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.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Home Prices

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GUEST OBSERVER
The weekly ANZ/Roy Morgan consumer confidence rating fell by just 0.4 points (0.3 percent) to 116.0 in the week to March 20.
 Confidence is up 4.1 percent over the year and above the average index value of 112 since 2014.
Higher home prices: The Bureau of Statistics reports that Australian home prices rose by 0.2 percent in the December quarter to stand 8.7 percent higher over the year.
Fewer people in homes: The estimated number of people per home continues to fall, dropping from 2.491 to 2.488 in the December quarter.
The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.56.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.56.43%20PM.png" alt="">
What does it all mean?
Headed into a period dominated by the Federal Budget and a possible double-dissolution election, Aussie consumers are in good shape. All the key components of the confidence survey are above short-term averages.
And indeed the outlook for family finances over the coming year – a lead indicator of spending – remains positive.
The key question is how confidence evolves over the next few weeks. The Aussie dollar is near US76 cents, interest rates are at generational lows, trend unemployment is at 26-months lows and petrol prices are just above the lowest levels recorded in six years. So there are few reasons to be negative.
The Bureau of Statistics has released data on home prices for the December quarter. However the better measures on home prices are those produced by CoreLogic RP Data and it’s worth noting that March quarter data will be released in just over a week, on April 1.
From 2011 to early 2014, the average number of people in Aussie homes rose – a rare development over the past century in Australia. But with more homes being built in recent years and rental conditions easing, more Gen Y (or Millennials) have been moving out of home. As a result the number of people per home is again shrinking, serving to soak up the increased supply of new homes.
What do the figures show?
Consumer confidence
The weekly ANZ/Roy Morgan consumer confidence rating fell by 0.4 points (0.3 percent) to 116.0 in the week to March 20. Confidence is up 4.1 percent over the year and above the average of 112 since 2014. Three of the five components of the index rose in the latest week:
The estimate of family finances compared with a year ago was up from +10 to +11;
The estimate of family finances over the next year was down from +35 to +27;
Economic conditions over the next 12 months was up from -2 to +2;
Economic conditions over the next 5 years was up  from +7 to +9;
The measure of whether it was a good time to buy a major household item was down  from +32 points to +31 points.
Residential property prices
The Bureau of Statistics (ABS) has released its Residential Property Price indexes.
“The price index for residential properties for the weighted average of the eight capital cities rose 0.2 percent in the December quarter 2015. The index rose 8.7 per cent through the year to the December quarter 2015.
The capital city residential property price indexes rose in Melbourne (+1.6 percent), Brisbane (+1.6 percent), Adelaide (+0.9 percent), Canberra (+2.8 percent), Perth (+0.5 percent) and Hobart (+2.5 percent) and fell in Sydney (-1.6 percent) and Darwin (-1.8 percent).
Annually, residential property prices rose in Sydney (+13.9 percent), Melbourne (+9.6 percent), Canberra (+6.0 percent), Brisbane (+4.2 percent), Hobart (+3.5 percent) and Adelaide (+3.3 percent) and fell in Darwin (-3.2 percent) and Perth (-2.9 percent).
The ABS notes that as at December 2015 there were 9.62 million homes in Australia. On average there were 2.488 people per home, down from 2.491 in the September quarter.
“The total value of residential dwellings in Australia was $5,885,967.2m at the end of December quarter 2015, rising $31,557.1m over the quarter.
The mean price of residential dwellings rose $800 to $612,100 and the number of residential dwellings rose by 38,700 to 9,615,800 in the December quarter 2015.”
What is the importance of the economic data?
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
The Australian Bureau of Statistics (ABS)  provides quarterly data on residential prices. The figures provide further perspectives on the state of the housing purchase sector.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.58.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.58.09%20PM.png" alt="">
What are the implications for interest rates and investors?
CommSec doesn’t expect any change in the cash rate for the foreseeable future. Underlying inflation remains at the bottom of the 2-3 percent target band but should lift over 2016.
The Reserve Bank believes that the aspects of the consumer confidence surveys dealing with family finances are the most important. The good news for retailers is that Aussie consumers believe finances are better than a year ago and likely to remain in good shape.
The fall in the number of people per home most probably reflects lower growth in rents and the lift in homebuilding, especially the shift to apartment living. But the drop in the number of people per home is one factor serving to alleviate concerns of a potential oversupply developing of new homes.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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jchancellor-FAypfDUnLy

