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


Joel Robinson

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

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


WM Residences fills gap in Mordialloc townhouse market

<p>&nbsp;</p>

<p>Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.</p>

<p>The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.</p>

<p>The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.</p>

<p>The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370975]</p>

<p>Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.</p>

<p>Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.</p>

<p>Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370981]</p>

<p>Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.</p>

<p>“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.</p>

<p>“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”</p>

<p>“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.”<br />
[smartcode_project:default project_id=144441 project_image_fid=370977]</p>

<p>The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.</p>

<p>Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.</p>

<p>The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.</p>

<p>The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370980]</p>

<p>Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.</p>

<p>“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.</p>

<p>“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”</p>

<p>A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.</p>

<p>That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.</p>

<p>The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370978]</p>

<p>According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.</p>

<p>Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.</p>

<p>The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.</p>

<p>The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.</p>

<p>That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.</p>

<p>The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370979]</p>

<p>The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.</p>

<p>“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.</p>

<p>“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”</p>

<p>The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.</p>

<p>[smartcode_project_cta:default project_id=144441]</p>


Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

<p>National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.</p>

<p>The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.</p>

<p>Multiplex has been appointed the builder, and construction is now underway.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365784]</p>

<p>Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.</p>

<p>Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.</p>

<p>“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.</p>

<p>He said NAB’s early support was instrumental in helping establish the company’s development model.</p>

<p>“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.</p>

<p>“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365771]</p>

<p>Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.</p>

<p>Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.</p>

<p>Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.</p>

<p>Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.</p>

<p>The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365768]</p>

<p>Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.</p>

<p>Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.</p>

<p>Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


NAB funds $1 billion Surfers Paradise apartment development, Palmera

<p>Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.</p>

<p>The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.</p>

<p>The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.</p>

<p data-end="792" data-start="529"><img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" /></p>

<p data-end="1040" data-start="794">According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”</p>

<p>The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.</p>

<p>The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.</p>

<p>Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.</p>

<p>“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.</p>

<p>The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.</p>

<p>The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" /></p>

<p>The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.</p>

<p>While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.</p>

<p>“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.</p>

<p>According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.</p>

<p>“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.</p>

<p>“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”</p>

<p>The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.</p>

<p>Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.</p>

<p>&nbsp;</p>

<p>The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" /></p>

<p>St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.</p>

<p>Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.</p>

<p>The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.</p>

<p>More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.</p>


First look: Aqualand joins St Leonards apartment party

Interest Rates

<html><body>
<p>One of mainstream media’s favourite “what if?” scenarios in relation to the nationwide property boom is “what is the RBA changes its mind and lifts interest rates?”.</p>

<p>The answer is: it won’t make any difference unless they deliver four or five rises in the official interest rate in rapid succession. And even then it might not halt the runaway train.</p>

<p>There are two reasons why a rate rise wouldn’t make much of a difference:</p>

<ol>
<li>The boom hasn’t been caused by low interest rates</li>
	<li>History shows that it requires five, six or seven rate rises to douse a hot market.</li>
</ol>
<p>Economists tend to display their ignorance of real estate dynamics by attributing everything that happens in residential property to the level of interest rates. So, because real estate is booming and interest rates are at record lows, the simplistic economist mind reasons that one must have caused the other.</p>

<p>But, as I outlined in detail in this column in February, there are multiple reasons for the strong up-cycle in the housing market. I have 15 dot points on my list of drivers of this national boom. Low interest rates comprise just one of them.</p>

<p>[smartcode_project:default project_id=600]</p>

<p>A change to one of the 15 factors won’t stop the strong market.</p>

<p>Government stimulus measures comprise just one of the 15 factors, so the end of JobKeeper (which is one of numerous stimulus measures) won’t halt the market momentum.</p>

<p>Nor would a rise in the official interest rate. Or two rises. In the past four decades, Australia has had two genuine, prolonged, nationwide property booms: in the late Eighties and in the early Noughties.</p>

<p>During the extraordinary boom at the end of the 1980s, mortgage rates were in double digits but (contrary to economic theory) Australia experienced rapidly rising prices pretty much anywhere. Interest rates kept rising but the boom raged on. Mortgage rates hit 17-18% before the boom stopped.</p>

