<p>Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.</p>

<p>Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;</p>

<p>David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;</p>

<p>“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;</p>

<p>Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;</p>

<p>At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;</p>

<p>Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;</p>

<p>Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;</p>

<p>However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.</p>

<p>Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.</p>

<p>The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" /></p>

<p>Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.</p>

<p>The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="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/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”</p>

<p>The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.</p>

<p>The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.</p>

<p>The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”</p>

<p>The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.</p>

<p>“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”</p>

<p>From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.</p>

<p>“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”</p>

<p>The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.</p>

<p>“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.</p>

<p>Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">EXPERT OBSERVATION</div>
<div class="column"> </div>
<div class="column">Weakness in Australia’s housing market has persisted longer than we expected, and the rate of decline in prices has recently accelerated. </div>
<div class="column"> </div>
<div class="column">Auction results are also soft, suggesting we will see a further cooling in prices over the near term at least.</div>
<div class="column"> </div>
<div class="column">Additional headwinds are possible, such as the shift away from interest only loans. There could also be further tightening of credit as the impact of the current regulatory focus on mortgages flows through into lender behaviour. All of this suggests that the fall in house prices will be quite a bit larger than we previously expected, with recovery coming later.</div>
<div class="column"> </div>
<div class="column">We will publish revised forecasts for house prices in our upcoming housing chartpack. We do, however, think stabilisation of the market later this year is the most likely outcome – unless the credit tightening materially extends beyond what is happening at present. The fundamentals for the market, low interest rates and continued strong population growth, remain supportive. And the experience of last year was that shifts in the regulatory regime are priced in by the market over the course of months rather than years.</div>
<div class="column"> </div>
<div class="column">Click here <a href="https://www.propertyobserver.com.au/images/2018/6/6/figure1.jpg" target="_blank">to enlarge.</a>
</div>
<div class="column"> </div>
<div class="column"><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/2018/6/6/figure1.jpg" alt=""></div>
<div class="column"> </div>
<div class="column">AUSTRALIA’S HOUSING DATA CONTINUES TO SOFTEN</div>
<div class="column"> </div>
<div class="column">CoreLogic’s housing price data show that the aggregate housing market has continued to soften, with dwelling prices down 0.3% m/m in seasonally adjusted terms in May. That is now nine of the past ten months that have seen lower prices, and the decline has persisted longer than we originally anticipated.</div>
<div class="column">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Of course, there is not just one housing market in Australia, and the picture is different across the capital cities. Prices in Sydney have been falling for most of the past year, and now sit 4.2% lower than the peak of July 2017. Melbourne was initially more resilient, but has since recorded slightly larger price falls than Sydney in each of the past three months. In contrast, prices are still rising in Hobart and Canberra, while the post-mining boom decline in Perth prices continues to ease. </span></p>
<p><span>As well as the price falls in Sydney and Melbourne lasting longer than expected, the scale of decline in recent months has accelerated somewhat. Sydney recorded declines of 0.2% and 0.3% m/m in each of the first three months of the year, but April and May saw this pick up to falls of 0.4% m/m and 0.6% m/m respectively. Melbourne has transitioned from small price rises in January and February to declines for the past three months. The starting point for these major markets is therefore weaker than we previously expected. </span></p>
<p><span>FURTHER WEAKNESS IS IN STORE </span></p>
<p><span>Our expectation that prices would have begun stabilising by now was based on auction results, which had settled through the end of 2017 and opened 2018 at reasonable levels. Consistent with this, the pace of house price declines had been moderating since a large decline in October. However, this was not sustained, and nationwide auction clearance rates have fallen from an average of 66% in February to just 58% in May. This is the weakest monthly result since the start of 2013, and suggests that prices are likely to come under further pressure over the near term.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/6/6/figure2.jpg" target="_blank">to enlarge</a></p>
<p><span><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/2018/6/6/figure2.jpg" alt=""></span></p>
<div title="Page 2">
<div>
<div>
<div>
<p>This weakness is challenging our previous view that prices would stabilise and then recover somewhat to finish the year in positive territory. There are still a number of headwinds that are likely to weigh on prices through the remainder of 2018, including the shift away from interest only loans, and the ongoing tightening of credit availability. It is important to acknowledge that this cycle is being driven by different factors than previous price downturns. Previous periods of falling housing prices (Figure 3) have coincided with increases in mortgage rates and/or mortgage rates hitting elevated levels. Neither is the case this time. Interest rates have increased from their 2016 and 2017 lows, to the tune of 5bp for owner-occupiers and 35bp for investors, but these movements pale in comparison to previous cycles. Nor are interest rates high. Servicing costs are around the long-run historical average, even with mortgages that are much larger than in the past.</p>
</div>
</div>
</div>
</div>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The primary driver behind this slowdown in prices is the availability of credit, rather than the cost of credit. Banks have responded to regulatory requirements by implementing a combination of lower loan-to-income ratios, lowering estimates of rental income from investment properties and raising expense estimates. Ongoing changes in this space cannot be ruled out, which is something we will be watching closely. Indeed, the RBA noted in its June meeting that </span><span>“</span><span>there may be some further tightening of lending standards</span><span>”</span><span>. Developments of this nature will continue to apply downside pressure to house prices. </span></p>
<p><span>The key question is how far this pressure will </span><span>extend? We can’t be certain of this given </span><span>the unprecedented factors driving the slowdown. We think developments through 2017 and early 2018 are instructive, however. The additional tightening in credit to investors triggered by the regulator in early 2017 was the catalyst for the weakness through that year, in our view. </span></p>
<p><span>But the impact of this had faded by the end of the year, with the auction clearance rate starting to rise and the pace of decline in house prices easing considerably. This indicates to us that if the fundamentals of the economy remain supportive the impact of credit tightening on house prices is not permanent. </span></p>
<p><span>With this in mind we think the solid fundamentals of the Australian economy mean that by late this year the impact of the current credit tightening will likely be fully priced and the market will have stabilised. We will publish updated forecasts for house prices in our upcoming housing chart pack. </span></p>
<p><span>There is necessarily an element of conjecture in this view. We will need to watch the data carefully to see whether things evolve in this manner.</span></p>
<p> </p>
</div>
</div>
</div>
</div>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/6/6/figure3.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/6/6/figure3.jpg" alt=""></span></p>
<p><span><span>Daniel Gradwell is a senior economist at ANZ</span></span></p>
<p> </p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