Contented consumers; Fewer people in homes: CommSec's Craig James

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GUEST OBSERVER
Sydney property prices fell by 1.4%, marking the biggest fall in nearly five years.
Melbourne property prices fell by 3.5% in November – the largest fall in 18 months.
The CoreLogic RP Data home value index of capital city home prices fell by 1.5% in November to stand 8.7 % higher over the year. 
Dwelling prices rose in just three of the eight capital cities in November.
The performance of manufacturing index lifted by 2.3 points to 52.5 in November, the highest reading in two years. A reading above 50.0 indicates that the sector is expanding.
Production, orders, employment, exports and sales all recorded healthy gains in November.
What does it all mean?
So far so good. The second day this week of better economic data. A mild correction in property prices (particularly in Sydney and Melbourne) is a good thing, while a healthy expansion is taking place in manufacturing activity (two-year high).
The slide in capital city home prices in November marked the first fall in six months and the biggest slide nationally in 18 months. No doubt the weakness in home prices is being driven by the tightening in lending criteria by the banking sector.
In particular the concerted effort to cool investor demand or speculative home purchases is paying dividends.
Sydney house prices recorded a 1.4 % slide in November - its biggest fall in almost five years. But keep in mind Sydney home prices are still up almost 13 % over the year. 
While it was encouraging that Sydney and Melbourne prices pulled back, the perfect scenario would have been for a credible lift in prices across other capital cities.
Dwelling prices fell in five of the eight capital cities, and while “Rest of State” prices managed to lift by 0.3 % in November, annual growth holds at a paltry 2.8 %. 
This highlights the issues facing policymakers in attempting to manage a very diverse housing market. What we would expect to see is the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months.
The consolidation in home prices is unlikely to see home building dry up.
There is a record pipeline of dwelling approvals that suggest a lot of building work will take place over the next 12-24 months - supportive of a lift in activity levels over the medium term.
The rebalancing effect across the economy continues to take place.
Manufacturing activity is now expanding at the fastest pace in two years and more importantly the sub-indices like, employment, production, sales and exports are all showing a credible lift.
The results mirror the lift in manufacturing investment in last week’s business investment data. No doubt the weaker Australian dollar will continue to support the sector.
What do the figures show?
Home prices
- The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices fell by 1.5 % in November to stand 8.7 % higher than a year ago.
- House prices fell by 1.6 % in November while apartments fell by 0.9 %. House prices were up 9.1 % on a year ago and apartments were up by 6.6 %.
- The average Australian capital city house price (median price based on settled sales over quarter) was $626,000 and the average unit price was $525,000. The average Sydney house price was $950,000 – still some way off the $1 million mark.
- Dwelling prices rose in just three of the eight capital cities in November: Adelaide (up 0.7 %), Brisbane (up 0.6 %) and Perth (up 0.3 %).
- Prices fell most in Melbourne (down 3.5 %), Hobart (down 2.4 %), Sydney (down 1.4 %), Darwin (down 1.3 %) and Canberra (down 0.5 %).
- Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 12.8 %), followed by Melbourne (up 11.8 %), Canberra (up 4.5 %), Brisbane (up 4 %), Adelaide (up 3.3 %), and Hobart (up 1.1 %).
- Prices fell in Darwin (down 4.2 %) and Perth (down 4.1 %).
- Total returns on capital city dwellings in the year to November rose by 12.8 % with houses up 13.0 % on a year earlier and units up 11.4 %.
CoreLogic RP Data noted that as a consequence of the tighter lending environment for rental yields, combined capital cities investors, as well as gross rental yields being at near record lows, participation in the housing market from investors has reduced from 54.1 % of all new mortgages in May 2015 to 45.4 % at the end of September, which is the lowest level since July 2013.
Data released by APRA at the end of last month showed the pace of investment related housing credit growth fell below the APRA 10 % speed limit for the first time since September last year, with the monthly change in investment credit growth the lowest since October 2011.
According to today’s results, the slowdown comes after auction clearance rates have moderated back to the low 60 % range since the last week of October, whilst average selling time and vendor discounting rates also continue to rise from their record lows.”
Performance of Manufacturing
- The Performance of Manufacturing index lifted by 2.3 points to 52.5 in November. A reading above 50.0 indicates that the sector is expanding.
- Production, orders, employment exports and sales all recorded healthy gains in November.
<a href="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" alt="">
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>. 
 
