The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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There's been a rush of applicants from first home buyers seeking to secure a spot to buy with a deposit of as little as 5 percent under the new Federal Government home loan deposit guarantee scheme.
That's not surprising, but there are plenty of spots still available.
Especially as 5000 spots became available on February 1 with the 25 non-bank and regional lenders including the Bendigo Bank, Australian Military Bank and Community First Credit Union. 
The number of applicants across Australia is capped at 10,000 every financial year, but as the initiative began on January 1, there will be the double opportunity during 2020, ie from July 1.
It has been reported that most of the opening 3000 spots have been taken, but many of these are really pencilled in reservations that won't ever see an actual purchase.
Those intending buyers already on the list with lenders will next need to get through the still onerous bank approval process.
And then they will need to find a suitably-price property within the ensuing 90 days.
That might just be difficult as it appears fresh 2020 listings are only slowing coming to market.
Even with 20,000 participants in 2020, it was always likely to be a squeeze as some 80,000 other FHBs will still need to find their own borrowing arrangements.
Sydney FHBs will need to find properties costing less than $700,000 under the scheme.
The same price cap will also apply to NSW regional centres with a population of 250,000 plus, namely Newcastle, Lake Macquarie and the Illawarra around Wollongong.
The scheme to be known officially as the First Home Loan Deposit Scheme (FHLDS) will available only to FHBs with an annual income of up to $125,000 or couples with a combined $200,000 per year who haven't saved the standard 20 percent deposit.
Prime Minister Scott Morrison and Treasurer John Frydenberg announced the scheme just days before the May 2019 election, when the property market was in a downturn.
The Prime Minister expressed concern the time it took to save a home deposit was one of the barriers to home ownership.
There is the real risk that competitive tension will see prices rise as FHBs expeditiously seek out their first step on the property ladder.
The National Housing Finance and Investment Corporation (NHFIC) is overseeing the scheme in a vastly different property market, at least in Sydney and Melbourne.
It needs to wise to market shifts and to smartly recommend adjustments so that its policy objectives are met.
<a href="http://ratecity.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://RateCity.com.au&amp;source=gmail&amp;ust=1580769830838000&amp;usg=AFQjCNFQhd3z8C9Xv2hFiUVsHTs_sYcZXA">RateCity.com.au</a> recently calculated a person buying a $500,000 property with a 5 per cent deposit instead of a 20 per cent deposit would need $75,000 less initially, but with a larger loan, their monthly mortgage repayments would be $329 extra a month and they would pay $43,000 in extra interest over 30 years, based on the rate of 3.32 per cent.
Corelogic researcher Eliza Owen noted paying more interest on a low deposit loan makes more sense "if property values are going up.
"By accessing a property sooner, the asset has longer to accumulate capital growth that may outweigh the higher level of interest paid." 
Sally Tindall, research director at RateCity, says buyers need to "go in with eyes wide open because it’s peppered with potential drawbacks."
Meanwhile ME Bank’s latest sentiment report, conducted last month, shows FHBs’ hopes haven’t been crushed by rising prices, with more than half planning to buy this year, compared to the 38 percent who were hopeful in late 2019.
This article first appeared in The Daily Telegraph.
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jchancellor-FAypfDUnLy

First home buyers rush Low Deposit Scheme, but plenty more spots coming

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New data released today by the Housing (Supply) Minister shows that the Federal Government’s First Home Loan Deposit Scheme is already helping millennials achieve their home ownership aspirations and giving a boost to regional areas.
The data shows that 34 per cent of applicants are aged between 25 and 29, while 76 per cent of applicants are aged between 18 and 34, with millennials making up the largest share. This represents 3,055 first home buyers taking the opportunity to buy their first home sooner.
These figures ring true with research undertaken for HIA in 2018 which found that 92 per cent of renters aspire to own their own home, yet only 49 per cent believe they will achieve that dream. The Scheme is clearly helping.
Where first home buyers are looking to live is also encouraging. A large number of applicants, including millennials, are looking to buy outside the major cities of Sydney, Brisbane and Melbourne. This suggests that people are starting to think outside the box (and the capital cities) when they think about buying their first home.
The house price cap in these locations is on average around $400,000 and even then the data shows most borrowers are seeking approval to buy houses below that maximum price.
Free standing houses are the most popular purchase with the scheme, which tends to suggest people are buying existing homes, rather than new homes. This is something HIA has raised with the Government and we will continue to investigate as the Scheme matures to ensure first home buyers have a choice.