jrobinson-rf4aSBido9

Housing market weakness challenges ANZ's view on price direction

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>EXPERT OBSERVATION</span></p>
<p><span>The fall in housing finance in March is not surprising, given that we already knew that March was a weak month for the housing market. We will continue to watch developments in the availability of credit very closely. </span></p>
<p><span>Any further tightening in credit conditions could imply further weakness in the housing market, and would challenge our current view of mild house price growth by the end of the year.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure0.jpg" target="_blank">to enlarge.</a></p>
<p><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/2018/5/11/figure0.jpg" alt=""></p>
<p>The value of Australian housing finance commitments fell heavily in March, with the investor segment driving the decline at -9% m/m. This is the weakest monthly result for investor borrowing since September 2015, when APRA’s macroprudential policy limiting lending to investors was in full effect.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure1.jpg" target="_blank">to enlarge.</a></p>
<p> <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/2018/5/11/figure1.jpg" alt=""></p>
<p>On the previous occasion, the owner-occupier segment offset much of the investor weakness, but that was not the case in March.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure2.jpg" target="_blank">to enlarge.</a></p>
<p><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/2018/5/11/figure2.jpg" alt=""></p>
<p>The drop in investor borrowing means that investors only accounted for 42% of transactions nationwide – the lowest level since 2012. While this result predates APRA’s recent decision to remove the 10% ‘speed limit’ on investor borrowing, it is hard to see a re-acceleration in the investor segment with sentiment clearly subdued. Having said that, recent announcements from several banks have seen some cuts to investor mortgage rates, which could help ensure such a sharp drop in borrowing is not repeated.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure3.jpg" target="_blank">to enlarge.</a></p>
<p><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/2018/5/11/figure3.jpg" alt=""></p>
<p>Elsewhere, the finance for new dwellings has started to trend lower, which suggests that the recent rise in building approvals will soon run out of steam. This won’t affect our construction outlook though, as a large backlog of work will still support activity this year. Finally, it looks like the flood of first home buyers, driven by New South Wales and Victorian stamp duty discounts, is past the peak.</p>
<p>Daniel Gradwell is a senior economist at ANZ.</p>
<p>  </p>
</div>
</div>
</div>
</div></body></html>

