The most elevated residential tower in Palm Beach, <a href="https://www.apartments.com.au/new-apartments/corallo-palm-beach-5-palm-beach-avenue-palm-beach-qld-4221">Corallo</a>, has officially launched this week, however only a handful of buyers will have an opportunity to buy in to the 17-storey project.

The $200 million mixed-use project includes ground floor dining and retail and is considered so valuable its developer, <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a>, will be staging its release of one-, two- and three-bedroom apartments and penthouses to the market.

[smartcode_project:default project_id=112194 project_image_fid=806]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> International, Director, David Higgins, said the development’s location just metres from the beach on the corner of Palm Beach Avenue and the Gold Coast Highway influenced the sculptural design by the acclaimed Plus Architecture studio.

“<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> locals understand the rare opportunity here at Corallo, particularly being the tallest building in the suburb and its proximity to the beach and local restaurants, and they’ve represented the bulk of pre-launch enquiries,” Higgins said.

“The orientation of the apartments captures views of the coastline from Surfers Paradise to Currumbin, and the diversity of floor plans and apartment types provide an exceptional level of choice.

“The first release includes just 59 one-, two and three-bedroom apartments and two half-floor penthouses, with flexible use designed to appeal to both owner-occupiers and investors."

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=799]

In addition to the ground floor amenity, residents will also have access to a private dedicated wellness level offering 734 sqm of resort-style amenities including a pool, cold plunge, wet deck, steam room, sauna, gym, day bed, fire pit, barbecue area, dining area and yoga/stretch deck.

The project is located within walking distance of Tallebudgera Creek, Burleigh Heads village, Currumbin Alley and Palm Beach Currumbin High School. The Gold Coast Airport is under 10 minutes away.

[smartcode_project:default project_id=112194 project_image_fid=814]

Higgins said Palm Beach remained a hotly contested suburb for home buyers, with prices doubling in the past five years.

“What makes Corallo so appealing to the local market is the diversity of apartment types and pricing, with one-bedroom apartments starting from $841,000 and two-bedroom apartments starting from $1.34 million,” he said.

“The ground floor retail and dining offering will further expand on Palm Beach’s village atmosphere and create a meeting place for locals, and those opportunities for connection are highly valued.”

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=807]

The on-site sales display, which includes a fully fitted kitchen, bathroom and bedroom, will be open until early works commence in Q1 2026. Each residence at Corallo will feature premium finishes including natural stone, artisanal brickwork, and warm copper accents.

Changfa Group has a two-decade history of delivering premium developments in Australia and internationally, having recently completed its collection of premium townhomes at Lyra, Hope Island, as well as apartment projects in Leichhardt, Carlingford, and Chatswood in New South Wales.

[smartcode_project_cta:default project_id=112194]

Joel Robinson

$200 million Corallo Palm Beach launches with limited apartment release

In a move that aligns with NSW's accelerated planning incentives for affordable housing, developer&nbsp;<a href="https://www.apartments.com.au/developers/the-one-collection">One Collection</a> has revised its Hills District apartment plans, and taken it to the NSW Government, to secure approval.

The developer, which is currently delivering Horizon Hurstville, is seeking to add 80 more apartments to its <a href="https://www.apartments.com.au/new-apartments/the-one-castle-hill-16-dawes-avenue-nsw-2154">Castle Hill development</a> near Castle Towers. They already have approval for 280 apartments across eight six-storey buildings.

<img alt="One Collection" data-entity-type="file" data-entity-uuid="b3c298ba-1cc5-4db7-9872-607c75f8ceca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.22%E2%80%AFAM.png?VersionId=wN9KpFIu5ENSGZLLsaZgXQHrXcwEO3Vd" />

Now on the desks of the NSW Department of Planning is 360 apartments, 48 of which will be dedicated to affordable housing.&nbsp;Affordable housing is to be “fully integrated within the building and visually indistinguishable,” according to the planning submission.

The 15,697 sqm block, an amalgamation of 16 sites, spans across Dawes Avenue, Hughes Avenue, and Camdan Crescent, sits 550m from Hills Showground Metro Station.&nbsp;

"The existing context is quickly changing from free-standing homes into residential flat buildings in line with the Hills Showground Precinct planning framework," Place Studio noted.