There is no simple or single solution to increasing the rates of first home ownership but it is important to ensure that at the heart of any incentive scheme, greater housing supply is a core objective. Achieving this helps both first home buyers and those renting and saving their deposit.
No doubt this strong early take up will encourage the Government to think about increasing the number of places for the scheme in 2021.
All Australians seek to have secure housing options. Home ownership is an important fundamental of achieving that and increasing housing supply will have trickledown effect for the economy as whole.
HIA is heartened to see the Scheme receiving so much interest and so many first home buyers now being able to achieve their home ownership dream.
KRISTIN BROOKFIELD is the Chief Executive of Industry Policy at HIA
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First home buyer scheme supports regional areas and millennials: HIA's Kristin Brookfield

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The Australian housing market ended 2019 on a firm footing, with NAB’s Residential Property Index climbing to its highest level in nearly 6 years.
NAB's survey expectation is for price growth to accelerate in all states in 2020-2021, led by NSW and VIC.
Property professionals also see price growth overtaking rents for the first time in 2 years, suggesting yields will compress in the future.
With mortgage rates falling and the new First Home Buyers (FHB) Loan Deposit Scheme taking effect from January 2020, FHBs dominated sales in new housing markets and increased their market share in established markets. Meanwhile Foreign buying activity was again relatively subdued.
NAB's Alan Oster said, "Tight credit remains the biggest constraint on new housing development, and access to credit the biggest impediment for buyers of existing property, but property professionals indicated their impact on the market was less severe in the final quarter of 2019."
NAB’s forecasts on residential prices
NAB’s view is that while prices have rebounded more strongly than expected in the second half of 2019, dwelling price growth will slow in an underlying sense in 2020 and 2021 in Sydney and Melbourne.
Mr Oster said, "Outcomes for the other capitals are likely to be more mixed, driven by state specific factors."
"Overall, we expect nationwide dwelling prices to rise by around 4% in 2020 before growth slows to around 2½% in 2021."
"Low interest rates are expected to continue to provide support, as is the low level of unemployment and still healthy population growth in Sydney and Melbourne, however affordability constraints will arise as prices reach their previous peak," he added.
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FHB's to play a key role as foreign buyers remain subued: NAB

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The National Australia Bank has been announced as the first lender on the lending panel for the government’s first-home loan deposit scheme.
They have committed to not charging eligible customers higher interest rates after the housing stimulus package begins on January 1.
NAB chief customer officer Mike Baird said the bank would update eligible customers in the lead-up to January 1.
<div class="storysegment2 segmentContentFull">
Mr Baird said NAB was “proud” it had been selected to partner the government and described it as a “great endorsement” of the bank’s home loan offering.
“This scheme is a fantastic way of helping even more customers, allowing them to potentially save thousands of dollars on their mortgage,” Mr Baird told The Australian.
NAB has been offering special rates for first-home buyers, with a 2.88 per cent annual rate fixed for two years, since 2017.
</div>
The NHFIC will supervise the scheme, overseeing rules that permits only two major lenders to be appointed to the lending panel. The big bank will only be entitled to receive up to 50 per cent of the 10,000 guarantees allocated per financial year.
There will also be a range of non-major lenders appointed to the lending panel.
Loan applications for the scheme are not yet open.
Information about the Scheme is available on NHFIC’s website including an online tool to assist prospective first home buyers determine the relevant property price threshold that will apply to any potential purchases. 
Additional eligibility tools are being developed and will be launched publicly.
First-home buyers wanting to buy next year using the new home loan deposit scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne, $500,000 in Canberra and $475,000 in Brisbane.
There are regional limits too.
The scheme will apply to owner-occupied loans for FHBs with an annual income of up to $125,000 or couples with a combined $200,000 per year.
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NAB to offer competitive home loans for FHBs in government’s first-home loan deposit scheme

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EXPERT OBSERVER
According to ABS housing finance data for August 2019, first home buyers comprised the largest proportion of national owner occupier mortgage activity since early 2012.  
The data showed first home buyers comprised 29.8% of the national market for owner occupier home loans; almost five percentage points above the decade average of 25%.