March fall in housing finance unsurprising: ANZ 

<html><body>
<div class="cq-article-content-paras section">
<p>The ANZ expects the banking royal commission to probe its treatment of farmers following the Landmark acquisition during the financial crisis.</p>
<p>But chief executive Shayne Elliott says he is not expecting any surprises when the royal commission examines business lending during its next round of hearings, given almost every aggrieved customer has been remediated. </p>
<p>ANZ's purchase of the Landmark loan book from the Australian Wheat Board in 2009 was also a key focus of the 2016 parliamentary inquiry into loan impairments.</p>
<p>The committee heard evidence from a handful of Landmark's customers that ANZ had engaged in deliberate impairments or defaults of performing loans, but said in its final report it was not able to conclusively determine this had occurred. </p>
<p>The treatment of farmers by ANZ, and of developers by Bankwest and CBA, were the main motivation for members of the National Party to threaten to cross the floor of the Parliament late last year to initiate a royal commission into the banks. </p>
</div>
<div class="cq-article-content-media section">Elliott told The Australian Financial Review the next set of royal commission hearings, which begin on May 31, will look into business lending in the agricultural sector.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">"We did have some failings with respect to the Landmark portfolio that we acquired," he said.</div>
<div class="cq-article-content-paras section">
<p data-gtm-vis-first-on-screen-7770372_137="29186" data-gtm-vis-total-visible-time-7770372_137="2800">"We acquired it, most of the problems we had came with that acquisition. We were not resourced sufficiently, to first identify the real problems, and then to deal with them in a timely manner. We were wrong. We have said that, and we have remediated (customers)." </p>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

ANZ readies for Landmark farmers complaints at royal commission

<html><body>
<div>
<p>The ANZ has raised their 2018 house price forecasts.</p>
<p>It expected prices to rise 2 per cent nationally this year, higher than the 1.4 per cent increase it predicted two weeks ago. </p>
<p>It comes just two weeks after their most recent update.</p>
<p>It suggests the likelihood the next Reserve Bank of Australia rate rise won't come until next year would push up dwelling prices faster this year than previously expected. </p>
<p>The lender expects the central bank to raise rates twice next year.</p>
<p data-gtm-vis-recent-on-screen-7770372_137="3822" data-gtm-vis-first-on-screen-7770372_137="3822" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"We've changed our view on the RBA – our expectation now is for no hikes in 2018 and two in 2019 – which is a positive for the model's forecasts in 2018," the bank said.</p>
<p data-gtm-vis-recent-on-screen-7770372_137="3822" data-gtm-vis-first-on-screen-7770372_137="3822" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"This is offset to an extent by the slightly lower than forecasted price growth in Q1, which means that momentum will be less of a positive for the forecast than previously though."</p>
<p>Under the new forecasting model ANZ said on Wednesday it had introduced, it predicted dwelling price growth next year of 4 per cent.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/FORECAST.jpg" target="_blank">to enlarge.</a></p>
<p><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/2018/4/19/FORECAST.jpg" alt=""></p>
<p>This was also higher than the 3.6 per cent gain that ANZ predicted two weeks ago. </p>
</div>
<div>
<p>It noted actual house price growth for Q1 2018 underperformed relative to the model's expectations.</p>
<p>The bank had previously gone out on a limb suggesting there would be two rate rises during 2018.</p>
<p>Meanwhile the latest ANZ-Property Council Survey shows that optimism in the property sector has remained elevated as 2018 progresses.</p>
<p>Nationwide confidence rose to the highest level on record, with improvement across all states and territories.</p>
<p>"The convergence across the country continues," the report noted.</p>
<p>"We have previously highlighted the trend improvements in Western Australia and Queensland, but South Australia has been a quiet achiever, and is now the most optimistic region in Australia."</p>
<p>It also noted the outlook for the housing sector is improving as expected construction activity has slowly picked up, and a large backlog of work will underpin activity this year.</p>
<p>"Price expectations are also stabilising in positive territory, with the exception of New South Wales," it noted.</p>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Most su</span><span>rvey respondents still expect residential property values to increase over the next year, with the notable exception of New South Wales. </span></p>
<p><span>Western Australia is the most optimistic region, with a net 53% of respondents expecting to see prices rise from here.</span></p>
<p><span> In New South Wales, a net 11% of respondents expect prices to decline in the next 12 months. </span></p>
<p><span>"We believe that the worst of the price falls are now behind us, Sydney included," the survey suggested.</span></p>
</div>
</div>
</div>
</div>
<p>But it’s not all smooth sailing for the economy as the retail sector has been under pressure for some time, and respondents are increasingly pessimistic about the outlook for the next 12 months.</p>
<p>"Expectations of price growth and construction activity in the retail sector are falling, and any improvement feels some time away," the report authors, Daniel Gradwell and David Plank  noted.</p>
</div>
</body></html>

