps permanently open.

That outlook is the site's most consequential asset. In a suburb where new towers continue to rise, a protected view line is genuinely rare, and the Mary Avenue address secures it. Residents at Madeline will look out over open parkland rather than the rear of another building, a distinction that becomes more meaningful with each new development approved nearby.

[smartcode_project:default project_id=150135 project_image_fid=355939]

The private outdoor spaces are sized to match the residences themselves. Terraces on the upper levels frame uninterrupted ocean panoramas, and the planning ensures that living areas extend into those outdoor zones rather than treating them as separate attachments. The flow between the two is part of the design intent, not an afterthought.

Inside, the finish specification reflects the same approach. Rich stone benchtops, warm timber joinery, bespoke hardware, each element specified to hold up over time rather than read as a moment in a particular trend cycle.

[smartcode_project:default project_id=150135 project_image_fid=3409]

Beyond the residences, the amenity offering extends that register. A lap pool and sun deck anchor the outdoor space, alongside a magnesium pool, cold plunge, steam room, and sauna.

A commercial-grade gymnasium, residents' lounge, library, and boardroom round out a programme that functions more like a private members club than a standard building amenity floor.

Construction has commenced under Mosaic's in-house building arm, with completion scheduled for late 2028.

[smartcode_project_cta:default project_id=150135]

Madeline by Mosaic delivers penthouse-level living across every apartment

Developer Fortezza Group is the latest to take its new apartment development, <a href="https://www.apartments.com.au/new-apartments/the-belvedere-5-7-church-street-nelson-bay-nsw-2315">The Belvedere in Nelson Bay</a>, to the NSW Government.

Fortezza, predominantly a South East Queensland developer, is the latest to apply for State Significant Development&nbsp; status through the NSW Government's Housing Delivery Authority, a pathway becoming favoured by developers to speed up the approval process.

They are planning 57 two- and three-bedroom apartments across 5-7 Church Street and 42 Donald Street, near d'Albora Nelson Bay Marina. The diverse apartment mix has sizes from just over 80 sqm to the largest three-bedroom penthouses that reach nearly 200 sqm.

<img alt="Fortezza" data-entity-type="file" data-entity-uuid="090360e1-66d7-43ad-b686-aba81f173bf2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-29%20at%2010.22.40%E2%80%AFAM.png?VersionId=DMqF96eBZolqSAAAcugX0l66ueWng66m" />

Fortezza calls the project a "piece of Istria in Nelson Bay,"&nbsp;referring to the largest peninsula in the Adriatic Sea, shared by Croatia (90%), Slovenia, and Italy, which is known for its Roman history, Venetian-style coastal towns and inland hilltop villages.

They say the The Belvedere is strategically positioned at the apex of Nelson Bay, offering unrivalled views of the ocean, the bay and captivating topography of the area.

"Our commitment to maintaining the integrity of every view and sight line has been relentless," Fortezza Group says.

"Through extensive modelling and analysis, we ensure that each apartment enjoys the natural beauty of Nelson Bay, regardless of future developments. Each design element is carefully curated to harmonise with our European heritage, drawing profound inspiration from the Roman architectural marvels in Istria. The arches, the cascades of greenery and the stonework that define our project pay homage to the structures that once exemplified Roman grandeur."

Residents will have access to a pool, communal green spaces, an office and a coffee shop.

First look: Fortezza Group takes The Belvedere, Nelson Bay apartment development, to NSW Government

Anz Bank

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The ANZ have followed suit in the so-called battle of the big four banks.
They've only cut their standard variable rates by 0.14 per cent. 
The move follows <a href="/expert-insights/finance/nab-and-cba-fail-to-pass-on-full-rate-cut">CBA cutting 0.14 per cent and NAB 0.15 per cent</a>. 
Westpac have just <a href="/expert-insights/finance/westpac-the-final-big-four-bank-to-fail-to-pass-on-full-rate-cut">cut their rates by 0.15 per cent</a>.
“This was a considered decision balancing the needs of our customers in a low rate environment as well as the performance of our business and our role in stimulating the economy," ANZ Group executive Australia retail &amp; commercial, Mark Hand said.
<ul>
<li>For Standard Variable Rate Owner Occupiers paying Principal &amp; Interest the Index Rate will reduce by 0.14%pa to 4.79%pa</li>
<li>For Standard Variable Rate Investors paying Interest Only the Index Rate will reduce by 0.25%pa to 5.74%pa</li>
</ul>
Changes to variable rates are effective 11 October 2019.
<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/2019/10/2/ANZ%20Rate%20Cut.jpg" alt="">
“We were able to match the full rate reduction in July and the majority in June, however the dynamics of record low interest rates has resulted in a reduction in variable home lending rates of between 0.14%pa and 0.25%pa this time around.
“While we recognise many customers will use this as an opportunity to pay down their existing home loans faster, we hope this provides the economic stimulus the Reserve Bank is wanting to generate. 
“We have also announced a new fixed rate of 2.98%pa for home owners paying principal and interest with either two or three year terms available from tomorrow. This is the lowest residential rate on record for ANZ,” Mr Hand said.
The new standard variable rate for owner occupiers paying principal and interest will come in to effect on October 11, bringing it to 4.79 per cent. 
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jrobinson-rf4aSBido9