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Sydney home prices record biggest slide in five years: CommSec Research

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GUEST OBSERVER
Across the nation home prices are starting to look healthier with the gains more wide spread across the states, rather than being just Sydney or Melbourne based. In fact Sydney prices only lifted by 0.1% while capital city home prices rose by a much more robust 0.9%. Even more encouraging five of the eight capital cities recorded growth.
In fact if you take out the capital cities and look at the “Rest of State” index, home prices lifted by 0.6%. Granted it is still early days for the regional cities with home prices up just 2.8% over the past year, but the signs are more encouraging. We would expect to see the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months. Strength in home prices across the nation will be more supportive of a lift in activity levels over the medium term.
Sydney house prices are up almost 17 per cent on a year ago with total returns lifting by a staggering 21 per cent over the past year. Although in the Sydney housing market there are signs that price growth will be more circumspect going forward. The tighter lending policies being adopted by the banks, coupled with new housing supply should ensure much more sedate property price growth. 
The manufacturing sector expanded for the third consecutive month. Clearly a function of the lower Australian dollar.
The job market continues to improve with job vacancies at the highest levels in almost three-year highs. With population growth slower than in past years, unemployment has more chance of falling over the coming year.
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What do the figures show?
Home prices
The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices rose by 0.9 per cent in September to stand 11 per cent higher than a year ago.
House prices rose by 0.9 per cent in September while apartments rose by 0.6 per cent. House prices were up 11.6 per cent on a year ago and apartments were up by 7.3 per cent.
The average Australian capital city house price (median price based on settled sales over quarter) was $613,000 and the average unit price was $515,000. The average Sydney house price was $920,000 – still well short of a $1 million. 
Dwelling prices rose in five of the eight capital cities in September: Melbourne (up 2.4 per cent), Brisbane (up 1.4 per cent), Canberra (up 1.0 per cent), Perth (up 0.5 per cent) and Sydney (up 0.1 per cent). Prices fell in, Hobart (down 1.9 per cent), Adelaide (down 1.2 per cent), and Darwin (down 0.3 per cent).
Home prices were higher than a year ago in four of the eight capital cities. Prices rose most in Sydney (up 16.7 per cent), followed by Melbourne (up 14.2 per cent), Brisbane (up 4.6 per cent), and Canberra (up 0.6 per cent). Price fell in Darwin (down 3.9 per cent), Perth (down 0.9 per cent) Adelaide (down 0.3 per cent), and Hobart (down 0.2 per cent).
Total returns on capital city dwellings in the year to August rose by 14.4 per cent with houses up 14.7 per cent on a year earlier and units up 12.3 per cent.
Job vacancies:
Job vacancies rose by 2.7 per cent to 160,900 in seasonally adjusted terms in the three months to August. It was the highest number of vacancies in almost 3 years (since November 2012).
Over the year vacancies lifted 18.6 per cent in Victoria in original terms over the year but fell 34.2 per cent in Northern Territory and fell by 11.3 per cent Western Australia. Over the past year, job vacancies rose by 15,100 or 10.2 per cent in original terms.
Over the past year, vacancies rose the most in Administrative and Support Services and Accommodation, Cafes and Restaurants (both up 5,100). Vacancies fell most in Manufacturing (down 3,300), Mining and Transport and storage (both down 1,000) and Communication services (down 1,000).
Performance of Manufacturing
The Performance of Manufacturing index rose by 0.4 points to 52.1 in September. A reading above 50.0 indicates that the sector is expanding. Production, orders, exports, sales, and capacity use rose in September but employment, selling prices eased, while wages fell. 
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<div class="column">What is the importance of the economic data?</div>
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The CoreLogic RP Data Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic- RP Data Hedonic Index includes all properties. Home prices are an important driver of wealth and spending. The Australian Bureau of Statistics releases Job Vacancies data each quarter. The data is useful in gauging the strength of the job marketThe Australian Industry Group and PricewaterhouseCoopers compile the Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
What are the implications for interest rates and investors?
The Reserve Bank won’t be lifting or cutting interest rates any time soon. A couple more months of sedate growth in Sydney home prices will be welcomed by policymakers – there is just no fundamental reason to change interest rate settings at present.
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 The ongoing lift in job vacancies is certainly encouraging – supporting household confidence and spending.
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<div class="column">CommSec expects interest rate settings to remain unchanged over 2015 and 2016. </div>
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<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au" target="_blank">CommSec</a></div>
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Healthy home prices: CommSec's Savanth Sebastian

