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.

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;

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;

“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;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

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;

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;

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.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

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;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

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.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“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;

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.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

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;

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;

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”.

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;

Joel Robinson

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

<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.

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.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“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.”

<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" />

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.

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.

“We are DA approved now which is very exciting,” Sammut said.

“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.”

<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" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“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.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“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.”

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.

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.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

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.

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.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“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.”

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.

“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.”

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.

“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.”

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.

“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.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“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.

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.

&nbsp;

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

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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

<html><body>
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>
<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/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.35%20am.jpg" alt="">
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>
<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/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.43%20am.jpg" alt="">
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>
<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/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.28.51%20am.jpg" alt="">
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>
<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/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.29.01%20am.jpg" alt="">
Daniel Gradwell is the senior economist for <a href="https://www.anz.com.au/" target="_blank">ANZ</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

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

<html><body>
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>
<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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.10%20pm.jpg" alt="">
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>
<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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.41%20pm.jpg" alt="">
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>
<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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.50%20pm.jpg" alt="">
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.
<a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.00%20pm.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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.00%20pm.jpg" alt="">
</body></html>

Housing investor credit continues to ease: ANZ Research

<html><body>
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.
</body></html>

ANZ opens its first cashless branch for Brisbane

<html><body>
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.
 
</body></html>

jonathanchancellor-7SQnKwU6yx

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

<html><body>
<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>
</body></html>

National price growth to halve in 2018 with Brisbane to fall: ANZ

<html><body>
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.
</body></html>

ANZ six month profit down, lifts some interest rates

<html><body>
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.
</body></html>

jchancellor-FAypfDUnLy

ANZ to close loophole for investment home loan switch

<html><body>
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.
</body></html>

ANZ and NAB lift home loan rates

<html><body>
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. 
</body></html>

ANZ to expand Docklands presence with new Collins Street building

<html><body>
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="">
</body></html>

Anz

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Anz