<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Interest Rates

<html><body>
The Commonwealth Bank is the latest lender to lift interest rates for homebuyers looking to fix their home loan.
The country’s biggest lender lifted the rate of its popular 3-year fixed rate by 0.20 percentage points to 4.24 percent on Friday.
It also lifted its longer-term 5-year fixed rate by 0.60 percentage points to 4.74 percent.
CBA was the second major bank in a fortnight to lift fixed rates following Westpac.
A RateCity.com.au analysis shows that a further 20 lenders have lifted rates 268 fixed products since November 1.  
Peter Arnold, data insights director at RateCity.com.au said fixed rates are based on market expectations of future rates and "are the best indicator that we’ve got that a variable rate hike on the way.".
“Previously, banks were betting on lower rates in the future but we’re seeing those expectations change by the day.
"Shorter-term fixed rates are still sitting below variable rates, which tells us rates will stay steady when the RBA meets on Tuesday.  
“But longer-term fixed rates, such as 5 years fixed, are sitting higher than variable rates and rising by the biggest margins, which tells us that they don’t expect low rates will last forever.”
But he added it’s always a gamble when deciding whether or not to fix your home loan.
<a href="https://www.propertyobserver.com.au/images/2016/12/05/Screen%20Shot%202016-12-05%20at%208.17.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/12/05/Screen%20Shot%202016-12-05%20at%208.17.48%20AM.png" alt="">
"Our research shows that over the past 20 years, people who stuck with variable rates came out ahead 63 percent of the time,” he said.
“People often fix in panic, for instance in the lead up to the GFC fixing became progressively more popular as rates increased to the point where one quarter of new loans were fixed at over 9 percent in March 2008.
“There are now 240, 3-year fixed rates under 4 per cent and you can even lock in a rate as low as 3.8 percent until Christmas 2021.
"So if you’re someone who prefers the certainty of knowing your repayments, then now might not be the worst time to consider fixing.”
According to Canstar, in monthly repayment terms, CBA’s rate increase will mean a rise of more than $355 for a borrower with a 30-year fixed loan paying the new rate of 4.74 percent.
It was a time of growing uncertainty in the lending market, reflected last week when Australian Broker reported on the growing gap between the most expensive and the most affordable loan rates for residential property has widened to nearly 240 basis points.
</body></html>

jchancellor-FAypfDUnLy

Commonwealth Bank lifts fixed rates

<html><body><div class="page" title="Page 1">
<div class="section">GUEST OBSERVER <div class="layoutArea">
<div class="column">
The Australian Bureau of Statistics has released the annual State Accounts. These provide annual estimates of output growth by state, Gross State Product. Quarterly estimates are not available. 
The accounts for the 2015/16 financial year (July to June) confirm that the growth transition is continuing. The mining states of the north-west, Qld and WA, have slowed as construction work on major projects is progressively completed. The southern states have generally improved, benefitting from lower interest rates and a lower dollar.
<a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.42.51%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.42.51%20AM.png" alt="">
 
The two most populous states, NSW and Victoria, topped the growth table in 2015/16, with both expanding at an above trend pace. NSW grew by 3.5%, strengthening from 2.6%, a result closely matched by Victoria, 3.3%, up from 2.6%. 
<a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.43.49%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.43.49%20AM.png" alt="">
In South Australia, output growth of 1.9% is a little below trend, while in Tasmania growth was a modest 1.3%. 
Western Australia slowed further, moderating to 1.9%, down from 3.6% and well below the 5.8% result of two years earlier. Queensland managed a partial rebound, expanding by 2.0%, up from 1.2% in 2014/15 but still down on the 3.3% outcome for 2013/14. 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
NSW 
The NSW economy grew by 3.5% in 2015/16, up from 2.6%, the strongest result in 16 years, since 1999/00 - just prior to the Sydney Olympics. The outcome was well above the state's long-run average of 2.5% and exceeded the state government's forecast of 2.75%.
<a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.45.10%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.45.10%20AM.png" alt="">
 
Construction, real estate and financing together added 1.5ppts to growth in 2015/16, up from 0.9ppts the year prior. Positive spill-over effects contributed to stronger performances across a number of industries, including: public services (with state government revenue boosted by the housing boom); transport; wholesale; manufacturing; and communications. Service exports, benefitting from the sharply lower dollar, were also a growth engine, increasing by 12.5% in 2015/16 and adding 0.6ppts to growth, the strongest result since 1992/93 (excluding the Olympics year of 2000/01).
Victoria 
The Victorian economy expanding by 3.3%, up from 2.6%, the fastest pace since 2007/08, before the GFC. That is above trend of 2.8% and exceeded the state government forecast of 3.0%.
<a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.46.13%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.46.13%20AM.png" alt="">
 
