<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Investor Loans

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<div class="cq-article-content-paras section">
<p>Treasury secretary John Fraser has indicated he could seek further regulatory efforts to curb risky property lending.</p>
<p>It came as he warned that debt levels make households vulnerable.</p>
<p>Fraser told a Senate committee hearing today that even though Australian households hold more than $12 trillion in assets - including housing and superannuation - the $2 trillion in outstanding debt means they have become more vulnerable to increases in interest rates in future.</p>
<p><span>"While there are risks in the global outlook, the greatest impact we can have on our own circumstances will come from getting our own house in order," Mr Fraser told a Senate estimates hearing in Canberra today.</span></p>
</div>
<div class="cq-article-content-paras section">
<p>"The Reserve Bank will be mindful of this when thinking about domestic monetary policy, though global monetary conditions can also impact upon the wholesale funding costs of Australian banks," he said.</p>
<p>Fraser also told the committee that he expects wages growth to pick up as unemployment falls.</p>
<p>Fraser advised he had been encouraged by signs of a pick-up in wages growth in some major cities and regional centres.</p>
<p>Mr Fraser said he was aware of signs of wages growth in the construction sector in Victoria, among semi-skilled workers in north-west Sydney and construction workers in regional centres.</p>
<p>"I don't want to over-egg it but I think it is starting to pick-up a little," he said.</p>
<p>The Guardian reported<span> Treasury officials admitted they were caught off-guard by the extent of the wages slowdown since the global financial crisis, saying the economic “scars” from the crisis have run deeper than expected in Australia.</span></p>
<p>On house price growth Fraser suggested it "appears" to have eased in the big cities.</p>
<p>He said there were "welcome signs" of moderation in investor and interest-only borrowing, but that it was still too soon to relax.</p>
<p>"While banks' progress against these measures has been positive, regulators will need to think carefully about whether future efforts to maintain financial stability should lean against cyclical excesses or address structural risks within the financial system," Fraser said.</p>
<p>Fraser was speaking ahead the latest quarterly inflation figures.</p>
<p>According to the Australian Bureau of Statistics (ABS), headline CPI rose by 0.6 percent over the September quarter, leaving the change on a year earlier at 1.8 percent.</p>
<p>Economists were anticipating an increase of 0.8 percent.</p>
<p>The quarterly increase was driven by higher utility, tobacco, and travel prices, offsetting weakness in vegetable, fuel and telecommunication costs.</p>
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j.ballantyne1990-6AQqhLzZaK

 Investors could face further clampdown: Treasury's John Fraser warns

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<div>It certainly seems that way.</div>
<div> </div>
<div>New South Wales investor loans burned 49 percent higher than a year earlier in January as investors chase Sydney property prices higher.<br><br>
</div>
<div>In Victoria, investor loans were up by 35 percent, with Melbourne dwelling prices also rising. </div>
<div> </div>
<div>On the flip side, the value of investor loans in Western Australia was down by 16 percent year-on-year. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A1.jpg" alt=""></p>
<p>In Darwin and the Northern Territory, meanwhile, the value of investor loans has dropped to the lowest level in a decade.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A2.jpg" alt=""></div>
<p><br><span>Such can be the reflexive nature of markets.</span><br><br><strong><span style="text-decoration: underline;">Total lending pulls back</span></strong></p>
<div>Overall, January wasn't a particularly strong month for total lending according to the Australian Bureau of Statistics (ABS), with a decline in commercial lending in the month. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A3.jpg" alt=""></div>
<div class="separator"> </div>
<div>After a recent spike in November - a near record month - total lending pulled back quite sharply at the beginning of 2017.<br><br>In fact, the result for total lending at $67.6 billion was a 5-month low. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A4.jpg" alt=""></div>
<p><span>Meanwhile, investors pile into Sydney and Melbourne, fearful of changes being made to legislation.</span></p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
<p><span> </span></p>
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pwargent-M4siyDbqQY

Rising prices beget more buyers?

