Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens, rooftop open space and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Ceerose, founded by Edward Doueihi in 1998, has become one of Sydney's more active apartment developers, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

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Australian dwelling prices rose by a moderate 0.8% m/m in seasonally adjusted terms in July, which was the strongest monthly result since February.
<a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.35%20am.jpg" target="_blank">Click to enlarge</a>
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The market remains healthy despite tighter regulation and higher borrowing costs, although auction results do point toward a further cooling in the market in coming months.
APRA’s macroprudential regulation and the subsequent increases in borrowing costs (primarily for investors) have been felt in the market, with annual dwelling price growth slowing to 10.4% y/y, down from the 13% peak earlier in the year.
Interestingly, Sydney prices have slowed markedly, but Melbourne prices have been more resilient and are still 16% higher than a year ago.
<a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.43%20am.jpg" target="_blank">Click to enlarge</a>
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As we noted in this morning’s Canadian housing insight, British Columbia’s experience suggests that regulation can indeed slow the housing market, but questions remain over the sustainability of such movements.
Subsequent tightening in Ontario has also had a negative impact on prices in recent months, and we will be watching closely to see if these moves become permanent.
<a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.51%20am.jpg" target="_blank">Click to enlarge</a>
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In Australia, weaker auction results in recent months suggest that price growth will continue to ease, especially in Sydney.
But there is no suggestion that prices will materially fall, as per Canada.
Yesterday’s private credit data showed that while investor credit growth has slowed in response to the regulatory changes, there has been an improvement in owner-occupier borrowing.
This suggests that overall sentiment in Australia’s property market remains positive.
<a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.29.01%20am.jpg" target="_blank">Click to enlarge</a>
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Daniel Gradwell is the senior economist for <a href="https://www.anz.com.au/" target="_blank">ANZ</a>.
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j.ballantyne1990-6AQqhLzZaK

Australian house prices still solid despite regulation: ANZ's Daniel Gradwell

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Australian private sector credit recorded a solid increase in June, led by a rebound in the business sector after several months of weakness.
The divergence between investor and owner-occupier housing credit continued, with the former still slowing in response to APRA’s macroprudential regulation.
This trend is likely to still have further to run.
<a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.10%20pm.jpg" target="_blank">Click to enlarge</a>
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Housing credit posted another 0.5% m/m rise in June, although at the margin (2 decimal places) this was the slowest monthly increase in a year.
The slowdown in investor borrowing continued, and quarterly annualised growth now sits at 6.0%.
This reflects a significant cooling from the recent peak of 9% growth reached in December 2016, suggesting that APRA’s macroprudential regulation continues to bite housing investors.
<a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.41%20pm.jpg" target="_blank">Click to enlarge</a>
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On the other hand, credit to owner-occupiers again posted faster monthly growth than the investor segment.
The divergence between the segments kept total annual housing credit growth at 6.6% y/y, reflecting a stabilisation at a marginally higher rate than at the start of the year.
<a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.50%20pm.jpg" target="_blank">Click to enlarge</a>
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Business credit recorded the strongest monthly rise since December 2016, up 0.9% m/m.
This is a welcome result after a period of weakness, but we do not expect it to be sustained indefinitely.
Business finance approvals have remained weak in recent months, and suggest that growth in the stock of business credit is likely to ease from here.
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Housing investor credit continues to ease: ANZ Research

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ANZ has opened a cashless branch in Brisbane’s CBD, its first for the city, as customers continue to choose online and digital banking options instead of cash.
The new branch in George Street is ANZ’s seventh cashless branch across Australia since it opened the first one in Sydney’s Bondi Junction in March 2016.
“Our customers are embracing the digital changes we’re rolling out across our network as they continue to use cash less for every day purchases," managing director Retail Distribution, Catriona Noble said.
“The simplicity of internet banking and digital apps means many customers often don’t need cash, and in some cases don’t need a physical wallet at all with the availability of mobile payments where they can pay with their smartphone.”
The new George Street branch does not offer traditional telling or over-the-counter cash handling, but staff are available to help customers deposit and withdraw cash through the bank’s SMART ATMs.
The branch staff members are available to help customers with bigger life decisions such as saving towards financial goals, home ownership or running a small business, which many customers still prefer to discuss face-to-face.
The new Brisbane branch is the 75th digital branch ANZ has opened in the past three years, with another 45 scheduled for 2018.
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ANZ opens its first cashless branch for Brisbane