ANZ cut interest rates by just 0.14%

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The ANZ Bank has revised its forecast and now sees the bottoming of the housing market "in the coming months" following the policy turnaround. 
Economists Felicity Emmett and Adelaide Timbrell have forecasted prices will rise modestly through to the end of 2019.
They expect a three percent growth in 2020.
"After a period of significant weakness, house prices appear to be stabilising," their latest Australian Housing Update read.
"Sydney prices have fallen 15%, while Melbourne’s are down 11%," they advised.
<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/2019/7/16/Monthly%20housing%20prices%20ANZ.jpg" alt="">
"Brisbane prices have fallen only modestly, while Adelaide prices have been broadly stable.
"Perth remains weak, but Hobart has been a standout.
They cite the election result, back the back RBA cash rate cuts and APRA loosening their lending serviceability have all contributed to the quickening of the end of the downturn.
"All of these factors have helped to shift sentiment from one of pervasive negativity to cautious optimism," Emmett and Timbrell said.
They warned however against a property boom that we saw from 2012 to 2017.
<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/2019/7/16/Capital%20city%20prices%20v%20auction%20results%20ANZ.jpg" alt="">
"While the outlook definitely looks more positive, we do not expect a V-shaped recovery for prices," the report noted.
"Our view for some time has been that the tightening in credit has been the major driver of weakness, and while there has been some easing at the margin, changes to the use of Household Expenditure Measure (HEM) and the introduction of comprehensive credit reporting will offset some of the impact.
"Moreover, there is still a substantial amount of supply coming on stream, particularly in Sydney where the rental vacancy rate is at a 15-year high.
"This all suggests that the recovery is likely to be a fairly modest one.
 
 
 
 
 
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ANZ sees bottoming of the housing market in coming months

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An ANZ retail banking facility in Mona Vale failed to sell at Burgess Rawson auction this morning.
It was passed in at $5.7 million
Situated at 10-12 Bungan Street, the building is leased to ANZ for 10 years until 2025 with options to 2040.
The building recently underwent building upgrades as well as an ANZ fitout to bring it up to corporate standards.
Net income on the property is currently $260,549 with 3.5% annual rent increases.
The tenant pays all outgoings.
The listing notes there is proposed zoning uplift allowing future development potential (STCA).
<img src="https://www.urban.com.au/images/2018/10/15/ANZ%202.JPG" alt="">
Set on a 294 square metre block, the two storey building last sold for $2.02 million in 2000.
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j.ballantyne1990-6AQqhLzZaK

ANZ premises in Mona Vale fails to sell

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An ANZ retail banking facility in Mona Vale is set for October 23 auction.
Situated at 10-12 Bungan Street, the building is leased to ANZ for 10 years until 2025 with options to 2040.
The building recently underwent building upgrades as well as an ANZ fitout to bring it up to corporate standards.
Net income on the property is currently $260,549 with 3.5% annual rent increases.
The tenant pays all outgoings.
The listing notes there is proposed zoning uplift allowing future development potential (STCA).
<img src="https://www.urban.com.au/images/2018/10/15/ANZ%202.JPG" alt="">
Set on a 294 square metre block, the two storey building last sold for $2.02 million in 2000.
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ANZ premises in Mona Vale set for auction

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Jo Masters, the senior economist at ANZ, has gone against no movement consensus with her big call that there will be two interest rate rises this year. 
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<div class="m_8380867177741228828gmail-cq-article-content-paras m_8380867177741228828gmail-section">
She forecasts the RBA will take the cash rate from 1.5 per cent to 2 per cent during 2018.
Masters, the Chatswood based tennis playing mother of two, tips the first central bank move is likely to be in May, with one more in the second half of the year. She sees none happening in 2019.
She concedes it does depend on the February wage growth data release.
It will be the first rate hike in eight years, coming at a time when household debt to disposable income is at record highs.
Master's wonders just how households will respond noting it will be critical for retail consumption and ofcourse the housing market.
Masters operates by the view that its always better to have a view and be wrong, than have no view at all.
</div>
<div class="m_8380867177741228828gmail-cq-article-content-paras m_8380867177741228828gmail-section">
 