ANZ says house prices will rise 2 percent in 2018, higher than recent 1.4 percent forecast

<html><body>
<p><span>ANZ has increased on its one to five year fixed rates and for fixed owner occupier and investment loans of up to 34 basis points.</span></p>
<p><span><span>Mortgage brokers were advised </span><span>ANZ</span><span> was raising fixed rate interest rate deals across its popular </span><span>Breakfree</span><span> home loan deals.</span></span></p>
<p>On a three-year owner occupier principal and interest fixed-rate deal the rate will jump by 10 basis points from 3.99 per cent to 4.09 per cent.</p>
<p>This is on the popular Breakfree product which is among the bank’s most popular home loans.</p>
<p>Mozo found this will result in repayments on a $300,000 30-year home loan rising by $17 per month, from $1431 to $1448.</p>
<p>While on a three-year investment interest-only fixed-rate deal on a Breakfree loan the rate will also lift by 20 basis points from 4.69 per cent to 4.89 per cent.</p>
<p>Mozo data shows on the same loan size repayments will increase by $50 per month from $1173 to $1223.</p>
<p>This time last year Mozo noted ANZ lifted two year rates by 23 basis points to 3.98% and pumped three year rates up 34bp to 4.19%.</p>
<p><span><span><span> </span></span></span></p>
<p> </p>
</body></html>