Construction, real estate and finance together added 1.5ppts to growth in the year, up from 0.9ppts. A strengthening of conditions was evident across: retail; communications; transport; wholesale; and public services. Agriculture and manufacturing were areas of softness, both subtracting 0.2ppts. Service exports, having surged 15.4% in 2014/15, advanced by 4.0%. 
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
Western Australia 
In the West, conditions continue to moderate. Output grew by 1.9% in the past year, slowing from 3.6%. That is below trend, 4.3%, but above the state government forecast of 1.0%. 
Construction subtracted 0.4ppts from growth, following a drag of 0.3ppts the year prior, as work on major gas projects is progressively completed. Negative spill-over effects contributed to contractions across a number of industries: transport; wholesale; professional services; admin services; and manufacturing. Mining added 1.9ppts to growth, although that was down from 2.5ppts the year prior and 2.9ppts in 2013/14. 
Queensland 
The Qld economy managed a partial rebound in 2015/16, with output growth recovering to 2.0%, up from 1.0% in 2014/15. The result was still below par, of 4.1%, and fell short of the state government forecast of 3.5%. 
Construction fell at a slower rate with much of the work on gas projects already completed, subtracting 0.4ppts from growth after a chunky 1.7ppts drag in 2014/15. Manufacturing and professional services were areas of weakness, both subtracting 0.2ppts, in part due to negative spill-over effects from the mining downturn. Mining output added 0.6ppts to growth, up from 0.5ppts the previous year, as gas exports expand. Real estate was a bright spot, strengthening to add 0.3ppts to growth as the housing sector responded to lower rates. Public services experienced a strong year, adding 0.4ppts to growth, as the state increased public servant numbers. 
<a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.47.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.47.30%20AM.png" alt="">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
South Australia 
The South Australian notched up back-to-back years of moderate growth, expanding by 2.0% in 2014/15 and 1.9% in 2015/16. That is a little below the long-run average of 2.3% but above the state government forecast of 1.5%. 
Construction, finance and real estate together made a solid contribution of 0.6ppts, up from 0.4ppts the year prior. 
Mining bounced back, adding 0.2ppts, after a neutral impact in 2014/15. The rate of decline in manufacturing slowed, subtracting 0.1ppts, well below the peak drag of 0.6ptps in 2013/14. Household services added 0.4ppts to growth, broadly matching the 0.5ppts contribution in 2014/15, following a flat 2013/14. Public services had a strong year, added 0.4ppts. 
Tasmania 
Tasmanian output grew for a third year, expanding by 1.3%, after results of 1.2% and 1.5%. While this is still below average, of 2.0%, conditions have improved from the four challenging years 2009/10 to 2012/13 when output contracted by 0.4ppts. 
International exports, after a period of structural adjustment and benefitting from a lower dollar, surged 20%, adding 2.8ppts to growth. Areas of weakness were agriculture and utilities, both subtracting 0.4ppts from growth. There were record low inflows into the hydo system and the unprecedented prolonged outage of the Basslink interconnector with mainland Australia. The 'balancing item', including inter-state trade, subtracted 4.0ppts from growth.  
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Lower interest rates boost southern states: Westpac's Andrew Hanlan

<html><body>
Westpac are set to increase interest rates for foreign mortgage customers, writes the Australian Financial Review.
The bank is reported to be introducing a new loan category next month, a 'Non-Resident Reference Rate'.
Off-shore based customers who currently have loans with the bank will have to pay a 0.5% higher standard variable rate.
A Westpac spokesperson told the Australian Financial Review that the higher rates took into account the bank's "risk settings, the economic landscape, and expected changes in capital requirements for that segment of the mortgage market”. 
The decision comes after a long crackdown by the major banks on foreign lending.
Westpac announced, as of April 26. it would no longer loan money to foreign home buyers seeking to purchase residential property.
The bank has not settled any new mortgages from offshore-based clients since then.
Other major banks such as NAB and ANZ have also introduced similar policies halting new loans to foreign buyers.
Westpac has also dropped its loan to valuation ratios (LVRs) from 80% to 70% for local applications that include foreign income.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Major bank continues foreign loan clampdown