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<p>Loans.com.au said it will keep up its focus on the investor market despite recent moves by the Commonwealth Bank and its subsidiary Bankwest clamping down on refinancing by investors.</p>
<p>Marie Mortimer, managing director, said borrowers who are turned away by BankWest or CBA "should come to us instead because we have much lower rates and we still want their business.”</p>
<p>She said <a href="https://loans.com.au/" target="_blank">loans.com.au</a> had maintained its focus on the market through its investor package which cut rates for investors who brought over both their home loan and investment loan.</p>
<p>“We want people with both a home loan and an investment property loan to come to us so we are offering a market-leading rate on their investment loan to encourage that,” she said. </p>
<p>The online lender has packages starting from 3.59 percent, compared to most banks’ investor loan rate of 4 percent or more.</p>
<p>Mortimer said BankWest’s move may be the next phase of a retreat from investment lending by the banks.</p>
<p>Bankwest said earlier in the week it will no longer accept applications from new customers seeking to refinance their stand-alone investment lending from other financial institutions.</p>
<p>BankWest said the move would impact a very small number of applications and existing customers would not be affected. </p>
<p>A BankWest spokesperson was cited by Mortgage Business as saying, “Bankwest continues to assess investment lending applications from current and prospective customers who meet relevant criteria within risk appetite,” they said.</p>
<p>“This aligns with Bankwest’s commitment to supporting a stable national housing market and sustainable economy in line with regulatory guidance.”</p>
<p>Commonwealth Bank, Australia’s largest bank, followed Bankwest in halting applications for new refinancing for investor loans, in a move that could see other lenders in the industry follow.</p>
<p>In a notice to mortgage brokers, CommBank said they are “committed to consistently delivering the best customer experience for home buyers, upholding the highest level of professional standards, and meeting our responsible lending and regulatory obligations,” according to a story published in news.com.au.</p>
<p>Home Loan Experts’ managing director Otto Dargan was cited as saying the Commonwealth Bank had to act to meet the  Australian Prudential and Regulation Authority’s 10 per cent cap on growth in investment lending.</p>
<p>“If they are too far below it (the 10 per cent cap) then they are losing market share,’’ he said.</p>
<p>“If they go over it then APRA will require them to set aside more capital which is very costly for the bank.”</p>
<p>He said CBA had “missed the mark” and had to take immediate action to reduce its investment lending.</p>
<p>Investment home loans represent 35 percent of CBA’s mortgage lending.</p>
<p>Mortimer of loans.com.au added that, “In recent months, a number of lenders have raised their rates or tightened their lending criteria in this space because of fears that they are over-exposed to investors.” </p>
<p>“But we are excited about the prospects for the investment market and working as always to build long-term relationships with new property investors.”</p>
<p>During the month of December, lending to property investors across Australia grew at 0.8 percent, or at a 10.1 percent annualised rate, she said.</p>
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prateek24-ezbwHMbNAk