ANZ raises fixed rates in early 2018 move

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Currently, auction clearance rates, which have a history of accurately leading dwelling prices, suggest that the downturn in house price inflation may ease in coming months.</p>
<p><span>Auction clearance rates and the credit impulse, while providing leading information about house prices, are only useful over a matter of months. To accurately forecast housing prices over a longer-term, we need a different approach. </span></p>
<p><span>We have built a model of Australian housing prices to inform our view of the market. </span></p>
<p>The model’s forecasts are consistent with our expectation that national housing price growth will continue to slow in 2018<span> (Figure 1), though only moderately and without falling into negative territory. </span></p>
<p><span>According to the model, housing price growth will trough at around 1% y/y in the second quarter of 2018, growing around 2% y/y for the year as a whole. However, this slowdown is unlikely to persist as the model forecasts that growth will accelerate to around 4% y/y in 2019. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure1.jpg" target="_blank">to enlarge</a></p>
<p><span><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/2018/1/10/figure1.jpg" alt=""></span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The second half of 2017 saw an easing in housing price growth, compared to the first half of the year in which Sydney and Melbourne had pushed national growth rates into double digits. Tighter macroprudential regulations were the primary cause of that slowdown, further dampened by soft wage growth. </span></p>
<p><span>With the intense scrutiny that movements in Australian house prices receive, we decided to spend the summer building a new model to inform our forecasts</span><span>1</span><span>. This provides an additional method of producing projections. </span></p>
<p><span>In 2018, we expect continued deceleration in price growth. Our model is forecasting national dwelling prices to grow 1.9% in 2018, compared to 4.2% for 2017, but then to accelerate to 4.1% in 2019. Significantly, we do not foresee a nationwide decline in dwelling prices in the next two years, although individual cities may see annual falls. </span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>There are a couple of leading indicators that provide information about likely changes in house prices. The auction clearance rate is a simple and historically accurate tool for forecasting movements in housing prices in the near term (Figure 2). Interestingly, it has stabilised in recent months (once you seasonally adjust the data), suggesting the worst of the recent slowdown may be over. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure2.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/1/10/figure2.jpg" alt=""></span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Another tool we have had some success with is the housing credit impulse. This looks at the change in the growth rate of credit as a signal for the change in house prices (Figure 3). </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure3.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/1/10/figure3.jpg" alt=""></span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>These tools work because they effectively summarise the key demand and supply factors in the housing market. The problem is that they only provide short-term signals about the change in house prices </span><span>– </span><span>a matter of three to four months in both cases. </span></p>
<p><span>To forecast house prices beyond the near term, we need to consider the likely drivers of supply and demand and anticipate their impact on house prices. </span></p>
<p><span> </span></p>
<p><span>We chose an error correction model (ECM), the advantage of which is that it is simple and it captures the main dynamics of housing price movements then makes the link between prices and economic conditions explicit. </span></p>
<p><span>There are two steps to estimating the model. </span></p>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>First we determined the fundamental price </span><span>– </span><span>that which would prevail over the long term, without influence from the economic cycle. Population growth emerged as the best predictor there. To measure supply, we looked at other variables but found them to be practically and statistically insignificant. </span></p>
<p><span>Next, we used an equation with three elements to predict shorter-term changes in dwelling prices. These were: </span></p>
<ol>
<li>
<p><span>The error correction term </span><span>– </span><span>the difference between actual dwelling prices and the fundamental value estimated in the first step </span><span>– </span><span>because prices tend to revert to their fundamental value over time. </span></p>
</li>
<li>
<p><span>The lagged growth rate of dwelling prices </span><span>– </span><span>to account for the momentum that typifies housing price movements. </span></p>
</li>
<li>
<p><span>Changes in dwelling investment, gross total incomes and the average mortgage rate </span><span>– </span><span>to capture the effect of economic conditions, ie demand and supply. </span></p>
</li>
</ol>
<p><span>Together, these variables are sufficient to capture the main economic drivers of dwelling prices, without over-complicating the model. </span></p>
<p><span>We tested the model’s accuracy by producing two</span><span>-year forecasts on a rolling basis from 1995 to 2017 and comparing them to actual prices (Figure 4). </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure4.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/1/10/figure4.jpg" alt=""></span></p>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Our model outperformed benchmarks, such as an AR(1) model and the four quarter moving average of prices. </span></p>
<p><span>IN THE MEDIUM TERM, PRICES WILL KEEP RISING </span><span>– </span><span>JUST </span></p>
<p><span>Using our forecasts for the relevant input variables over the next two years, the model predicts that housing price growth will continue to slow in the near term, bottoming out at 0.8% y/y in the second quarter of 2018 and gradually picking up thereafter. </span></p>
<p><span>We found changes in the </span><span>lending rate </span><span>to be the largest drag on prices in 2018, particularly in the second half of the year. Underlying this is our expectation that the RBA will hike its </span><span>policy rate </span><span>twice in 2018, pushing up mortgage rates. </span></p>
<p><span>GDP </span><span>growth will, we expect, accelerate to around 3%, and the </span><span>unemployment </span><span>rate will edge lower, which would prompt the RBA to take the real cash rate out of negative territory. However, this forecast assumes an uptick in </span><span>wage growth</span><span>, so the Q4 wage price index data (out 21 February) will be critical for our view. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure5.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/1/10/figure5.jpg" alt=""></span></p>
<div class="page" title="Page 4">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Construction </span><span>activity will be a drag on prices in the first half of 2018 according to the model. This reflects the lagged effect that </span><span>2017’s </span><span>elevated levels of construction activity are likely to have on prices. Roughly 200,000 dwellings are now under construction, which is enough oncoming supply to dampen price growth. </span></p>
<p><span>Income growth </span><span>will, we anticipate, have a small positive impact on prices in 2018. As with our interest rate forecast, our confidence in this and in the trajectory of income growth will firm up following the next WPI print. </span></p>
<p><span>BEYOND THE MEDIUM TERM </span></p>
<p><span>Looking further ahead, the model predicts that housing price growth will improve in 2019. For 2019, the forecast is for prices to grow 4.1% y/y. We are not expecting any moves from the RBA in 2019, so </span><span>the drag on price growth from 2018’s hikes </span><span>is likely to be short lived. Also, we expect a mild slowdown in dwelling investment in 2018, which will be positive for prices in 2019. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/1/10/figure6.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/1/10/figure6.jpg" alt=""></span></p>
<div class="page" title="Page 4">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Overall, the model supports our view that while nation-wide growth in housing prices will slow in 2018, prices will not fall. </span></p>
<p><span>The main risk to this forecast is from interest rate movements. </span></p>
<p><span>If wage growth disappoints again, it is unlikely the RBA will have enough confidence in the economy to hike rates. In which case, we would expect dwelling prices to rise by </span><span>more </span><span>than the model predicts, because of the reduced interest rate drag. </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div></body></html>