<p>[smartcode_project:default project_id=4807]</p>

<p>The boom that prevailed from 2001 to 2004 happened with mortgage rates much higher than now – 7-8%. There were a couple of interest rate rises amid that boom but the momentum was not halted. There were a couple more rate rises in 2004 but by then the boom was already subsiding after three years of big growth. Rate rises were not the cause of the boom ending.</p>

<p>In 2007 and 2008, before the GFC, there were signs of an up-cycle in the housing market. Then we had eight interest rate rises and the onset of the GFC – and the price rises ended.</p>

<p>The GFC inspired massive Federal Government stimulus measures, including major assistance for first-home buyers, plus six rapid-fire interest rate increases. As a result of the combination of those factors, prices rose in strongly in 2009 and 2010. Then we saw seven interest rate increases in a short period.</p>

<p>[smartcode_project:default project_id=29660]</p>

<p>Since 2011 we have had 18 reductions in the official interest rate but, until recently, no sign of a nationwide real estate boom. In that period, we saw big price growth in Sydney and Melbourne 2013 to 2017, but that did not happen elsewhere. Amid that period of very low and falling interest rates, many of our major markets, including Perth and Darwin, had steadily falling house prices.</p>

<p>The message from analysing property prices and interest rate changes is that it’s only in periods of multiple changes to rates to rapid succession that we see markets apparently reacting – but the influence of interest rates is unclear because there are other major factors in play at the same time.</p>
</body></html>

It won’t make any difference unless they deliver four or five rises in the official interest rate in rapid succession, and even then it might not halt the runaway property train.

terryryder

Can interest rate hikes stop the property boom? Not a chance: Hotspotting's Terry Ryder

<html><body>
<p>Amid ongoing uncertainty in the global markets due to COVID-19 it remains low rates as usual for the RBA, who kept the official cash rate at 0.10 percent for another month.</p>

<p>Their recently released chart pack, which details figures from the world economy to Australia's financial figures, yielded interesting information about the Australian property situation</p>

<p>Private residential building approvals has continued to soar, up once again in February as seen below.</p>

<p><img alt="" height="339" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/rba_chart_1.jpg" width="407"></p>

<p>This trend continues to be driven by growth in the detached housing sector which can be attributed to the HomeBuilder grant among other government initiatives</p>

<p><img alt="" height="357" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/rba_chart_2.jpg" width="396"></p>

<p>There continues to be a gap between household consumption and disposable income.</p>

<p>A household's disposable income hadn't been higher than its consumption since 2014.</p>

<p>This is in sharp contrast to the current Covid-19 effected situation.</p>

<p>Housing price growth can be seen to have come out of a dip with APM recording the smallest falls as seen below. </p>

<p><img alt="" height="313" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/rba_chart_3.jpg" width="401"></p>

<p>Residex and CoreLogic data showed that for the year to February home price growth near zeroed out.</p>

<p>Housing loan commitments continue to soar to new record highs, levels well beyond the 2015 and 2017 highs.</p>

<p><img alt="" height="353" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/rba_chart_4.jpg" width="393"></p>

<p>This trend is similarly driven by government initiatives with owner-occupiers rocking this trend up to $20 billion in commitments.</p>

<p>Investor's have also been investing further although clearly not to a similar level as many lack incentive in this current low supply, high demand market.</p>
</body></html>

Data showed that for the year to February home price growth near zeroed out, however a growth spike seems to be on the horizon

jordan_55689

House prices hold steady and ready for turnaround: RBA 

<html><body>
<p>Experts and economists are united in their view that the RBA will hold the cash rate this month, with only one prediction for any movements at all in 2021, according to the latest survey from Finder.com.au.</p>

<p>Tony Makin of Griffith University, believes the rate will increase this year due to the economic effects of the COVID-19 vaccination rollout.</p>

<p>“Global economic activity will pick up as countries are vaccinated. Given the expansion in money supplies, other things equal this will put upward pressure on inflation. Otherwise, macroeconomics textbooks need to be rewritten. </p>

<p>“At the same time, record-breaking levels of public debt worldwide will continue to exert upward pressure on bond yields," Makin said.</p>