Loans.com.au woos investors amid CBA-Bankwest moves to shun refinancing

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<div class="column">GUEST OBSERVER</div>
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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 percent in November after falling by 0.6 percent in October. It was only the second rise in lending in five months. </div>
<div class="column"> </div>
<div class="column">The value of loans rose by 2.2 percent in November with owner loans up 0.4 percent and investor loans up 4.9 percent.</div>
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<br>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014.</div>
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<br>The inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</div>
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<br>The Bureau of Statistics (ABS) reported that new vehicle sales rose by 0.3 per cent in December. The CommSec Luxury Vehicle index hit record highs in 2016 with sales of 17 luxury marques up 12.1 percent on a year ago. </div>
<div class="column"> </div>
<div class="column"><a href="https://www.propertyobserver.com.au/images/2017/01/17/Screen%20Shot%202017-01-17%20at%202.26.13%20PM.png" target="_blank">Click to enlarge</a></div>
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<p>On its own, the lift in home loans doesn’t look overly concerning – especially given it was only the second rise in the past five months. But couple it with the lift in home prices in the latter part of last year and it suggests that the housing landscape may continue to cause policymakers a little bit of angst over 2017. Even more so when you delve a bit deeper into the data and realise that the lift in the value of loans was largely driven by investors.</p>
<p>The value of loans by investors surged by 4.9 per cent in November to be up 21.4 over the year – the strongest annual growth in 19 months.</p>
<p>If home prices continue to lift, with growth largely driven by investor loans, regulators may look at further restrictions to curb lending.</p>
<p>Household confidence remains just shy of recent four month highs. And more importantly confidence is holding well above longer-term averages. In particular, the measure of whether it was a good time to buy a major household item lifted to the highest levels in five months. No doubt the discounts offered by retailers post-Christmas are enticing households to spend a little bit more freely. </p>
<p>Interestingly the inflation expectation 2 years ahead was at 4.6 per cent in the past week - a 13-month high. Inflation expectations have now held above 4 per cent for the past 5 months. There is no doubt that inflationary pressures have bottomed out and are likely to start lifting.</p>
<p>Annual new vehicle sales are just shy of recent record highs, suggestive of underlying strength in business and consumer sentiment and finances. But the trends aren’t uniform with sales of sports utility vehicles consistently setting new highs while passenger car sales have now fallen to 20- year lows in rolling annual terms. </p>
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<div class="column">What do the figures show?</div>
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<div class="column">Housing finance - number</div>
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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 per cent in November after falling by 0.6 per cent in October. It was only the second rise in lending in five months. Excluding the refinancing of dwellings, the number of loans was up by 2.1 per cent.<br><ul>
<li>  The number of new home loans was down by 2.6 per cent on a year ago.</li>
<li>  Loans by owner-occupiers for the construction of homes rose by 2.3 per cent in November.</li>
<li>  Loans to buy newly-erected dwellings rose by 3.3 per cent.</li>
<li>  Loans for the purchase of established dwellings (excluding refinancing) rose by 2.0 per cent.</li>
<li>  The number of refinancing transactions fell by 1.2 per cent.</li>
</ul>
<p>Lending across states/territories in November: NSW (+1.5 per cent); Victoria (+0.8 per cent); Queensland (+2.4 per cent); South Australia (-1.3 per cent), Western Australia (-0.7 per cent); Tasmania (-1.0 per cent); Northern Territory (+2.7 per cent); ACT (+0.2 per cent).</p>
<p>Housing finance - value</p>
The value of new housing commitments (owner occupier and investment) rose by 2.2 per cent in November after rising by 0.5 per cent in October. Owner-occupier loans rose by 0.4 per cent but investment loans rose by 4.9 per cent.<br><p>The value of loans by owner-occupiers and investors to build new homes rose by 14.2 per cent in November after falling by 1.7 per cent in October. The value of loans to build new homes rose to an 8-month high of $3.07 billion in November.</p>
<p>Housing finance – other statistics</p>
<p>The proportion of first-time buyers in the home loan market rose from 13.7 per cent to 13.8 per cent in November (long-term average 19.4 per cent).</p>
The proportion of fixed rate loans eased from 12.8 per cent to 12.5 per cent in November. And the average home loan across Australia stood at $376,600 in November, up 3.6 per cent in the month but down 1.6 per cent on a year ago.</div>
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<p><span>Consumer confidence </span></p>
<p>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014. Two of the five components of the index rose in the latest week:</p>
<ul>
<li>  The estimate of family finances compared with a year ago was down from +13 to +8;</li>
<li>  The estimate of family finances over the next year was down from +33 to +32;</li>
<li>  Economic conditions over the next 12 months was unchanged at +2;</li>
<li>  Economic conditions over the next 5 years was up from +11 to +12;</li>
<li>  The measure of whether it was a good time to buy a major household item was up from +41 to +43 – the strongest reading in 5 months.</li>
</ul>
<p>In addition the inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</p>
<p>New car sales:</p>
According to the Australian Bureau of Statistics (ABS) new vehicle sales rose by 0.3 per cent in December after falling by 0.7 per cent in November. Passenger car sales rose by 3.6 per cent, while sales of sports utility vehicles fell by 3.3 per cent and sales of “other” vehicles (includes utilities, panel vans, cab chassis, goods carrying vans, rigid trucks, prime movers, non-freight carrying trucks, and buses) rose by 0.7 per cent.</div>
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<br>New vehicles sales were up by 0.2 per cent over the year. Passenger car sales in December were down by 4.2 per cent over the year, while SUVs sales were unchanged and “other vehicles” were up by 10 per cent.<br><p>In rolling annual terms, 1,178,133 new vehicles were sold over the 2016 calendar year. Sales of SUVs (441,023) eased from record highs in annual terms, while annual sales of “other” vehicles stood at a record high of 250,853. Sales of passenger vehicles fell to a 20-year low of 486,257 in the year to December.</p>
<p>CommSec Luxury Vehicle index</p>
The CommSec Luxury vehicle index hit record highs in 2016. Sales of 17 luxury marques totalled a record 106,658 units in 2016, up 12.1 per cent on a year ago. Luxury vehicles now account for 9.17 per cent of total vehicle sales and a record 11.50 per cent of passenger cars and SUVs alone.</div>
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<br>The CommSec Luxury vehicle index includes Audi, Aston Martin, BMW, Bentley, Ferrari, Hummer, Jaguar, Lamborghini, Lexus, Lotus, Maserati, Maybach, Mercedes-Benz, Mclaren, Porsche and Rolls Royce.</div>
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<br>In 2016 record sales were recorded by Audi, BMW, Ferrari, Jaguar, Lamborghini and McLaren.<br><p>Luxury auto sales have been running at a double-digit annual rate for almost four years.</p>
<p>What is the importance of the economic data?</p>
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.</div>
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<br>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.<br><p>The Australian Bureau of Statistics provides seasonally adjusted and trend estimates of industry data. The Federal Chamber of Automotive Industries releases estimates of car sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.</p>
<p>What are the implications for interest rates and investors?</p>
<p> Looking forward, policymakers will keep a close eye on how the rebalancing of the domestic economy (away from mining investment) is keeping pace. Inflation and housing activity are likely to be closely watched over 2017. </p>
<p><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></p>
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Investor loans soar, inflation makes a comeback: CommSec's Savanth Sebastian