Price growth to stay positive with Australian housing prices in 2018: ANZ

<html><body><div title="Page 3">
<div>
<div>
<div>
<p>House price growth has continued to slow down, and tighter regulation is having the desired impact, suggests ANZ.</p>
<p>Their research predicts a further slowdown of price growth in 2018, in line with softer auction results and the expectation of higher interest rates </p>
<p>Housing price growth has slowed through the second half of 2017. Nationwide, prices are now just 5.5% higher than a year ago – much slower than the 11% y/y recorded through the middle of the year.</p>
<p><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/2017/12/house%20and%20unit%20prices.jpg" alt=""></p>
<p>The cooling market has been driven by regulatory changes. APRA’s tightening on investor borrowing and interest-only loans has resulted in higher interest rates for those borrowers, and lowered demand for housing.</p>
<p>Weaker auction results point toward further slowing as we move into 2018. Our forecast that the RBA will increase interest rates next year will also work to lower price growth. But if the RBA doesn’t tighten then prices will likely slow less than we forecast. Importantly, there is still nothing to suggest to us that prices are going to enter widespread declines.</p>
<p>Stamp duty discounts in New South Wales and Victoria are driving large numbers of first home buyers into the market. This is likely to provide some support to demand, and therefore prices.</p>
<p><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/2017/12/house%20price%20forecasts.jpg" alt=""></p>
<p>The deposit burden for FHBs continues to rise, and more people require assistance getting the deposit together. But once they are in the market, low interest rates mean that repayments are affordable, and the interest bill has been falling.</p>
<p>ANZ believe foreign investors have not been the main driver of price growth in recent years, as they account for only a small share of total housing turnover. However, foreigners do make up a significant component of the new housing market, meaning they have more impact in the construction space. </p>
</div>
</div>
</div>
</div></body></html>

No property crash, but slowdown in residential price growth predicted for 2018: ANZ Research