<html><body>
GUEST OBSERVER
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The six month annualised growth rate in the Westpac- Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, fell from +0.63 percent in September to +0.43 percent in October. 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The October reading is the third consecutive above trend result and follows fifteen months of persistent below trend reads. Although the growth rate has slowed a little, it is still a clear positive signal for the near term economic outlook. That signal is broadly consistent with Westpac’s forecast for growth to hold around a 3 percent pace over the course of this year and to lift to 3.3 percent in 2017.
Westpac has recently lifted its growth forecast for 2017 from 3 percent to 3.3 percent. That reflects the recent improvement in the terms of trade following the sustained boost in bulk commodity prices; a more confident assessment of the sustainability of the residential construction cycle and continuing evidence of a strong outlook for growth in both resource and services exports.
The Leading Index growth rate has lifted over the last six months from a 0.34 percent below trend reading in May to the current 0.43% above trend result. 
Offshore factors continue to dominate the sources of improvement in the Index. Of the net 77 basis points in improvement over the last six months, three of the four externally driven components contributed 90 basis points – commodity prices (45 basis points); US industrial production (25 basis points); and a steepening yield curve (25 basis points). The other component of the Index which is heavily influenced by global forces (ASX 200) actually subtracted 8 basis points from the overall movement over the six months. Of course we can expect another story in November following the post-election boom in the share market.
<a href="/images/2016/11/16/Screen%20Shot%202016-11-16%20at%2010.42.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Screen%20Shot%202016-11-16%20at%2010.42.39%20AM.png" alt="">
 
</div>
<div class="column">
Contributions from the domestic components of the Index were mixed over the six month period. Aggregate hours worked have improved, contributing 31 basis points to the lift. However, confidence measures have weighed on the Index. The Westpac-MI Consumer Expectations Index subtracted 14 basis points and the Westpac-MI Unemployment Expectations Index subtracted 13 basis points. A slowdown in dwelling approvals has also seen this component subtract 13 basis points.
The Reserve Bank Board next meets on December 6. There is virtually no chance of a policy move coming from that meeting. 
The minutes from the November meeting signalled that the Bank is in a ‘wait and see’ mode. There was an air of uncertainty around both the housing market and the labour market. Considerable time will be required before the picture around both becomes clearer. From our perspective we expect stability in the housing market and some gradual pick-up in labour market conditions as stronger overall growth lifts it out of the current ‘slow patch’. 
Consequently, we expect that a central bank, which must be questioning the effectiveness of yet more monetary stimulus, will be unlikely to see the need to adjust policy throughout the entire run of 2017. 
</div>
</div>
</div>
</div>
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</div>
</div>
</div>
</div>
</body></html>

bevans-rYk9SxEa4r

No chance of a policy move from RBA in December: Westpac's Bill Evans

<html><body><div class="cq-article-content-paras section">
The nation's biggest non-bank lender, Firstmac, and nine other lenders are raising fixed rate mortgages in a move known as the 'Trump effect,' according to lenders and market analysts.
These mortgages are being raised by up to 45 basis points.
Firstmac's rates for owner-occupiers and investors on one to three-year mortgages by 13 basis points.
Owner-occupied rates have increased to 4.09 percent and investor rates to 4.34 percent.
"International funding costs are rising, which is the fallout from the 'Trump effect'," Martin North, principal of Digital Finance Analytics, told The Australian Financial Review.
"Other lenders are likely to follow," he said.  
"I am expecting rises in mortgage rates over the summer."
"If the US do turn on the debt tap to fund infrastructure builds, this is likely to drive rates up.
"I know the banks have more deposit funding now, but they are still caught in the draft of international rate movements." 
Marnie Mortimer, managing director of loans.com.au said that global markets are set to change.
"There is no doubt global markets are pricing in a rise in rates in the medium-term and that has now been aggravated by expectations of higher inflation if Mr Trump implements his election promises," she to the Australian Financial Review.
It comes as for the first time in two years, the markets are betting that the RBA is more likely to lift rates than lower them next year.
Index swaps are pricing in an about 8 per cent chance that over the next 12 months the cash rate will rise from its current record low of 1.5 per cent, according to Credit Suisse data.
Loans.com.au had cut its three year fixed-rate home loan by 32 basis point to 3.67 percent in June.
This week the lender increased its three-year rate to 3.89 percent.  
P&amp;N Bank, the largest member-owned bank in Western Australia, has raised rates on its products by 10 basis points.
Catalyst Money increased its fixed rates by up to 30 basis points, Bank of Queensland's three-year owner-occupied and investment loans went up by up to 20 basis points and Beyond Bank by 10 basis point.
Westpac, which has about $380 billion in mortgages, is cutting the introductory discount rate on its popular "flexi first" owner-occupier and investment products by 10 basis points. 
Loans.com.au, the nation's largest online lender, has raised rates by up to 13 basis point on investor and owner-occupied fixed rates.
 