</div>
</div>
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ANZ's Jo Masters makes non-consensus 2018 cash rate call

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ANZ economists have suggested the slowdown in Canada’s extended property market boom could be a roadmap for future Australian housing market direction.
“Canada is arguably ahead of Australia in its economic and policy cycles, so watching developments there can be useful for those monitoring the Australian economy,” according to ANZ economists David Wilson and Jo Masters.
They noted house price growth in Canada has halved in the last year.
“Canada is nine months ahead in terms of monetary tightening,” Ms Masters told Fairfax's Domain, pointing to two recent interest rate hikes in Canada.
ANZ’s prediction since September has been that the Reserve Bank of Australia will hike twice in 2018. 
ANZ Bank predicts the Reserve Bank will raise official interest rates by 0.5 percentage points next year as the economy gradually improves, with the first hike tipped for May by ANZ economists David Plank and Felicity Emmett.
Canadian interest rates have come off a lower base than Australia, with hikes in July and September only taking the official cash rate to 1 per cent.
They forecast the Australian cash rate will be lifted by 0.25 percentage points in May, followed by another hike in the second half of the year, and then it will be be left unchanged over 2019 so as not to crunch spending of highly-indebted households.
Previously, ANZ was not forecasting any rate hikes in 2018.
“Canada recently released additional macro-prudential measures for the property sector," Ms Masters noted.
"These are likely to have a material impact on mortgage originations, housing affordability and property price growth in 2018.
"The hottest property markets in Canada – Vancouver and Toronto – are likely to be hit the hardest by these measures," Ms Masters said.
Already the data has signalled the downturn has set in.
Toronto’s monthly home sales - in Canada’s biggest city - have fallen by as much as 40 percent in volume, the largest annual decline since 2009. There have been four months of price declines in Toronto.
The price of the average home in Toronto fell 4.6 percent in July, the biggest monthly decline since at least 2000. From August to September, the city experienced a 2.7 percent drop. 
The monthly declines have not been enough to plunge annual gains into decline.
With Australian household debt sitting at record highs, the RBA faces uncertainty about how consumer spending will respond to slowing house-price growth, the ANZ said.
It recently advised about 38% of its home loan customers were repaying principal faster than required. 
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ANZ looks to Canada housing market as potential Australian roadmap

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ANZ said it has been increasing its owner-occupied home loans business much faster than the market while posting a cash profit increase of 5.3 percent to $1.79 billion for its third quarter ended June 30.  
In its third quarterly trading update, the bank said its lending growth in the owner occupied segment was 30 percent above the system average.
“We’ve said for some time as a strategy we want to be the best bank for people that want to buy and own a home and so we’ve been growing our business in owner occupied home loans much faster than the market,” ANZ CEO Shayne Elliott told the bank’s in-house news publication BlueNotes.
<a href="https://www.propertyobserver.com.au/images/2017/08/18/ANZmain.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/18/ANZmain.png" alt="">
He said the bank was re-weighting its portfolio towards that segment and “we’re really comfortable with that”. 
“The way we’re doing that is just really is focus and great product and distribution through our branch network,” added Elliot. 
<a href="https://www.propertyobserver.com.au/images/2017/08/18/ANZSummary.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/18/ANZSummary.png" alt="">
ANZ said it was also on course to meeting macro prudential requirements for mortgage growth.
Investment lending was at 80% of the combined industry average.
Its research arm recently said that the slowdown in investor borrowing was continuing, and quarterly annualised growth sits at 6%.
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jonathanchancellor-7SQnKwU6yx