<p>Shane Oliver from AMP Capital said that while the economy has recovered faster than expected, the RBA is still a long way away from meeting its inflation and employment goals. </p>

<p>“A rate hike is still a long way away. </p>

<p>“That said, the faster than expected recovery will likely see the first hike occur earlier than the RBA's expectation of ‘no increase before 2024’. It could come late next year or early 2023," Oliver said.</p>

<p>Positive sentiment around both housing affordability (3%) and cost of living (3%) reached the lowest level ever recorded since the Finder survey began in 2018.</p>

<p>Employment continued to be the highest indicator measured with 55% expressing positive sentiment, down from its record-high of 73% last month.</p>

<p>Positive sentiment around employment plummeted to 0% in April when the lockdowns first began, but the nation’s stronger-than-expected economic recovery has resulted in a rosier outlook for the job market. </p>
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Experts and economists are united in their view that the RBA will hold the cash rate this month, with only one prediction for any movements at all in 2021

Experts and economists forecast a cash rate lockdown until 2022

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<p>NAB has today announced cuts to fixed home loan rates with decreases of up to -0.55% for owner occupied and up to -0.15% for investment loans.</p>

<p>Today’s cuts position NAB’s owner occupier 3-year fixed principal and interest package rate of 1.98% (3.83% comparison rate) ahead of the other major banks’ rates for the same term.</p>

<p>Canstar analysis reveals that moving from the average variable rate of 3.28% to a 3-year fixed rate of 1.98% could see an owner occupier paying principal and interest on a $400,000 home loan slash their repayments by $273 each month or $9,828 over three years. However, moving to the lowest 3-year fixed rate in the market of 1.75% (comparison rate 2.22%) from NAB’s subsidiary bank, Ubank would cut repayments by $318 per month. </p>

<p><img alt="" height="502" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_rates_2021_1.jpg" width="680"></p>

<p>Canstar Group Executive, Financial Services, Steve Mickenbecker says the move shows NAB is competing for new business by taking advantage of low cost funding.</p>

<p>“Interest rates continue on their downward path for homeowners and investors. NAB’s 11 basis point cut to its three year fixed rate for homeowners means that it has undercut the rates of competitors to deliver the lowest interest rate of the major banks for this popular fixed term.”</p>

<p>“Low cost funding has made fixed rates the playground for the big banks and while the Reserve Bank term funding facility remains available, the great deals should stay strong. Mid-year could see a small upward adjustment when the term funding is expected to be fully allocated and expire."</p>

<p>“It’s a great time to be thinking about fixing a rate when you can lock in for three or four years with an interest rate below 2%. Today’s move from NAB suggests competition at the low interest rate end of the market will be with us for a little longer,” Mr Mickenbecker concluded.</p>

<p><img alt="" height="502" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_rates_2021_2.jpg" width="683"></p>

<h2>Properties you may like:</h2>

<p>[smartcode_project:default project_id=22700]</p>

<p>[smartcode_project:default project_id=2807]</p>
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Today’s cuts position NAB’s owner occupier 3-year fixed principal and interest package rate of 1.98% ahead of the other major banks’ rates for the same term

NAB cuts fixed rates by up to -0.55%

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<p>Australian homeowners rank paying off their mortgage as their greatest life priority yet over 50% don't know the exact current interest rate on their home loan, according to new research commissioned by Mortgage Choice.</p>

<p>The research survey found a disconnect between the increased financial concerns borrowers are experiencing from COVID-19 and knowledge of whether their interest rate is competitive.</p>

<p>Only 46.5% of respondents knew their current interest rate, Much fewer in 2020 compared to previous surveys commissioned by Mortgage Choice (61.5% in 2018 and 71% in 2016).</p>

<p>This increased complacency comes at a time when the coronavirus pandemic has put more people under financial pressure. Over 62% of Australians admit that COVID-19 has caused them to worry more about money, with 65.6% trying to boost their resilience by saving more, spending less and improving their financial knowledge.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/mortgage_choice_2020.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/mortgage_choice_2020.jpg?itok=Bk5UqzeU" width="580"></a></figure><p>"Our research suggests that Australians are more focused than ever on their finances, yet many are being complacent with their biggest expense and potentially biggest saving, Susan Mitchell, Chief Executive Officer at Mortgage Choice, said.</p>