</div></body></html>

jonathanchancellor-7SQnKwU6yx

'Trump effect' begins to bite borrowers as fixed-rate mortgages increase

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<div class="column">
GUEST OBSERVER
The minutes from the November Board meeting were broadly consistent with the narrative from the recent Statement on Monetary Policy, as expected.</div>
<div class="column">
 The RBA continues to monitor the risks around the labour market, housing market, China, and private consumption, and continues to think that the “appreciating exchange rate could complicate this adjustment”.</div>
<div class="column">
 Importantly, the assessment of risks around the inflation outlook appears more balanced, with the minutes suggesting to us emerging confidence that the disinflationary pulse has peaked.</div>
<div class="column">
 We continue to see the RBA on hold with the cash rate steady at 1.5% over our forecast horizon (to end 2018). Governor Lowe is speaking later today (7:15pm AEDT) on ‘Buffers and Options’ at the annual CEDA dinner.
The minutes from the November RBA Board meeting were broadly consistent with the narrative from the recent Statement on Monetary Policy, as expected. The overall tone is quite positive, with economic growth forecast to be around potential in the coming quarters and then “a little above potential growth thereafter”.
The outlook is not without risks and the minutes again highlighted concerns around:
the medium-term risks to the outlook for China’s economic growth given high and rising debt levels (notwithstanding better near-term growth prospects) ; and, as a result, uncertainty about the outlook for the terms of trade (which had been revised higher given the recent rise in prices); excess capacity in the labour market and the impact on wages; uncertainty about “households’ expectations of their income growth” and how this impacts spending and saving decisions; and the housing market, where “members noted that assessing conditions in the housing market had become more complicated” and that “while overall conditions had eased relative to 2015, some indicators had strengthened over the previous few months”.</div>
<div class="column"> </div>
<div class="column">Importantly, the minutes suggest the RBA may be more comfortable with the inflation outlook and perhaps increasingly confident that disinflationary pressures have peaked. Indeed, the minutes repeated the assessment in the SoMP that the risks to global inflation are “more balanced” but also judged the risks to domestic inflation as “broadly balanced”, supported by “evidence that wage growth in Australia had stabilised”.
A stabilisation in wage growth is important for the outlook for inflation, particularly given already weak rental growth and the large volume of apartment supply coming on stream.
While the policy framework can accommodate periods of undershoot, rising confidence that inflation has stabilised – even if it is expected to rise only gradually – would be a welcome development.
We continue to see the RBA on hold with the cash rate steady at 1.5 percent. While the RBA’s forecasts for persistently low inflation implies an easing bias, this is tempered by a more balanced assessment of the inflation risks and ongoing financial stability concerns. 
Jo Masters is senior economist, ANZ and can be contacted <a href="https://www.anz.com/personal/" target="_blank">here</a>.
</div>
</div>
</div>
</div></body></html>