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<p class="p1"><span class="s1">GUEST OBSERVER</span></p>
<p class="p1"><span class="s1">In late 2015, the major banks began to feel the heat from APRA regarding their exposure to residential investor loans and how their appetite for this type of funding was driving new development product and impacting the market. </span></p>
<p class="p1"><span class="s1">Prior to this inevitable crack down by ASIC and APRA in their respective spheres of responsibility, the major banks enjoyed a long and prosperous period where they were largely unchallenged in the construction finance sector. </span></p>
<p class="p1"><span class="s1">However, now we are seeing changes as the capital requirements imposed on the banks start to take effect. Importantly, all political parties support the continued application of pressure via the regulatory levers to ensure that their contingent exposure to underwriting the banks deposit funds is appropriately controlled and “well managed”. This is because Australians have an expectation that their savings accounts will always be there when things get tough and they expect their politicians to ensure this is so. No political leader wants to be explaining why they allowed unscrupulous bankers to lose the hard earned savings of their Mum and Dad constituents. </span></p>
<p class="p1"><span class="s1">These overriding regulatory requirements are not temporary responses to a specific event; they represent an ongoing constraint that will impact the pricing and structure of all future construction loans, resulting in permanent changes to bank lending policies which will now fluctuate within certain lower risk parameters. </span></p>
<p class="p1"><span class="s1">This represents a new world order in construction finance and has been clearly demonstrated with all four banks being either closed for “new to bank” business; or, operating with significantly reduced appetite and lending parameters over the past 10 months. </span></p>
<p class="p1"><span class="s1">These loans are assessed individually via a complex risk model that requires all the relevant factors to be input to ensure the banks satisfy and maintain the accepted risk levels required of them by APRA. As a consequence, there are far fewer “discretionary” decisions available to your bank manager when he deals with an application. </span></p>
<p class="p1"><span class="s1">Developers can no longer expect their house bank to provide the necessary funding because “they have always done it in the past”. As many are learning, the fact that they may have had a long-term relationship with their bank is of no consequence and doesn’t guarantee an ability to borrow funds on the same terms that they have become accustomed to. </span></p>
<p class="p1"><span class="s1">With the banks now limiting their exposure to the sector and pricing risk far more keenly than in the past, a wide range of alternative debt providers and equity players are entering the market or broadening their existing reach. The challenge for today’s developer is identifying which ones best fit both their business and specific project needs. This in turn requires a readjustment of expectations as to what constitutes an appropriate finance cost when assessing project viability as the cost of these funds is generally between 2-3% higher. </span></p>
<p class="p1"><span class="s1">While all this sounds like the industry has become a lot more complicated, and in some ways it has, it also means there are far more options available to developers, enabling them to fulfil their project ambitions and maximise their available capital. Just as the housing mortgage market was completely restructured with the coming of the wholesale funds and brokerage structures, we expect to see the construction finance industry undergo a similar metamorphosis, ultimately with similar positive results for developers. </span></p>
<p class="p1"><span class="s1">With the re-emergence of various second tier lenders, investment funds, managed trusts and private lenders all vying for a share of what will continue to be a growingly sophisticated market, the challenge for the governments and the regulators will be ensuring that Mum and Dad investors in search of better returns get the appropriate levels of protection that their bank funds do. </span></p>
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<p><em>This article appeared in Holden CAPITAL's Special Edition Market Update - Winter 2016 Insights from the Front Line of Construction Finance .</em></p>
<p><em><em>This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arranged over $300 million of construction finance in 2015 across 52 projects. To discuss your project finance requirement please call (07) 3171 4200 or visit <a href="https://www.holdencapital.com.au/" target="_blank">www.holdencapital.com.au</a></em></em></p>
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Construction finance industry likely to undergo metamorphosis: Holden Capital