 A similar trend can be seen across every state, with first home buyers a larger proportion of the market relative to the decade average. There are a variety of factors that have provided first time buyers with a leg up into the housing market.  Housing affordability has improved through the recent housing downturn, mortgage rates have come down, home loan servicing rules have been relaxed and some states have provided additional incentives for first home buyers in the form of stamp duty exemptions or discounts as well as existing first home buyer grants which generally apply to the purchase of new dwellings across most states.  
<img src="https://www.corelogic.com.au/sites/default/files/2019-10/first_home_buyers_as_a_of_all_owner_occupier_mortgage_commitments_nationally.png" width="600" height="251">
First home buyers, as a % of all owner occupier mortgage commitments nationally
There’s also the fact that first home buyers haven’t had to compete as fiercely with investors, with investor activity generally trending lower since peaking in 2015 at 43% of mortgage demand.  The August update shows investors comprised only 26% of mortgage demand which is well below the decade average of 34%.
<img src="https://www.corelogic.com.au/sites/default/files/2019-10/first_home_buyers_nsw_and_vic.png" width="600" height="266">
First home buyers are the most active across the Northern Territory and Western Australia where this segment of the market comprises 45% and 37% respectively of owner occupier mortgage demand.  These are also the two regions where housing values have fallen the most, providing a substantial improvement to housing affordability.  Dwelling values are down 27% since peaking across the Northern Territory and 23% lower since peaking across Western Australia.  
<img src="https://www.corelogic.com.au/sites/default/files/2019-10/first_home_buyers_qld_and_sa.png" width="600" height="262">
 The regions where first home buyers are the least active are South Australia and Tasmania where first time buyers comprised 22% and 24% of owner occupier mortgage demand in August.  Despite being the lowest of any state, first home buyer participation remains above the decade average in these regions. 
<img src="https://www.corelogic.com.au/sites/default/files/2019-10/first_home_buyers_wa_and_tas.png" width="600" height="241">
Looking forward it’s likely first home buyer’s will reduce as a proportion of overall market activity.  Housing prices are once again rising across most regions of the country while growth in household incomes remain sluggish, which will create renewed housing affordability pressures in markets where home values are rising faster than incomes.  
<img src="https://www.corelogic.com.au/sites/default/files/2019-10/first_home_buyers_nt_and_act_0.png" width="600" height="246">
 Additionally, investor activity is likely to ramp up as the prospects for capital gain start to become more widespread and the spread between rental yields and mortgage rates remains around record lows.  Capital city gross rental yields are tracking at 3.7% compared with three year fixed rate mortgages for investment purposes tracking around 3.8%.  In the past, rising home values and greater participation from investors has seen first home buyer activity reduce. The First Home Loan Deposit Scheme, which goes live in January next year is likely to be oversubscribed, however we aren’t expecting this program to make a substantial difference to overall first home buyer participation rates considering the scheme is capped at 10,000 buyers, which equates to less than 10% of first home buyers numbers over the past year.
TIM LAWLESS is the CoreLogic Head of Research
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First home buyers accounted for largest segment of mortgage activity since 2012: Tim Lawless

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The Federal Government’s decision to widen the first home buyers scheme will have amazing benefits to Victorian real estate.
The Real Estate Institute of Victoria has welcomed the plan unveiled on Sunday by Treasurer Josh Frydenberg, which will encourage first-home buyers on lower incomes to enter the property market with a deposit of just 5 per cent.
In Melbourne and Geelong, a 5 per cent deposit will mean that a potential homeowner would only need to save $30,000 to purchase a property worth $600,000.
While across regional Victoria, first home buyers grants are capped to homes worth $375,000.
Sunday’s announcement had created a lot of excitement across Victoria’s real estate sector.
Our market will be boosted by new buyers, meaning further transactions in our community.
This week’s news brought a lot of smiles to the faces of those involved in Victorian Real Estate.
The Victorian real estate sector is already in healthy shape, the recent REIV Median figures for the September Quarter proving that our market is bouncing back, with Melbourne’s growth of 4.5% being the highest quarterly result since March 2017.
The expanded First Home Buyers scheme comes into effect in January 2020, will make it a lot easier for buyers looking to get into the rapidly growing markets in Melbourne and Geelong.
Right now, is an amazing time for local sellers, with an increase in buyers we will need a lot more homes on the market.
If you were tossing up selling your home, now is the perfect time to do so.
GIL KING is CEO of REIV
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First home buyers expansion is great news for Victorian real estate: REIV's Gil King

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The Australian dream is seeing first home buyers seek to buy a small apartment and trade up within five years, according to the Genworth First Home Buyer Sentiment Report.