RBA's more balanced risks around the inflation outlook: ANZ's Jo Masters

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The ANZ/Roy Morgan consumer confidence rating rose by 0.3 percent to a 7-week high of 118.2 in the week to November 13.
Confidence remains above the average of 113.0 since 2014.
The minutes from the November 1 Board meeting shows that the Reserve Bank has become more alert to inflation risks. 
The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. The Reserve Bank Board minutes provides guidance on interest rate settings. 
What does it all mean?
Aussie consumers are unfazed by the US election result. Consumer confidence edged to 7-week highs in the latest week, no doubt boosted by strong gains on the Australian sharemarket late in the week. Interestingly respondents believe that the economic outlook over the medium term has improved.
There is a clear change in the Reserve Bank’s attitude to inflation. The latest Board minutes highlight the recent lift in commodity prices as well as perceptions that economic growth for advanced nations could exceed “potential growth”. As such the Reserve Bank concludes that “risks to the global inflation outlook were more balanced than they had been for some time.” Similarly Board members believe that Australian underlying inflation is “expected to return to more normal levels over time.”
Admittedly the Reserve Bank isn’t flashing warning signs on growth and inflation. But it should also be noted that in the period since the Reserve Bank Board meeting there has been the election of a new US President with growth-focussed economic policies. Metal and mining prices and bond yields have soared.
<a href="/images/2016/11/15/Screen%20Shot%202016-11-15%20at%2012.51.52%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Screen%20Shot%202016-11-15%20at%2012.51.52%20PM.png" alt="">
Simply interest rate settings are likely to remain stable until well into 2017.
What do the figures show?
Consumer confidence
The ANZ/Roy Morgan consumer confidence rating rose by 0.3 percent to 118.2 in the week to November 13.
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
Confidence is up 2.0 percent over the year and above the average of 113.0 since 2014. 
Two of five components of the index rose in the latest week.
<ul>
<li> The estimate of family finances compared with a year ago was down from +11 to +10; </li>
<li> The estimate of family finances over the next year was down from +28 to +27;</li>
<li> Economic conditions over the next 12 months was up from +5 to+6;</li>
<li> Economic conditions over the next 5 years was up from +10 to +13;</li>
</ul>
The measure of whether it was a good time to buy a major household item was steady at +35. In addition the inflation expectation 2 years ahead rose from 3.8 percent to 3.9 percent.
Reserve Bank Board minutes:
“Members noted that assessing conditions in the housing market had become more complicated. While overall conditions had eased relative to 2015, some indicators had strengthened over the previous few months. In particular, housing price growth had picked up noticeably in Sydney and Melbourne. However, housing turnover and growth in housing credit both remained lower than a year earlier, consistent with the supervisory measures that had been taken to tighten lending standards and the more cautious attitude to lending in certain segments. In addition, a considerable supply of apartments is scheduled to come on stream over the next few years, particularly in the eastern capital cities, and growth in rents in the September quarter was the slowest for some decades.”
“Considerable uncertainty remained about the strength of labour market conditions and the implications for labour cost growth.”
 “Members observed that some indicators of domestic inflation cost pressures, such as growth in the wage price index, had stabilised, albeit at low levels, and that underlying inflation was expected to return to more normal levels over time. The overall assessment was that the risks around the inflation forecast were broadly balanced.”
</div>
<div class="column">“Higher commodity prices and expectations that growth in the major advanced economies would exceed potential growth suggested that the risks to the global inflation outlook were more balanced than they had been for some time.”</div>
<div class="column"> </div>
<div class="column">“Members commenced their discussion of the domestic economy by considering how outcomes over recent years had differed from earlier forecasts, noting that the differences for key variables, including inflation, the unemployment rate and GDP growth, had been modest by historical standards.”</div>
<div class="column"> </div>
<div class="column">“Members noted that there was significant uncertainty about the outlook for consumption growth given uncertainty about households' expectations of their income growth and the influence of these expectations on their spending and saving decisions. This was particularly pronounced for households with significant debt.”</div>
<div class="column"> </div>
<div class="column">What is the importance of the economic data?</div>
<div class="column"> </div>
<div class="column">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 Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.
What are the implications for interest rates and investors?
CommSec expects the Reserve Bank to remain on the interest rate sidelines for an extended period.</div>
<div class="column"> </div>
<div class="column">Could the next move in interest rates be a rate hike rather than a rate cut? It’s important not to get too far ahead of ourselves. Inflation is still historically low. And while there is speculation of growth-focussed policies in the US, they haven’t been fleshed out. However you get a sense that inflation has reached an inflexion point. </div>
<div class="column"> </div>
<div class="column">Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Happy Aussies, Reserve Bank on inflation watch: CommSec's Craig James