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<div>As promised, a quick look around the traps at where APRA's cooling measures have slowed investor lending the hardest, and where some or all of the hot air is coming out of the investor market.</div>
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<div>New South Wales saw $5.6 billion of investor loans in September 2015, taking activity back down to the breached for the first time in December 2014 - though as I analysed here previously, owner-occupier lending has (apparently) soared to unprecedented heights in recent months, more than compensating for the decline.<br><br><span><span>Macroprudential measures undertaken to cool housing markets will inevitably have some unintended consequences, one of which may be that lenders demanding high returns on target potential borrowers with existing equity, which in a curiously reflexive manner might temporarily skew lending towards markets which have already outperformed through the cycle (i.e. Sydney).</span></span><br><span><span><br></span></span><span><span>That's one to watch for next year, but for now total lending for NSW housing of more than $14 billion in September was the biggest month on record, even if the numbers were somewhat fishy.</span></span>
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<div>It's a near-identical story in Victoria, with a notable decline in investor lending, but a corresponding leap in owner-occupier lending.</div>
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<div>
<span>In Queensland the decline in investor lending has been relatively marked from $2.0 billion in March, although there was a slight rebound in September to $1.67 billion. A spirited increase in owner-occupier lending means that total lending has increased moderately over the past year.</span><br><br><span>Queensland's property markets are something of a multi-speed affair, with certain areas of SEQ - such as some sub sub-regions within Brisbane and the Gold Coast - faring relatively well, but many regional markets decidedly in the doldrums. </span>
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<div><span>Not much in the way of good news to report for Western Australia, with investor lending tailing off sharply in recent months from $1.26 billion in December 2014 to just $0.82 billion in September 2015.</span></div>
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<div>
<div>It hasn't been a great time for the South Australian economy in recent years, with the trend unemployment rate of 7.7% way above the national average of 6.1%, while employment growth has been non-existent for years now.<br><br>Fortunes for the state waned further this week when it was finally confirmed that Arrium will cut 250 jobs from its Whyalla steelworks, with further cuts expected from Alinta.</div>
<div>
<br>Despite the ongoing labour market shock, South Australia is home to a number of relatively affordable property markets after so many years of lacklustre growth.<br><br>As such South Australia is also the one state where investor lending is actually in an uptrend on a 12mMA basis, with the $469 million in investor lending in September representing a solid increase on the prior year equivalent figure of $390 million.</div>
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<div><span>The outlook has been looking up for the economy and labour market of Tasmania lately, but a lack of existing equity in the market following no real dwelling price growth for close to a decade appears to have knocked the investor market for six, with volumes declining from a record high $86 million in June to only $60 million in September.</span></div>
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<div><span>The Australian Capital Territory (ACT) continues to meander along, with investor lending pulling back since June here too, declining from a record spike of $224 million to $142 billion.</span></div>
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<span>Finally, there are no positives at all to draw from this data series for the Northern Territory, where investor lending has all but collapsed over the past year from $122 million to $75 million.</span><br><br><span>With elevated vacancy rates and nose-diving rents, Darwin and other parts of the Top End are heading for a potentially sharp and long overdue property market correction.</span>
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<span>Overall, it has become clear that APRA's cooling measures have worked quickly and effectively, knocking out a good deal of riskier investor lending right across the board.</span><br><br><span>The property markets story for 2016 will largely be of to what extent lenders can push up the market share of owner-occupier loans in order to compensate for the evident decline in investor volumes.</span>
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<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>
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APRA's traps and investor loans: Pete Wargent