The Report based on a survey undertaken in June and July 2019, of 2,001 prospective first home buyers and 1,008 Recent first home buyers across Australia, reveals that almost three in four prospective first home buyers believe now is a good time to buy their first home, with one in two citing recent “falling property prices” as the primary reason.
Many are keen to capitalise on the 8.4% decline in median house prices since 2017 with three in five (~60%) planning to buy now with a less than 20% deposit compared to just under one in two (47.4%) Recent first home buyers who bought their first property with less than a 20% deposit.
To bridge the deposit gap Genwroth found, three in four (75.1%) are proposing to apply for the Federal Government’s ‘First Home Loan Deposit Scheme’; 27.5% are purporting to ask their parents or family for assistance and 15.8% are planning to use lenders mortgage insurance.
<img src="https://www.urban.com.au/images/2019/9/23/Genworth%20FHB%202.JPG" alt="">
They said, "those numbers are in line with many other first home buyers with roughly 70% reporting that they did not fund 100% of their deposit from their own savings."
"The majority (56.9%) of these relied on parental or family assistance (via gifts, guarantees and loans) to supplement their deposit. Lenders mortgage insurance (LMI) was also a popular option with more than one in three (35.6%) Recent first home buyers using LMI to secure a home loan with a less than 20% deposit."
"Whilst parental and family support is understandable, the increasing use of parental guarantees is cause for concern given the “knock-on” effect in the event of a borrower default," Genworth added.
<img src="https://www.urban.com.au/images/2019/9/23/Genworth%20FHB%201.JPG" alt="">
One in three (32.3%) prospective first home buyers plan to sell within five years - more than double the proportion of recent first home buyers (15.8%) – reflecting a more pragmatic approach to entering the market sooner by purchasing an “entry level” property and trading up in a few years. 
Download a copy of <a href="http://www.genworth.com.au." target="_blank">The Genworth first home buyer Sentiment Report</a> for September 2019. 
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Three in four prospective first home buyers believe now's a good time to buy: Genworth

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EXPERT OBSERVER
Under the Coalition’s last desperate roll of the dice, first home buyers will only need a five per cent deposit for a mortgage, compared to the usual 20 per cent. However, this is a short-term gain, for long-term pain in my opinion.
Although it makes it easier to buy now, it also potentially burdens them with larger monthly repayments and the prospect of having to pay thousands more in interest to the bank over the lifecycle of a loan.
Ultimately, we want the younger generations to have a grasp on the property ladder – but we don’t want to see them drowning in debt.
With the most recent ABS data showing a decline in first home buyers entering the market – down 0.5 per cent in March and having fallen 10 per cent from March a year ago – I believe the Coalition’s scheme is dancing around the real issue: housing affordability.
In the final days that they have left to scramble for votes, both the Coalition government and Labor are focusing on the wrong elements to improve accessibility to home ownership, with both suggesting band aid solutions.
Modern politics has basically become a popularity contest – and, unfortunately, the Liberal party’s pitch to young voters is not about the long-term viability of the property market.
By cutting the time it takes to save for a deposit by at least half or more, as they said they would do, they’re attempting to appeal to a disengaged audience.
Labor’s negative gearing policy is divisive and does not hold the solution, either. The narrative that negative gearing concessions only benefit the wealthy is factually inaccurate, as two thirds of beneficiaries have a taxable income of under $80,000 per year.
It’s high time there are bilateral discussions between the main political parties – with a long-term view of how to solve the housing affordability crisis.
DOUGLAS DRISCOLL, is the CEO of <a id="LPlnk409164" href="https://www.starrpartners.com.au/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Starr Partners</a>
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Coalition's last ditch FHB scheme will hurt not help first home buyers: Douglas Driscoll

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The weekly ANZ-Roy Morgan consumer confidence rating fell by 1.3 per cent after rising by 2.6 per cent in the previous week (the biggest increase in 7½ months). 
Number of home loans: The value of lending to households rose by 2.6 per cent in February after falling 2.4 per cent in January. 
First-home buyers: In seasonally-adjusted terms, the share of first-home buyers in the home lending market hit 6-year highs of 27.1 per cent in February.
The consumer confidence figures have implications for retailers, and other consumer-focussed businesses.