<html><body>
GUEST OBSERVER
The minutes of the November monetary policy meeting of the Reserve Bank Board provided no real surprises. 
This is to be expected given that we have seen the Statement on Monetary Policy only a week or so ago.
The three areas worthy of attention in the minutes are: the Bank’s take on the recent lift in bulk commodity prices; its assessment of the trends in the labour market; and any update on its sentiment towards the housing market.
The commentary around the commodity story appears to be more positive – “the terms of trade had risen for the first time in two and a half years and had been revised higher over the forecast period.” As with most observers of this recent development the minutes emphasise “uncertainty” about the outlook for the terms of trade. However the Board offers no speculation as to the sustainability of these increases.
There is a much longer than normal discussion around the labour market. The Board noted that “the current experience of relatively strong growth in part time employment (compared to full time employment) was unusual insofar as such a pattern was typically associated with rising unemployment rates." The discussion also clarified the Board’s view on the state of spare capacity in the labour market emphasising that it depended up “how many additional hours workers were seeking” which they concluded was not readily available data. The minutes confirmed that the unemployment rate is expected to edge lower although forecasts incorporated a small downward revision to the outlook for employment growth and more than compensated by a fall in the participation rate.
Just as there is uncertainty around the outlook for the labour market, the Board has become more ambivalent around the housing market: “Members noted that assessing conditions in the housing market had become more complicated.… housing price growth had picked up notably in Sydney and Melbourne but turnover had slowed.” The Bank continues to make the statement of fact: “A considerable supply of apartments is scheduled to come on stream in the next few years” but provides no guidance as to its view on the implications for both prices and the medium term outlook for activity. We are, at least, pleased however that the Board recognises that building activity is likely to support growth “for some time yet.”
The views on inflation are more confident. The forecast that underlying inflation will lift from 1½% in 2016 to 2% in 2017 is supported by the key assertions that firstly that the slowdown in labour costs has bottomed out and secondly that the disinflationary effect of retail competition is expected to dissipate. On the other hand, low rental inflation is expected to persist while the inflationary effect of the fall in the AUD appears to have run its course.
Internationally, the turning point in government bond rates is recognised partly because expectations of further increases in asset purchases by the ECB and BoJ have been toned down. (The Board meeting occurred before the US election had taken place).
On the growth front downside risks to the near term outlook for China have diminished although the Board continues to note that longer term risks to China’s economy associated with high and rising debt remain.
The conclusion in the key “Considerations for Monetary Policy” section emphasises the ongoing neutral policy bias.
Conclusion
Westpac has consistently argued that, following the rate cut in August, the Bank was likely to keep rates on hold through-out the course of 2016 and 2017. The risk to that view remains to the downside associated with an unexpected extended deterioration in the labour market. As discussed, the Board is not confident about the outlook for the labour market. The forecast that the unemployment rate will remain steady is qualified by a number of conditions particularly around the assessment that the data for the best measure of spare capacity is “not readily available.”
Our view on the growth and employment outlook is more positive and we expect that the probability of the type of adverse development in the labour market that would trigger a further policy response remains quite low.
While markets have substantially priced out the prospect of rate cuts next year, in line with our view, there is some evidence that they are flirting with the possibility of a tightening in the second half of 2017. From our perspective that prospect is extremely remote, particularly given the inflation outlook and given our own forecasts for economic growth.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

Reserve Bank minutes highlight uncertainty around the labour market, housing: Westpac's Bill Evans

Housing markets getting more complicated: minutes of the November 2016 RBA meeting

<html><body>
Australia’s largest online lender loans.com.au says that fixed mortgage interest rates will soon increase across the board.
This follows rises in key swap rates driven by the election of Donald Trump as president of the United States.
Managing director Marie Mortimer said 3, 4, and 5-year swap rates had been drifting up for six weeks. 
It really jumped after Mr Trump’s victory in the expectation that his promised tax cuts and infrastructure spending would drive up prices.
“There is no doubt that global markets were pricing in a rise in rates in the medium-term and that has now been aggravated by expectations of higher inflation if Mr Trump implements his election promises,” Ms Mortimer said.
“These higher rates are now being reflected in the fixed rates that lenders can offer homebuyers with at least six Australian lenders raising their fixed-rates in the last three weeks and many more to follow shortly.”
According to Bloomberg, since mid-September this year, 3-year swap rates have risen from 1.69 percent to 1.99 percent, while 5-year swaps have risen from 1.97 percent to 2.40 percent.
In June, loans.com.au slashed its 3-year fixed rate home loan by 32 basis points to a record low of 3.67 percent (3.88 comparison rate).
However it warns that at the time that it probably represented the bottom of the cycle for fixed rates.
This week, loans.com.au increased its 3-year fixed rate to 3.89 percent, while cutting selected variable rates.
The largest variable rate cuts included its Offset (interest only) loan for homebuyers which was reduced by 19 basis points to 3.87 percent and its Essentials (principal and interest) loan for refinancers which fell by 30 basis points to just 3.79 percent. Other key rate cuts are shown below.
<a href="/images/2016/11/15/Screen%20Shot%202016-11-15%20at%2010.27.32%20AM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Screen%20Shot%202016-11-15%20at%2010.27.32%20AM.jpg" alt="">
</body></html>

Interest Rates

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Interest Rates

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News