ANZ's owner-occupier lending growing faster than rivals

<html><body>
ANZ Banking Group has issued a warning about shares being issued by developers to property investors that side-step planning laws and can’t be used as security for loans.
Calling these securities “unacceptable" the bank has issued a confidential memo to its banking and mortgage broker networks warning about the deals that are being detected around Sydney's inner suburbs, the Australian Financial Review reported.
The bank says the security structure, which is being used to sell multimillion share offer documents, could trap unwary buyers in hot property markets.
Buyers of the securities will not have title to a single property, will be unable to use them for a loan with most lenders and could have difficulty finding a buyer, the AFR said citing banking specialists.
The deals were likely detected when investors tried to use the shares as security for loans.
Copies of the contracts, which price individual shares at more than $1.6 million, appear to have been documented by lawyers and accountants. They have been issued and signed this year.
Lenders fear the security would place them behind other creditors in the event of a foreclosure, which makes the risk “unacceptable”.
"It has come to our attention that customers are offering unsuitable company share title securities for home loan applications," the ANZ memo told its broker network states.
An ANZ spokesman confirmed the arrangements but said it had so far only identified a handful of contracts around Waverley and Randwick, the AFR reported.
The issue stems from the fact that local councils will not issue strata titles for developing multiple residences on a property.
"Some councils, particularly in NSW, are not allowing newly established properties to be subdivided, so the customers/vendors are sometimes setting up a private company and issuing shares,” the memo continued.
"These tend to be duplex type arrangements, where a certain number of shares will equal one unit and a certain number equals the other unit."
A duplex property is effectively two conjoined properties occupying one block or plot of land and sharing at least one common wall. Both dwellings in a duplex are built at the same time.
If strata titled, each dwelling may be sold and owned separately. But if not strata-titled both dwellings within the duplex can only be sold together.
Under the arrangement, the ownership of the land stays in the name of the vendor. The vendor then sets up a company that issues shares for sale.
It effectively means the purchaser does not have exclusive use of the proposed unit. For example, a purchaser of a 25 per cent share in four apartments would own 25 per cent of all units, not a specific unit.
"These types of security properties are not deemed "company title and are unacceptable," the bank states.
"Any customers entering these arrangements should be informed that ANZ does not support this type of lending."
A spokesman for National Australia Bank was cited by the AFR as saying that it also does not accept company share titles or stratum titles as acceptable residential security for home loans.
Other lenders declined to comment on whether property investors are using similar sales methods, but mortgage brokers say they would be surprised if other lenders had not been approached.
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ANZ warns against developers issuing 'unacceptable' securities to property buyers

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An established ANZ bank in Narrabri, at the location for 35 years, is now up for auction.
The 668 square metre property located at <a href="https://www.burgessrawson.com.au/2P1282#.WAWS_txJtyw" target="_blank">137 Maitland Street </a>has a secure five year lease to ANZ until 2018 with the option to extend to 2023.
This property is in the heart of north-west NSW, with a shire population of around 14,000. It has high exposure to the main street corner site with ample off street parking at the rear.
Surrounding the property are businesses including Domino’s, Subway, Australia Post, Liquorland, Target and Coles.
The tenant is required to pay all outgoing according to the lease and it is an easily managed, single tenanted investment with a net income of $57,484 per annum plus GST.
The property is offered through Burgess Rawson agent Rhys Parker.
It last sold at $660,000 in 2009.
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Established ANZ bank in Narrabri up for auction