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p>ANZ has acquired the realAs website which exposes under-quoting among estate agents.</p>
<p>ANZ advised its purchase was to help home buyers access better information about the Australian property market.</p>
<p>RealAs was incubated in 2011 with an algorithm to predict property prices ahead of auction by the Melbourne buyer’s advocate David Morell, who claimed underquoting was “endemic."</p>
<p>"It’s grubby, it’s misleading and deceptive and it’s a fraud on purchasers," he said at the time.</p>
<p>RealAs says not all agents under­quote, but its chief executive since its 2014 launch, Josh Rowe said realAs aimed to "restore honesty" to pricing with its estimates.</p>
<p>The Collin Street based boss, who has been involved in the recent .au Domain Administration fracas, has long-viewed Victoria as "the underquoting capital of Australia."</p>
<p>In one expose he noted the hockingstuart Richmond agency was inaccurately quoting properties by 22 percent on average, ie a $1,000,000 agent quoted house would typically sell for $1,228,000, with Rowe subsequently advising the agency property price guidance had improved to 11 percent on average.</p>
<p>The website claims to have predicted prices within 5 percent of the eventual sale price over the 12 month period beginning September 2016 to August 17.</p>
<p>It recently advised the Sydney suburb of Eastwood topped the list for misquoting of property prices with underquoting being a way estate agents ­attracted bidders to an auction who assumed the price is within reach.</p>
<p>Melbourne’s Tullamarine was a close second.</p>
<p>Balwyn North ranked as the top suburb for accurate property price quoting in Melbourne and it was Blacktown in Sydney.</p>
<p>The REALas price prediction is calculated using the algorithm developed with RMIT University along with buyer feedback.</p>
<p>REALas.com will continue to operate independently as a wholly-owned subsidiary of ANZ.</p>
<p>The business was founded by David Morrell, who started the first buyers’ advocacy in Australia. He said the power was significantly stacked in the selling agent’s court and wanted to give buyers the ability to pay a fair price for their homes.</p>
<p>Morrell co-founded it with then Hawthorn Football Club president Andrew Newbold and former DDB creative director Jeremy Press.</p>
<p>It quickly upset agents and in 2015 Stockdale &amp; Leggo, a large Melbourne-based group of agencies, accused the property start-up of defamation.</p>
<p>The agency threatened legal action with lawyer John Gdanski, saying a televised report “had serious, reputational, commercial and legal repercussions for our client”.</p>
<p>“For the record, our client does not engage in the practice of underquoting property prices. Our client vehemently rejects this allegation,” it says.</p>
<p>RealAs chief executive Josh Rowe reportedly shrugged off the legal threat, saying it was baseless and symptomatic of an industry that was unaccustomed to scrutiny.</p>
<p>He noted he had not mentioned the firm in comments made for the report.</p>
<p>“Through our lawyers, we have rejected Stockdale &amp; Leggo’s allegations that we conveyed false, misleading and defamatory imputations about them,’’ he said.</p>
<p>“Stockdale &amp; Leggo’s attempt to mute a new voice for home-buyers will only reduce the trust home-buyers place in real estate agents.”</p>
<p>The site has 2900 followers on twitter, 4500 followers on Facebook and 150 followers on Instagram.</p>
<p>Commenting on the acquisition, ANZ Managing Director Customer Experience and Digital Channels, Peter Dalton said it was an important acquisition for ANZ's digital transformation.</p>
<p>"We know customers are increasingly turning to online resources for help as they navigate the Australian property market.</p>
<p>“It’s also a great success story of an Australian start-up, so we’re really pleased to be working with them and looking at how we might incorporate some of their features into ANZ’s products and services in the future.”</p>
<p>RealAs CEO Josh Rowe said he was thrilled that ANZ has recognised the value in what was built over the past six years.</p>
<p>Rowe said the deal had been in the works for a year as in mid-2016 they were looking for further investment from investors outside of the original group.</p>
<p>In 2014 when realAs won the Westpac Innovation Challenge it advised the site was getting about 10,000 unique monthly visitors, with half downloading the app.</p>
</div>
</div>
</div></body></html>