<p>Homeowners aged 30 to 39 were the most likely to not know their interest rate (64.5%), with those aged 50 to 59 years close behind at 56.4%.</p>

<p>Ms Mitchell said, "it's so important to know your interest rate because if you’ve been complacent the chances that you are paying too much are extremely high. Every Australian should make it a New Year resolution to review their home loan. Give yourself an early Christmas present by reducing your rate and saving on repayments.”</p>

<p>However, Australians are not keeping track of interest rates or checking to see if they are getting the best deal. Asked how often they review their home loan, 13.7% said never, and 44.4% said every couple of years. Even fewer (41.9%) review their loan annually.</p>

<p>“I strongly encourage all borrowers who haven’t had their loan reviewed in the last 24 months to speak to their broker or their lender to learn if they’re still in a competitive home loan," added Ms Mitchell.</p>

<p>"In the past year alone, the cash rate has dropped by 65 basis points, and many lenders are open to negotiating on rate reductions. Let's say your principal and interest rate is 3.99% and shopping around with the help of a mortgage broker enables you to drop by 50 basis points to 3.49%. On a 30-year home loan of $600,000, the savings could be in the vicinity of $170 a month," she concluded.</p>
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Only 46.5% of those surveyed by Mortgage Choice knew their current interest rate, much lower than 61.5% in 2018 and 71% in 2016

urban.com.au

Majority of Australians don't know their home loan's interest rate

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<p>Glenn Stevens' statement on interest rates was bland but holds important reminders for property investors.</p>
<p>It's probably a sign of how stable our economy is that we wait for the slightest change in wording when the Reserve Bank (RBA) decides on the cash rate.</p>
<p>Last Tuesday the RBA board met and decided to keep the official interest rate at 2.5% – not only a historically low rate compared with the 5.2% average since 1990, but also a rate that's been kept the same since August 2013.</p>
<p>But it was the way RBA governor Glenn Stevens expressed himself on property prices and the Australian dollar that is worth looking at during the remainder of the year and into 2015.</p>
<p>For more than a month we've heard strong commentary from economists about unhealthy price inflation in the property market, driven by low interest rates. Some of that comment has predicted an end to negative gearing. I haven't joined this discussion because lenders' figures don't suggest a problem in the property market, and the Bureau of Statistics' House Price Index series shows we are just slightly above the index average since 2002.</p>
<p>However, the RBA governor in his statement did mention investment property: "Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets."</p>
<p>I think Stevens was right to address the property market with a bland statement like this. If nothing else, it's a reminder to property investors that they must do their homework and invest wisely regardless of what official interest rates are doing.</p>
<p>With an investment property, you are interested in a good location and access to infrastructure such as schools, shops, railway stations and playing parks. And you are also interested in average rentals and some historical data on rental yields.</p>
<p>But the first step in a good investment is buying well. This means not just paying a good price for the year, but a good price for the 10 to 20 years you want to generate income from this property. If you pay too much you'll lose on capital appreciation and it will take longer to generate clear funds from the rent.</p>
<p>It's one thing to get carried away at an auction and pay too much for the house you love, but an investment property is a business that must earn income and capital growth for many years.</p>
<p>So keep a cool head.</p>
<p>The other element mentioned by the RBA – that they expect the Aussie dollar to fall further against the US – is something that might give a boost to our economy. When our dollar was at parity with the US, Aussie exports were expensive and local manufacturers found it hard to compete in foreign markets.</p>
<p>Now that our dollar is at 85 US cents – and expected to fall further – our non-mining economy has a chance to pick up, expand operations and create jobs.</p>
<p>So don't be alarmed at the lack of big headlines from the Reserve Bank this month. A steady economy is a great thing when you consider the alternative.</p>
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mbouris-tauSvXGAM2