The lending figures have implications for builders, housing-reliant businesses, finance providers, retailers, and companies dependent on consumer and business spending.
 What does it all mean?
Consumer confidence can be over-analysed. Sentiment apparently fell last week after rising in the previous week. Overall, however, confidence is above the lows recorded a month ago and still above longer-term averages. Interest rates remain stable as does the Aussie dollar, and while tax cuts lie ahead, home prices are still falling in Sydney and Melbourne. So consumers remain cautiously optimistic. Generally people feel good about the economy and the outlook for their finances but aren’t feeling especially rich at present and thus in no mood to spend up big. 
After falling almost 9 per cent in the prior three months, loans to households rose 2.6 per cent in February. Owner-occupier home loans, investment home loans, refinancing and personal loans all bounced in the month. And topping the good news is that the share of first-home buyers in the market is holding near 6-year highs. Lower home prices are certainly being embraced by one group of Aussies. What do the figures show? Consumer Sentiment
The weekly ANZ-Roy Morgan consumer confidence rating fell by 1.3 per cent to 113.2 points after rising by 2.6 per cent in the previous week (the biggest increase in 7½ months). Consumer sentiment is above the longer term average of 113.1 points since 1990. 
 Three out of the five major components of the index rose last week: 
The estimate of family finances compared with a year ago was down from +5.0 points to +3.2 points; 
The estimate of family finances over the next year was up from +20.7 points to +22.8 points;  Economic conditions over the next 12 months was up from +7.0 points to +7.7 points; 
Economic conditions over the next 5 years was up April 9 2019 2 Economic Insights: First-home buyer activity at 6-year high from +10.7 points to +11.6 points; 
The measure of whether it was a good time to buy a major household item was down from +30.2 points to +20.6 points. 
The measure of inflation expectations rose from a record low of 3.6 per cent to 4.3 per cent. Lending 
The Australian Bureau of Statistics reported: “In seasonally adjusted terms, lending commitments to households rose 2.6 per cent in February 2019, driven by new lending for owner occupier dwellings (up 3.4 per cent). There were also rises for lending to households for refinancing (2.6 per cent), investment dwellings (0.9 per cent) and personal finance (0.4 per cent).The February rise in lending to households follows a 2.3 per cent fall in January 2019.
In seasonally adjusted terms, the value of new lending commitments for owner occupier dwellings is down 13.9 per cent from February 2018 and the value of new lending commitments for investment dwellings is down 29.1 per cent from February 2018. 
In trend terms, lending commitments for owner occupier dwellings fell 1.0 per cent and investment dwellings fell 2.2 per cent in February 2019. 
The number of lending commitments made to owner occupier first home buyers (seasonally adjusted) rose 1.8 per cent in February 2019. This outpaced the growth in the number of lending commitments made to non-first home buyers (up 1.6 per cent).
In trend terms, lending to businesses fell 2.4 per cent in February and is down 3.3 per cent from February 2018.” 
The share of first home buyers (excluding refinancing) rose from 26.8 per cent to 27.1 per cent in seasonally adjusted terms in February, a 6-year high.
Excluding refinancing, the number of owner-occupier home loans across States &amp; territories were: NSW (-8.2 per cent); Victoria (+1.5 per cent); Queensland (+4.1 per cent); South Australia -1.2 per cent); Western Australia (- 1.2 per cent); Tasmania (+6.2 per cent); NT (+14.2 per cent); ACT (+7.4 per cent). 
Fixed-rate home loans accounted for 16.2 per cent of all owner-occupier loans in February (5-month low), down from 16.6 per cent in December. 
 What are the implications for interest rates and investors?
 Retailers must provide a unique proposition in the current environment in order to get cautious consumers to part April 9 2019 3 Economic Insights: First-home buyer activity at 6-year high with cash. 
Is home lending starting to stabilise after recent weakness? It is early days, but the lift in lending in February is encouraging. The softer home prices are certainly bring more first home buyers into the market. Rising home prices aren’t unambiguously positive. Neither are falling prices unambiguously negative. Rather price changes reflect a rebalancing of supply and demand. And that rebalancing continues, especially in Sydney and Melbourne. The falling home prices certainly are being embraced by first home buyers. And lower home prices, give cashedup buyers more choice if loan size doesn’t change. 
Interestingly, while NSW home prices have retreated 9.5 per cent on a year ago, the average home loan is down only 1.6 per cent. Home buyers haven’t cut back on loan size, rather they have arguably access to a greater range of properties. 