jchancellor-FAypfDUnLy

ANZ buys real estate honesty agitator, realAs

<html><body>
<div id="story-description">
<p class="selectionShareable">ANZ has tightened its borrowing rules on lending to apartment buyers in Brisbane and Perth.</p>
<p class="selectionShareable">It will impact of financing hopes of upcoming off the plan buyers with many from interstate.</p>
<p class="selectionShareable">The latest blacklist of the suburbs considered high risk comes a year after the mining towns of Queensland and WA were revealed as also being on the no-go zones for bank lending.</p>
</div>
<p class="selectionShareable"><span>A nervous </span>ANZ issued a revised list of postcodes to its mortgage brokers.</p>
<p class="selectionShareable">Brokers have been told loan to value ratios must not breach 80 per cent for both off-the-plan and existing apartment lending, The Australian reported.</p>
<p class="selectionShareable">The riskier Brisbane postcodes include inner city suburbs including Fortitude Valley, Newstead and Bowen Hills. </p>
<p class="selectionShareable">There are also some middle ring suburbs including Nudgee, Clayfield and Hendra.</p>
<p class="selectionShareable">In Perth, the list includes the CBD and East and South Perth.</p>
<p class="selectionShareable">The ANZ policy comes into effect on October 2.</p>
<p class="selectionShareable">The Australian reported it applies to apartments for both owner occupiers and investors in Brisbane and in Perth for investors on properties worth less than $3 million.</p>
<p>Under the tougher terms, borrowers must have a minimum deposit of 20 percent, which could equate to 30 percent if the pre-purchase valuation comes in lower than the exchange price dating from 2015 or 2016 when prices were higher.</p>
<p><span>Last year ANZ's was increased to more than 50 postcodes, concentrated mostly around Western Australia, Queensland and NSW mining towns, that described the suburbs as "not acceptable" for providing lenders mortgage insurance.</span></p>
<p><span> The number of unacceptable postcodes was 30 in a 2013 previous confidential list. </span></p>
<p>“This (September 2017) update for a handful of Brisbane and Perth locations is part of our ongoing efforts to ensure we are lending responsibly and in consideration of all our regulatory responsibilities,” an ANZ spokesperson told Australian Broker.</p>
<p><span>“We regularly look at a number of factors in relation to residential apartments to make sure we are meeting our responsibilities including supply and demand, rental yield, vacancy rates, and location.”</span></p>
<p> </p>
<p class="selectionShareable"><strong>ANZ’s list of postcodes:</strong></p>
<p class="selectionShareable"><strong>Brisbane:</strong> 4000, 4006, 4010, 4011, 4014, 4102, 4171.</p>
<p class="selectionShareable"><strong>Perth:</strong> 6000, 6004, 6104, 6151.</p>
</body></html>

ANZ's blacklists postcodes in Brisbane and Perth

<html><body>
<p>ANZ has forecast that the Reserve Bank will turn hawkish and raise rates twice next year.</p>
<p>Earlier, another Big Four bank, NAB said the central bank could raise rates twice next year from an earlier view of no hikes.</p>
<p>ANZ's new forecast was based on a more positive view of the domestic economy with both growth and inflation picking up, with unemployment rate expected to fall to 5.3 per cent by the end of 2017.</p>
<p>"In sum our outlook for 2018 is a touch more positive than before, reflecting a stronger outlook for non-mining business investment, the strength in public sector spending [not only in the infrastructure space] and a shallower dip in residential construction than previously expected," ANZ's head of Australian economics David Plank wrote in a note to clients, according to ABC news.</p>
<p>According to the ANZ, the real cash rate — the rate adjusted for inflation — was already negative and if growth accelerates and inflation picks up as expected, it will become even more negative and unnecessarily stimulatory.</p>
<p>"[The] RBA has progressively shifted to a hawkish outlook," Plank said.</p>
<p>NAB had echoed the same sentiment, saying GDP expectations have been revised up, unemployment revised down and consequently inflation moves up as well.</p>
<p>NAB's head of global research Peter Jolly noted the most confident thing he could say about the bank's change in forecast was it would not be the last.</p>
<p>"The big deal here is that having been on a declining trend since 2011, for the first time, NAB is now saying we have seen a turning point for Australia's interest rate cycle," Jolly said</p>
<p>However, the top two — Commonwealth Bank and Westpac, are staying pat on their forecasts, with CBA predicting one rise in the fourth quarter next year while Westpac sticking to a hold right through 2018.</p>
<p>In fact, Westpac chief economist Bill Evans said he does not share the optimism of either the other banks or the RBA about the economy.</p>
<p>"I think the RBA believes it will be raising rates next year," Evans said.</p>
<p>"They are very optimistic on growth, they believe they will see strong income growth."</p>
<p>But Evans thinks the RBA is wrong.</p>
<p>He recently wrote that “Westpac expects that concerns with weak income growth weighing on consumer spending and eventually the jobs market will dominate the policy debate in 2018”.</p>
<p>“The sustained application of macro-prudential policies is likely to continue to ease conditions in housing markets precluding any need for the Bank to raise rates next year.”</p>
<p>ANZ's David Plank concedes household consumption will remain relatively subdued, even if income growth picks up.</p>
<p>The bigger risk to his two-hike theory would be the on-going appreciation of the Australian dollar.</p>
<p>"Likewise, evidence that core inflation or wages are slowing again would rule out a rate hike in 2018."</p>
</body></html>

Anz

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Anz