Do your homework, whatever the interest rate

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<div>Markets played around with the idea of the easing cycle being over for a while.</div>
<div> </div>
<div>Not any more, though, as the yield curve inverts once again.</div>
<div> </div>
<div>Still only a low probability of a cut in September. </div>
<div> </div>
<div>However, another rate cut is fully priced in for December, with the implied yield on August 2016 contracts sagging as low as 1.61%.</div>
<div> </div>
<div><a href="/images/2015/08/26/ASX.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/ASX.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<p><span> </span></p>
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pwargent-M4siyDbqQY

Interest rates to fall: Pete Wargent

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<div id="post-body-8300417078442297736" class="post-body entry-content">
<div>One of the most important releases of the global calendar, the US nonfarm payrolls, confirmed things are turning back down in the face of slower growth and trade war concerns. </div>
<div> </div>
<div>Earlier in the week there had been a similarly weak indicator from a private payrolls report.</div>
<div> </div>
<div>Nonfarm payroll employment increased by just +75,000 in May 2019 according to the Bureau of Labor Statistics, and critically there were also substantial downwards revisions to March (-36,000) and April (-39,000). </div>
<div> </div>
<div>Combine a weak monthly gain of +75,000 with a combined revision of -75,000 and you get...not very much, although at least this did mark a record 104 consecutive months of gains. </div>
<div> </div>
<div>The 3-month average gain is now just above +150,000, having been above +200,000 for much of 2018 and 2019. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-oCxVjG5jgE4/XPrPZcmCKyI/AAAAAAAAwZo/XIaPMHwveNQBQXCQcFF_y92gxVmx3g-7QCLcBGAs/s640/NFP1.jpg" width="640" height="368" data-original-height="800" data-original-width="1389"></div>
<br>The unemployment rate held steady at 3.6 per cent.<br><br><div class="separator"><img src="https://1.bp.blogspot.com/-VV6mk5t6S2Q/XPrPZQdLQBI/AAAAAAAAwZs/3T9WL5W_p5MDtBBnLiuydEN132e6RBW4QCLcBGAs/s640/NFP2.jpg" width="640" height="382" data-original-height="833" data-original-width="1390"></div>
<br>But annual average hourly earnings growth slowed to +3.1 per cent.<br><br><div class="separator"><img src="https://1.bp.blogspot.com/-6K-7SN1xz_A/XPrPZfVYmjI/AAAAAAAAwZw/6CDgCikRDroi5irW2jUAMrfmfWIjNo5_ACLcBGAs/s640/NFP3.jpg" width="640" height="364" data-original-height="790" data-original-width="1385"></div>
<div><span style="text-decoration: underline;"> </span></div>
<div> </div>
<div>A couple of Antipodean observations.</div>
<div>
<br>Firstly, hard though it is to imagine, markets are pricing a 4 in 5 chance of the Fed cutting interest rates as soon as July(!). </div>
<div> </div>
<div>And secondly, looking at unemployment rates from Japan to Germany, Netherlands, the US, UK, Taiwan, and South Korea - all 4 per cent or considerably lower in many cases - it's not hard to imagine that Australia's NAIRU could be much lower than previously assumed. </div>
<div> </div>
<div>For that reason and others, markets are now pricing in two further rate cuts in Australia over the next 12 months.</div>
<div> </div>
<div>I was travelling yesterday and didn't get around to posting the pre-election housing finance figures, which showed a small uptick for homebuyers and a decline for investors.</div>
<div> </div>
<div>Speaking with a few mortgage brokers yesterday, there has been a surge of enquiries since the election, and especially now interest rate cuts are being passed on.</div>
<div> </div>
<div>Importantly, while banks were previously taking up to a couple of months to return documentation, not the figure is back down to about a week, so things are 'back to normal' in that regard. </div>
<div> </div>
<div><em><span>PETE WARGENT</span> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. </em></div>
</div>
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Rate hiking cycle crashes and burns: Pete Wargent