CommSec expects interest rates to be unchanged for the foreseeable future. But the loss of momentum across global economies means central banks are skewed to more accommodative monetary policies.
CRAIG JAMES is the Chief Economist at CommSec
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First-home buyer activity at 6-year high: CommSec's Craig James

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EXPERT OBSERVER
In November, almost 10,500 first-home buyers took out a home loan, just off the highest number in almost nine years. And as a proportion of all buyers, the share of first-home buyers is at 6-year highs.
The proportion of first-time buyers in the home loan market rose from 18.1 per cent in October to a 6-year high of 18.3 per cent in November (decade-average 17.7 per cent).
The number of loans (commitments) by home owners (owner-occupiers) fell by 0.9 per cent in November after rising by 2.1 per cent in October (the largest gain in 12 months).
Clearly these buyers are celebrating the greater choice of properties on the market, more attractive prices and super-low interest rates.
Over the year to November, almost $238 billion in loans were taken up by owner-occupiers to buy property, just below the all-time high of $240 billion in the year to August. While investors have retreated from the market on the belief that price gains will be harder to achieve, budding home owners are still out in force. 
The number of owner-occupier home loan borrowers in Tasmania stands at 6½-year highs in trend terms with ACT borrowers at record highs, South Australian borrowers are at 18-month highs and Western Australian borrowers at 10-month highs. Too much focus is placed on NSW and Victoria when housing markets in many other parts of the country are doing well.
It is important that investors don’t get duped by ‘lazy analyses. That is, analysis that assumes trends in aggregate national figures apply across all market sectors and regional economies. As data released yesterday shows, the number of homes being built at present is just off all-time highs. And there are still healthy numbers of budding home owners in the market, especially among first-home seekers.
What do the figures show? 
The number of loans (commitments) by home owners (owner-occupiers) fell by 0.9 per cent in November after rising by 2.1 per cent in October (the largest gain in 12 months). But loans are down by 7.9 per cent on the year. 
Excluding refinancing, new loans fell by 0.5 per cent after rising 2.3 per cent in October. 
Loans by owner-occupiers for the construction of homes fell by 2 per cent after lifting 3.3 per cent in October. 
Loans to buy newly-erected dwellings rose by 3.4 per cent – first gain in six months. 
Loans for the purchase of established dwellings (excluding refinancing) fell by 0.6 per cent after rising 2.3 per cent in October. 
The number of refinancing transactions fell by 1.1 per cent. 
Changes in home loans across the country: NSW (down 1.5 per cent); Victoria (up 0.7 per cent); Queensland (down 0.7 per cent); South Australia (down 0.8 per cent); Western Australia (up 2.4 per cent); Tasmania (down 9.2 per cent); Northern Territory (up 22.4 per cent); ACT (down 0.6 per cent).
The value of new housing commitments (owner occupier and investment) fell by 2.5 per cent. 
Owner-occupier loans fell by 1.5 per cent while Investment loans fell by 4.5 per cent. Over the year to November investor loans are down by 23.4 per cent and owner-occupier loans have fallen 7.3 per cent. 
The value of loans by owner-occupiers and investors to build new homes fell 7.2 per cent in November to $2.6 billion after rising 5.8 per cent in October. 
The value of cancelled loans totalled $1.41 billion up from $1.33 billion a year earlier. 
Commitments actually advanced (loans made) totalled $20.66 billion, down from $21.55 billion a year earlier. 
The proportion of first-time buyers in the home loan market rose from 18.1 per cent in October to 6-year highs of 18.3 per cent (decade-average 17.7 per cent). 
The proportion of fixed rate loans rose from 16.3 per cent to a 14-month high of 16.9 per cent. And the average home loan across Australia was $384,700, down 1.1 per cent on the year
What are the implications for interest rates and investors? 
Builders and real estate agents will face differing prospects depending on their location. At present five of the eight states and territories are showing monthly gains in home loans in trend terms. NSW, Victoria and Queensland are in the downturn phase of the cycle. 
Almost 17 per cent of borrowers opted for fixed-term loans in November, a 14-month high. Borrowers that took out 3-year fixed loans in 2015 and 2016 are seeing a major improvement in their budgetary situation when rolling over loans.
CommSec expects no change in official interest rates until late in 2019 at the earliest.
Craig James is the Chief Economist for CommSec
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