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GUEST OBSERVER
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<div class="column">In terms of home prices, it is Sydney first, daylight second. In August, Sydney prices rose by 1.1% while next-placed Adelaide saw prices rise by 0.7%. And in the majority of capital cities prices were flat or falling in the month. Over the year Sydney prices were up 17.6%. Next-placed Melbourne had prices up 10.6% on the year. But in three capital cities, home prices are below year ago levels. And home prices in regional Australia were up just 2.3% over the year.</div>
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 Sydney home prices will slow over the year as more homes are built. Already gross yields on homes are recording the slowest growth rates on record in Sydney and Melbourne. And rents are growing at the slowest annual rates on record.
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 If you are a tenant, it is good times. If you are a property seller in Sydney, times are still good. If you are a home buyer in Sydney, there are challenges, with prices still lifting strongly. If you are a home buyer outside Sydney or Melbourne, conditions are favourable. Clearly there is no such thing as a single housing “market”.
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 More good news on the economy – consumers are still happy and the manufacturing sector is expanding. Yet more reason for the Reserve Bank to be pleased at the evolving situation.
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<div class="column">What do the figures show?</div>
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<div class="column">Home prices</div>
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The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices rose by 0.3% in August to stand 10.2 per cent higher than a year ago.
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House prices rose by 0.3% in August while apartments rose by 0.8%. House prices were up 10.6% on a year ago and apartments were up by 7.4%.
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The average Australian capital city house price (median price based on settled sales over quarter) was $600,000 and the average unit price was $509,900. The average Sydney house price was $900,000 – still well short of a $1 million. 
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Dwelling prices rose in just three of the eight capital cities in August: Sydney (up 1.1 per cent), Adelaide (up 0.7 per cent) and Darwin (up 0.3 per cent). Prices were flat in Melbourne and Brisbane. Prices fell in Canberra (down 1.7 per cent), Perth (down 1.3 per cent) and Hobart (down 1.1 per cent).
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 Home prices were higher than a year ago in five of the eight capital cities. Prices rose most in Sydney (up 17.6 per cent), followed by Melbourne (up 10.6 per cent), Brisbane (up 3.9 per cent), Adelaide (up 1.8 per cent), and Hobart (up 1.5 per cent). Price fell in Darwin (down 4.6 per cent), Perth (down 1.8 per cent) and Canberra (down 0.9 per cent).
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 Total returns on capital city dwellings in the year to August rose by 14.4 per cent with houses up 14.7 per cent on a year earlier and units up 12.3 per cent.
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RP Data report: “While the August results indicate a slowdown in the rate of appreciation in dwelling values, the quarterly figures highlight just how strong the housing market has been over the past three months; combined capital city dwelling values are 5.3 per cent higher over the three months to the end of August this year.”
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 “Growth in weekly rental rates shifted to a new record low for annual growth over the month of August. Across the combined capital cities, the median weekly rental rate rose by just 0.7 per cent over the past twelve months, with house rents up 0.5 per cent and unit rents up a higher 1.6 per cent.
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 Since May 2013, dwelling values have risen at a faster pace than weekly rents. “The result of the disparity between dwelling values and dwelling rents has been a consistent downwards trend in gross rental yields. Gross yields are at record lows in both Sydney and Melbourne. A typical dwelling is attracting a gross yield of just 3.3 per cent and 3.1 per cent respectively across Australia’s two largest cities.”
Performance of Manufacturing
The Performance of Manufacturing index rose by 1.3 points to 51.7 in August. A reading above 50.0 indicates that the sector is expanding. The survey is volatile from month to month and is not providing accurate guidance on economic conditions. Orders, employment, capacity use and input prices rose in August but production, exports, sales, selling prices and wages fell.
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Consumer sentiment The weekly ANZ/Roy Morgan consumer confidence rating rose by 0.3 per cent 113.3 in the week to August 30. Confidence is up 0.6 per cent over the year and still up on the average of 111.5 since 2014.
Three of the five components of the index rose in the latest week:
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The estimate of family finances compared with a year ago was down from +11 to +10; The estimate of family finances over the next year was up from +22 to +27;
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Economic conditions over the next 12 months was down from -6 to -11;
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Economic conditions over the next 5 years was up from +7 to +9;
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The measure of whether it was a good time to buy a major household item was up from +31 to +32 points. What is the importance of the economic data?
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The CoreLogic RP Data Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic- RP Data Hedonic Index includes all properties. Home prices are an important driver of wealth and spending. 
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The Australian Industry Group and PricewaterhouseCoopers compile the Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
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The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank. 
What are the implications for interest rates and investors? 
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The Reserve Bank won’t be lifting or cutting interest rates any time soon. The strong gains in Sydney home prices aren’t influencing policy decisions – there is just no fundamental reason to change interest rate settings at present. 
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CommSec expects interest rate settings to remain unchanged over 2015. 
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The resilience of consumer sentiment is positive for retailers. 
 
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<div class="column">Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</div>
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