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<p>GUEST OBSERVATION</p>
<p>The Reserve Bank of Australia’s (RBA) announcement to hold the cash rate for April at 2.25 percentage points could ease the increase in house and unit values over the next month. A market slowdown would allow greater purchasing power for first time home buyers in unaffordable housing markets.</p>
<p>The number of first time homebuyers taking out home loans has declined as a result of the recent housing boom, which saw more investors enter the market. This is supported by ABS data, which shows that home loans taken out by first time homebuyers have steadily decreased from 18.8% in 2012 to 14.9% in 2015.</p>
<p>Furthermore, according to ABS data, the size of the average home loan increased 1.07% between December 2014 and January 2015, to $346,600.</p>
<p>The decision to hold rates is partly attributable to Australia’s two-tiered housing market. According to <a href="https://Onthehouse.com.au" target="_blank">Onthehouse.com.au</a> data, at February 2015, Sydney experienced quarterly growth of 3.55% for houses, and 2.83% in units. These are down from the January quarter of 4.10% for houses and 3.04% in units, although they still reflect strong investor demand.</p>
<p>Despite Sydney’s strong performance, other markets, including Melbourne and Brisbane, saw contraction in property values at the end of the February quarter.</p>
<p>On the supply side of the housing market, February housing approvals were almost at a five-year high. In NSW, approvals for February 2014 totalled 4,692 dwellings, approximately 2,600 of which were units. Dwelling commencements in NSW, as last recorded in September 2014, were at a high of 14,063, which is a 43% increase in commencements from the previous quarter, and is 49% higher than the five-year average of commencements.</p>
<p>Dwelling commencements also increased in QLD and VIC, but at a lower rate. Nationwide, commencements hit a record high of 54,436, despite migration currently sitting below the five-year average. A further cut in the cash rate could have seen funds misallocated in a market where migrant and first homebuyer demand is in decline.</p>
<p>Overall, despite the benefits to first time homebuyers, the rate hold decision does come within a tricky economic climate for the RBA, where economic indicators have remained virtually unchanged for the previous period.</p>
<p>Some notable indicators include:</p>
<ul>
<li>The unemployment rate decreased from 6.4% in January to 6.3% in February. However, this was coupled with a decrease in the participation rate from 64.7% to 64.6%, suggesting that the unemployment rate fell as people came out of the labour force, rather than finding work.</li>
<li>Annual wage price growth was at a five year low in the quarter ending December 2014, at just 2.5%. The December quarter also saw low inflation, which was last recorded at 1.7%.</li>
<li>Iron ore is currently at a 10 year low, at $US46.7 a tonne. Iron ore is expected to fall further as competitors amplify supply to win greater market share.</li>
<li>Oil prices seem to be stabilising following a significant decline since July 2014. Oil rose marginally in the latest trading session to $US53 per barrel. While the price is stabilising at approximately half the five-year average, Australians may no longer enjoy further discounts in the oil price. </li>
</ul>
<p>Though the above factors call for a further cut in the cash rate, the hold is more about timing than tightening monetary policy. This month will reveal new quarterly inflation figures and employment data, which would allow more insight into the impact of February rate cuts. </p>
<p><em><strong>Eliza Owen</strong> is a market analyst at <a href="https://Onthehouse.com.au" target="_blank">Onthehouse.com.au</a>.</em></p>
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po-LsXgBTHBmX

The RBA April rate hold will benefit first time home buyers: Eliza Owen

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<div>The latest APRA figures showed that loans with redraw and offset facilities have continued to flourish and become more popular than ever before. </div>
<div> </div>
<div>But check these two charts out below. </div>
<div> </div>
<div>Firstly, a massive $44 billion of loans of $96 billion new residential housing loans written in the June quarter were accounted for by interest only products.</div>
<div> </div>
<div><a href="/images/2015/08/26/IO2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/IO2.jpg" alt=""></div>
<div> </div>
<div><span>And secondly, to put this in its recent historical context, $44 billion reprsents an incredible 45.8 per cent of new loan exposures written.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/26/IO1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div> </div>
<div><span><img src="/images/2015/08/26/IO1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator">In summary, it is true that offsets and redraw facilities are included in new loan products more than has ever been the case before.</div>
<div class="separator"> </div>
<div class="separator">However, with somewhere now approaching half of new loans written not requiring immediate repayments against the loan principal there appears to be an increasingly heavy reliance on borrowers managing their personal finances responsibly.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</body></html>

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