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Close on the heels of Citi’s senior economist warning about Australia’s overpriced housing market, the chief executive of ANZ has voiced similar concerns.
Home prices are “very inflated,” ANZ’s CEO Shayne Elliott told Bloomberg but said the probability of an outright crash is “really low.”
Elliott made his comments with Bloomberg Television’s Stephen Engle in Beijing. 
In Sydney, home prices have risen 75 per cent in the past five years, and the city has been ranked only behind Hong Kong as the world’s least affordable housing market.
Asked whether a crash is looming, Elliott said it’s “a really low probability, but it is certainly something we stress test a lot, and think about.”
Elliot’s caution is the latest in warnings about Australia’s overpriced housing market. 
Citigroup Inc’s chief economist Willem Buiter recently said Australia needed to fix its “spectacular housing bubble” with tougher regulatory measures.
Last month, S&amp;P Global Ratings downgraded the credit scores of almost all of Australia’s financial institutions, warning of a “sharp correction” in property prices.
The Big Four lenders, including ANZ, were spared the downgrade because S&amp;P said it assumed the government would step in to provide support if needed.
Earlier this week, a research report by ANZ said housing price growth peaked earlier this year and <a href="/news/national-price-growth-to-halve-in-2018-with-brisbane-to-fall-anz">will slow to 1.9 per cent </a>by next year, though population increase and demand for housing will ensure growth stays positive in Sydney and Melbourne.
Elliott was also critical of the recent Budget announcement of a $6.2 billion levy on the country’s large lenders, though he said the priority now should be to work out the best way to implement the measure.
“It is regrettable, we don’t think it is good policy, we do think it will have unintended consequences. But we’ve seen very little value in bleating about it,” Elliott told Bloomberg.
Despite Elliott’s criticism, ANZ has generally taken a more conciliatory approach to the levy than some of the country’s other lenders. National Australia Bank Ltd. Chairman Ken Henry described it as “simply incoherent,” while Commonwealth Bank of Australia CEO Ian Narev said it was “policy concocted on the run”
Elliott said there was no doubt the outlook for earnings is getting “tougher.” The lender’s first half-profit missed estimates as its revenue growth flat-lined and its net interest margin fell to its lowest since the global financial crisis.
“What’s driven bank earnings over the last 20 years has been an increase in household leverage which has been afforded because of a lowering of interest rates. That’s just not going to drive the future,” Elliott said, adding that for consumers used to boom times, even slower growth can feel like a recession.
 
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jonathanchancellor-7SQnKwU6yx

Property prices inflated but possibility of crash low: ANZ chief executive

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<div>
Housing price growth peaked earlier this year and will slow to 1.9 per cent by next year, ANZ says in a new research report.
Population increase and demand for housing will ensure growth stays positive in Sydney and Melbourne.
But lending constraints tighten and other measures such as taxes on vacant properties will constrain growth.
The national pace of price appreciation will dip to to an annual 4.4 per cent this year, the ANZ Australian Housing Update says.
Prices will fall in Brisbane next year, however, due to the "significant" volume of new supply.
It tipped home values in Perth and Darwin continue to fall.
Housing markets in Canberra, Hobart and Adelaide will grow slightly faster than the nationwide average through 2018, Fairfax's Australian Financial Review noted.
<a href="https://www.propertyobserver.com.au/images/2017/06/06/1496706214283.jpg" target="_blank">Click to enlarge</a>
<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/2017/06/06/1496706214283.jpg" alt="">
</div>
<div><cite>ANZ Australian Housing Update</cite></div>
<div>
"We anticipate that Australia's housing market will broadly cool from here," economists Daniel Gradwell and Jo Masters wrote.
"We believe that price growth will slow sharply due to a combination of policy changes and macroprudential regulation."
The report also predicts housing construction to "gradually soften."
"We think building approvals could fall by another 5-10 per cent in the next six to 12 months," the report said.
The two biggest risks remain over-supply of new apartments in Brisbane and "to a lesser extent", Melbourne as well as settlement failures, the bank said.
</div>
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National price growth to halve in 2018 with Brisbane to fall: ANZ