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<div class="column"><span style="line-height: 1.3em;">GUEST OBSERVER</span></div>
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<div class="column"><span style="line-height: 1.3em;">The latest lending statistics show a mild consolidation in July, although the result is not a cause for concern – especially given that lending is holding just 4% shy of the seven-year highs reached in April. </span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">The real driver of lending over the past year has been the housing sector and in that context it is investor housing that has driven the strength. However the tighter bank lending standards are starting to have an impact in terms of the housing finance data - loans for construction of new dwellings has now fallen for three consecutive months.</span></div>
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<br><span style="line-height: 1.3em;">It is important to realise while housing activity will continue to be the backbone of the economy over the coming year, it is starting to show signs of starting to cool – especially when it comes to irrational exuberance. If there is an anticipated pullback in home lending policymakers would be hoping that activity amongst the business sector lifts from here.</span>
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<br><span style="line-height: 1.3em;">There would be mild disappointment in the fall in business loans in July. Commercial loans are now down 5% on a year ago. Business conditions are healthy, however businesses are still rather tentative about borrowing. The key driver of future lending will be an ongoing improvement in labour market conditions, rise in </span><span style="line-height: 1.3em;">business hiring intentions and lift in consumer confidence. </span>
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<div class="column"><span style="line-height: 1.3em;">The Reserve Bank will dominate headlines next week with a number of releases and speeches. However the focus will be squarely on the Reserve Bank Governor, when he testifies in front of the House of Representatives Economics Committee on Friday. It will be interesting to see the Governors views when it comes to the non- mining business investment and how the housing sector is likely to evolve with the tighter lending standards. CommSec expects no change in interest rates over the next year.</span></div>
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<p><span>What do the figures show? </span></p>
<p><span>Lending finance </span></p>
<p><span>Total new lending commitments (housing, personal, commercial and lease finance) fell by 0.1% in August to $74.1 billion after a 1.3% rise in June. New loans are down 1.1% over the year.</span></p>
<p><span>Housing finance: The seasonally adjusted measure of construction and new purchases rose by 2.2% in July while alterations &amp; additions rose by 0.9%. Home loans are up 13.4% on a year.</span></p>
<p><span>Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell by 2.7% in July. Revolving credit commitments fell by 13% while fixed lending commitments fell by 0.9%. Business loans are down 5% over the year.</span></p>
<p><span>Personal finance: The seasonally adjusted series for the value of total personal finance commitments fell by 2.6% in July after rising by 0.9% in June. Revolving credit commitments rose by 2.6% and fixed lending commitments fell by 5.8%. Personal loans are down 12.7% over the year. Within personal fixed finance commitments, finance for used cars was down 2.3% on a year earlier while loans for new cars were up by 8.8%.</span></p>
<p><span>Lease finance: Lending rose by 60.2% in July. Lease finance rose by 68.9% over the year. What is the importance of the economic data?</span></p>
<p><span>Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.</span></p>
<p><span>What are the implications for interest rates and investors?</span></p>
<p><span>The Reserve Bank would be comfortable about the mix of borrowings: Aussie businesses are tentatively borrowing - in a measured way. Still, the Reserve Bank would be watching the recent drop in consumer confidence a lot more closely.</span></p>
<p><span>The weaker Aussie dollar is providing solid stimulus to the economy at present and the Reserve Bank will continue to assess the impact on the economy over the next few months. CommSec expects no change to interest rates over the coming year. </span></p>
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<p> </p>
<p><em><span>Savanth Sebastian is an economist for CommSec. You can follow him on Twitter <a href="https://twitter.com/commsec" target="_blank">here</a>.</span></em></p>
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Tighter bank lending standards showing impact: Savanth Sebastian

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<p><span>CUA has reported a profit of $48 million for 2014-15.</span></p>
<p><span>Its profit from its banking business rose 10.7% to $48.79 million, while new loans grew by almost 55%.</span></p>
<p><span>CEO Rob Goudswaard says the credit union is considering making arrangements with peer-to-peer lenders.</span></p>
<p><span>CUA, the country's biggest credit union, said its focus was improving the net interest margin, which has fallen from more than 2% to 1.9%.</span></p>
<p><span>Rob Goudswaard reported new loan growth will not be as strong in 2016 as it must peg back growth in its investor loans, which is at 16%, above the banking regulator's 10% growth cap.</span></p>
<p><span>CUA's chief market is owner occupier loans, which makes up 80% of its mortgage book. </span></p>
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