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GUEST OBSERVER
Funding markets have shown some stress in recent weeks as investors and borrowers prepare for imminent structural reforms and amid cyclical issues around banks.
We look at the recent moves in single currency and cross-currency basis markets, USD Libor and credit spreads.
With less than two weeks until US money market funds are required to comply with new liquidity and asset rules, we opine on the outlook for funding markets.
Funding markets have seen significant shifts in recent weeks as markets prepare for the upcoming new money market rules in the US. The rules, outlined in US money market reform 2a-7 primer, will come into force on 14 October.
In addition to money market reform, a confluence of factors has increased the cost of funding, namely quarter and year-end as well as concerns around European banks. There has been in recent weeks the usual pickup in funding stresses associated with quarter end – normally because of the need for 3 month funding which rolls over the ‘turn’ of the calendar year (or financial year end for US banks).
With banks now less willing to have significant balance sheet items over their year-end, the cost of USD funds will remain elevated. This quarter end has seen an escalation of this normal arrangement due to the money market reform being implemented at the same time.
Furthermore, as investments shift out of ‘prime’ funds (those who hold credit) to government only funds, the ability of both banks and corporate borrowers who access short-term funding has been diminished. This has forced borrowers out the term curve – or in the case of sectors of the bank market – to simply ‘pay up’ for alternate sources of funding.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.32%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.32%20PM.jpg" alt="">
The demand for USD has shown up in the sharp moves in 3 month cross-currency basis swaps (Figure 1) which have lifted the cost of funding sharply in the last week. The JPY basis has been driven by the structural need for Japanese banks to find a new funding source given their large reliance on US MMFs. This issue has not been fully addressed despite an increase in USD funds available from the BoJ. That said, it has led to a wider ‘Japan premium’ (which is the cost of USD 3 month Libor for Japanese banks relative to other members of the Libor panel).
THE BASIS FOR OTHER MOVES
In comparison, the move higher in USD FRA/OIS and Libor/OIS, as well as a gradual but significant rise in 3 and 6 month USD Libor since mid-year, has been gentler. The move in EUR cross-currency basis (see Figure) 1 has come at a time when European banks have been under the spotlight. This unwanted introduction of a systemic threat has augmented the current demand for USD funding.
The basis has moved to the most negative level (highest cost for USD funds) since the European sovereign crisis period in 2012. Both prior to this period and since, central banks have introduced a number of measures to allow for USD liquidity in times of stress.
After a reasonably steady period, the basis has dropped from -25bp to -59bp since mid- September. The spread remains a long way from its historic lows of -210bp in 2008-09 and the -160bp level seen in 2011.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.38%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.38%20PM.jpg" alt="">
The demand for USD via the ECB's 1 week funding mechanism has also seen a sharp rise. Last week’s auctions for 1 week USD funding saw just under USD6.4bn awarded to twelve banks. This was the largest amount requested since 2014.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.48%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.48%20PM.jpg" alt="">
In the FRA markets, the modest move wider for EUR FRA/OIS has not been matched by the sharper USD move. This suggests that concerns over European banks have not yet shown up in funding for EUR. In fact, the 3 month Euribor/OIS spread is little moved and is at multi-year lows. We believe any stresses are likely to show up in the USD funding markets – rather than in EUR.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.57%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.27.57%20PM.jpg" alt="">
A RISING TIDE
The single currency basis market, at least for USD, has steepened sharply in the last year and has risen significantly higher than the levels seen during the 2012 European crisis. Similarly the USD 3s/1s basis curve has steepened to the highest level since 2009. 3s/1s sits at 25bp, around 3bp higher than what it reached in the European crisis. In the last few weeks, domestic USD basis has stabilised at these elevated levels.
Looking at the forward curves for single currency basis, it would appear that the peak for the 1 year basis has been set and will begin to match the forwards. The risk to this view would be a sustained period of higher USD funding costs and increased market expectations for Fed hikes.
In time, such an outcome should narrow the 1 year 6s/3s and 5 year 6s/3s basis, driven by a rise in the latter.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.28.08%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.28.08%20PM.jpg" alt="">
OUTLOOK FOR FUNDING POST US MONEY MARKET REFORM
US money market funds now have less than ten days to comply with the new rules governing their operations. As Figure 6 shows, total holdings in prime funds are around USD600bn. While we expect some balance to be retained in the funds that choose to hold credit assets, there is likely to be further reduction in the coming days. This should, all things being equal, push USD Libor and USD Libor/OIS higher and wider.
It is worth noting that while the larger shifts in Libor have reflected a replacement premium for USD bank funding, corporate borrowers are also affected as they will need to source alternate means of funding. These may come via bank revolver credit facilities or through the term market as borrowers.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.28.15%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%205.28.15%20PM.jpg" alt="">
After the full implementation on 14 October, we expect markets to stabilise and for the Libor rate to reflect more cyclical news around the banking sector as well as the eventual addition of a premium or reflect market-based expectations of a Fed rate hike in December.
We also expect to see an increase in the issuance of term debt for banks as the ability to use short-term funding comes to an end. This more expensive method of borrowing also comes at a time when other regulatory requirements will be placed on the market.
WHAT TO WATCH
The key variables to watch will be the use of FX USD swap lines at the various central banks (primarily the BoJ and ECB). Domestic USD basis (6s/3s and 3s/1s) and 3 month JPY and EUR cross-currency basis are also important to gauge the demand for USD from non-US counterparties hedging loans, assets, and borrowings.
Bank credit spreads are an important gauge of the market’s perception of asset quality. While these have widened recently, they do not reflect significant concern. The CDS market, once a popular product in financial markets, has become an illiquid and poorly- traded instrument.
Lastly – and perhaps obviously – as the money market reforms are finalised, the USD Libor rate and spread to OIS are expected to rise a little further before stabilising and they represent a more realistic price for USD funding.
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Martin Whetton is senior rates strategist, ANZ. Katie Hill is strategist, ANZ. Both can be contacted <a href="https://www.anz.com/personal/" target="_blank">here.</a>
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