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ANZ bank has reported a $3.4 billion cash profit for the six months to March 31 and lifted interest rates on home loan deals.
The profit figure is down from previous expectations of $3.5 billion.
ANZ's move to lift interest rates on home loan deals follows the Commonwealth Bank and Westpac, who increased interest rates on both owner occupier and investor loans.
Owner occupiers and investors with interest-only fixed rate deals may be hit with increases of 0.4 percent on 2, 4, and 5 year fixed owner occupier interest-only loans the rates will rise on the bank’s Breakfree products.
Three-year owner occupier interest-only loans will rise by 0.3 percent to 4.49 percent.
For investors on a three-year fixed-rate interest-only Breakfree deal the rate will rise 0.3 percent 4.69 percent.
The three-year fixed rate owner occupier principal and interest deal will fall by 0.2 percent to 3.99 percent.
On a three-year fixed rate investor principal and interest deal the rate will fall by 0.1 per cent to 4.44 percent.
Mozo spokeswoman Kirsty Lamont said the increases by ANZ are a result of the financial regulator, the Australian Prudential and Regulation Authority limiting their interest-only lending.
“With the Federal Reserve jacking up rates in the US and inflation just scraping within the Reserve Bank target, we expect a cash rate increase in the next 12 months which means these fixed rates are unlikely to be around for a long time,” she said.
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ANZ six month profit down, lifts some interest rates

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ANZ is closing a loophole by tightening rules for investors attempting to switch their investment loan to a standard homeowner loan.
ANZ head of national broker distribution Simone Tilley has advised mortgage brokers it would like to "reinforce that it continues to accept both owner-occupier and investor borrower applications".
But it is also closing down a popular loophole where borrowers switch from investor loan rates to cheaper owner-occupier rates.  
From today, borrowers changing their investment loan to a home loan will need to provide supporting documents to prove it is not being used for investment purposes.
These will include evidence such as utility bills and car licence details.
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jchancellor-FAypfDUnLy

ANZ to close loophole for investment home loan switch

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A new RateCity.com.au study shows 33 lenders – including two major banks, ANZ and NAB, – have lifted some of their popular home loan rates in recent weeks.
A total of 382 home loan rates, including 265 fixed and 117 variable products, have been hiked since January 1.
Peter Arnold, data insights director at RateCity.com.au, said lenders had lifted home loan rates by as much as 0.60 percentage points.
“After several years of record low rates, Australian home owners are facing unwelcome news to start the year as more banks quietly raise rates on their mortgages,” he said.
“The banks began lifting home loan rates late last year, with the biggest hikes being applied to their fixed deals at the time.
As a result, most of the impact last year was felt by new customers who were looking to fix their home loans and were prepared to cop the higher rates on the chin. But that's about to change.
The difference now is that more variable rates are under attack, with 117 hikes in the last five weeks largely hitting existing customers.
This is just the start for higher rates and we expect this trend to continue as banks face higher lending costs both from nervous international funding sources and increased pressure from our local regulator to hold more capital.
Variable borrowers should get set for higher expenses this year or be prepared to switch," he said.
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ANZ and NAB lift home loan rates

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ANZ has signed an agreement with Lendlease to house more than 2000 staff in a new major building in Docklands at 839 Collins Street.
The Big Four bank will be the anchor tenant - leasing 26,500 square metres - at the new building, expected to be completed in the first half of 2019. It will be a 6-star Green Star environmental rated building. 
It will be adjacent to ANZ’s global headquarters. 
ANZ Group general manager - property, Kate Langan, said: “Having two adjacent buildings across one Docklands location will enable us to create a single ANZ campus that will address future workplace demands while also allowing people to work together more easily and creatively.”
“This is the last available commercial building in Victoria Harbour which features the highest concentration of Green Star-rated buildings in Australia. We think it will be great for our staff as well as having significant environmental benefits,” she said.
The new lease follows the sale of ANZ’s office tower at 100 Queen Street Melbourne to GPT Wholesale Office Fund, which the bank is leasing back with an initial term until June 30, 2019.
ANZ has a long history in Melbourne. Docklands is home to ANZ’s global headquarters while the bank’s National Trust listed historic heart at 388 Collins Street, the Gothic Banking Chamber and Verdon Chambers (the old Bank Manager’s Residence), have been a recognised part of the city’s urban fabric since 1886. 
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ANZ to expand Docklands presence with new Collins Street building

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New South Wales continues to grow at an above-trend rate according to the ANZ’s Stateometer, but momentum has eased further and growth may soon be back at trend.
The Stateometer suggests that Victoria’s economy is growing at a slightly above-trend rate. Queensland’s growth has stabilised at a well-below trend rate, fully unwinding the significant improvement in late 2015. Growth in Western Australia remains very weak, with the recent small improvement unwound. 
The Northern Territory is also growing at a below-trend rate, but momentum has improved over the past months.  Tasmania and South Australia are both growing at near-trend rates. Growth in the Australian Capital Territory has accelerated and it is now well above trend.
<a href="/images/2016/09/15/anz%20trend.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/15/anz%20trend.png" alt="">
<a href="/images/2016/09/14/anz%20trend.png" target="_blank">Regional Overview</a>
New South Wales 
NEW SOUTH WALES GROWTH SLIDES FURTHER AND MAY SOON BE BACK AT TREND
<ul>
<li>The smoothed New South Wales index remains positive, suggesting economic activity is expanding at above trend pace.</li>
<li>However, the index continues to fall from the thirteen-year high reached in 2015, reflecting a broad slowdown in the underlying indicators.</li>
<li>Given the weakness in the Stateometer’s components, we see a risk that the smoothed index falls further in August, where growth may soon be back at trend.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.57.59%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.57.59%20PM.png" alt="">
Victoria
VICTORIA CONTINUES TO GROW AT AN ABOVE- TREND PACE
<ul>
<li>The Victorian index suggests that the state’s economy is still expanding at a slightly above-trend rate, with the main driver of growth being the buoyancy of the labour market.</li>
<li>Unless the strength in the labour market translates into higher spending, we think that a significant improvement in the smoothed index is unlikely.</li>
<li>The underlying statistics suggest that the smoothed index will be little changed in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.34%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.34%20PM.png" alt="">
Queensland
QUEENSLAND'S ECONOMY REMAINS WEAK
<ul>
<li>Queensland’s economic growth has been steadily decelerating over the past few months and is now well below trend. This means that the index has fully unwound the significant improvement in late 2015.</li>
<li>The fall in the smoothed index reflects a broad- based slowdown in the underlying series, with the weakness in the labour market being the prime driver.</li>
<li>The underlying data suggest to us that there is a risk that growth will stay weak in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.41%20PM.png" alt="">
South Australia SOUTH AUSTRALIA IS NEAR TREND GROWTH
<ul>
<li>The smoothed index for the South Australia’s economy has risen further and is almost at the zero mark signifying trend growth.</li>
<li>The significant improvement in labour market conditions over the recent months has supported the rise in the smoothed index.</li>
<li>Meanwhile, the underlying data suggests to us some upside risks for growth in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.49%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.49%20PM.png" alt="">
Western Australia
WESTERN AUSTRALIA’S SMALL GAIN PROVES SHORTLIVED
<ul>
<li>The recent small gain in the smoothed index for Western Australia has been unwound and the Stateometer remains close to the seven-year low reached in January, indicating well below trend pace growth.</li>
<li>The weakness in the underlying data is broadly based.</li>
<li>Based on the underlying data, we see little change in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.55%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.58.55%20PM.png" alt="">
Tasmania
TASMANIA’S GROWTH BROADLY STABILISES AT A NEAR-TREND RATE
<ul>
<li>Tasmania’s economic growth has improved slightly over recent months and has stabilised at a rate that is just below trend.</li>
<li>As the labour market remains weak and slowed further in July, we see a risk that the earlier improvement may be partly unwound.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.03%20PM.png" alt="">
Northern Territory
THE NORTHERN TERRITORY’S MOMENTUM CONTINUES TO IMPROVE
<ul>
<li>After reaching a five-year low in April, the territory’s smoothed index has improved slightly. This suggests to us that growth in the Northern Territory may have passed a turning point.</li>
<li>The more positive momentum has been driven by improvement in the labour and household sectors.</li>
<li>Reflecting the underlying data, we see little change in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.10%20PM.png" alt="">
ACT
THE ACT'S GROWTH ACCELERATES
<ul>
<li>Economic activity in the Australian Capital Territory is growing at an above-trend rate and accelerated sharply in July, with the smoothed index being at its highest level since February 2011.</li>
<li>The key contributor to the improvement in the index remains the buoyancy in labour market conditions.</li>
<li>The underlying data suggest that the Stateometer will improve further in August.</li>
</ul>
<a href="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.16%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/14/Screen%20Shot%202016-09-14%20at%206.59.16%20PM.png" alt="">
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