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="3ec24948-c185-48fa-af8b-ed25adf302bf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.04%E2%80%AFAM.png?VersionId=zNDX.IeRROX1RlDeYcS38xn8w_dqgU2t" />

They said the design was informed by the site's unique condition of having three street frontages and was developed to to respond sensitively to iots surrounding context.

"The design adopted a conventional perpendicular alignment to the primary street frontage. The massing of the development was carefully modulated to align with the evolving character of the neighbourhood. The design ensured that the scale was not excessive or out of context, but instead contributed to a cohesive urban form consistent with emerging developments in the area."

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="f83ffdaa-f960-469d-b6fe-abcece57c9ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.09%E2%80%AFAM.png?VersionId=4oKlCyfaKes7jLi1_EMoqa46w2h_YvDZ" />

The apartment mix will be 46 one-beds, 168 two-bed apartments, and 146 three-bedroom units, with 631 parking spaces proposed.

Along the street frontages, the building heights are four storeys with a 7.5 metre setback, and eight storeys with an 11.5 metre setback. It should cost about $150 million to build.

One Collection works hand-in-hand with the respected development and construction firm Masscon, which has built a reputation for leveraging its expertise in the built environment to take on developments others can't. That's what they're achieving at Horizon Hurstville, having taken over the project to deliver it.

First look: One Collection advances plans for Castle Hill apartments

At Yarra’s Edge, <a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a>’s newest tower under construction, <a href="https://www.apartments.com.au/new-apartments/trielle-at-yarra-s-edge-docklands-16-point-park-crescent-docklands-vic-3008">Trielle</a>, sets a new benchmark for elevated living. Rising 45 storeys, 12.5 metres from the Yarra River, the landmark building offers residents access to a private wellness retreat and spa, a resident-only golf simulator, and an elegant lounge, dining and bar complete with a self-playing piano, all without ever having to leave home.

Now, that sense of elevation has reached new heights with the Aerus Sub-Penthouses, a limited release of half-floor riverfront residences on the Collins St axis where the sought-after street meets the Yarra River.

Each Aerus Sub-Penthouse, located across levels 42 and 43, represents the most expansive offering within Trielle, aside from the yet-to-be-revealed crowning penthouses. Spanning between 269 and 301 sqm, these residences are designed to capture natural light and uninterrupted views of the city skyline, Yarra River, and Port Phillip Bay.

[smartcode_project:default project_id=114216 project_image_fid=3784]

Among the collection are three-bedroom sub penthouses, complemented by a media room, and expansive four-bedroom layouts. All include panoramic living areas and oversized master suites with luxury ensuites reminiscent of a five-star hotel, complemented by dedicated dressing rooms finished in timber and natural stone.

The interiors have been crafted by <a href="https://www.apartments.com.au/architects/mirvac-design">Mirvac Design</a>, the developer’s award-winning in-house architecture and design team. Every material has been chosen for quality and longevity, from sculpted stone island benches with feature soft wash LED lighting to bespoke joinery and chevron timber oak flooring.

Kitchens are fitted with a BORA induction cooktop with integrated downdraft extractor, alongside Gaggenau appliances, including a fridge, freezer, and wine fridge. The adjoining butler’s pantry incorporates the exclusive Gaggenau Minimalistic Series including oven, steam oven, microwave, coffee machine and warming drawer, all concealed behind handleless glass panels for a clean, integrated presentation. Bathrooms feature custom Apaisar freestanding baths and basins and natural stone benchtops, continuing Mirvac’s design emphasis on tactile, timeless materials.&nbsp;

<img alt="Trielle at Yarra's Edge, Docklands" data-entity-type="file" data-entity-uuid="c00be724-b0f1-47c0-afed-54f829870704" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerus%20sub-penthouse.png?VersionId=Uktd61kpLSqNjwJeDFs7IaZ3xgLlDQmu" />

Michael Wiener, Design Director at Mirvac, says The Aerus Sub-Penthouse embodies the apex of Mirvac’s design ethos.

“Moving through your home is like walking on air - a private sanctuary where the craftsmanship is refined, the proportions generous, and the flow so effortless, you feel completely at ease in the sky,” Wiener says.

“In Aerus, we wanted to create a sense of weightlessness - a home that feels suspended in the skyline, full of light, grounded in luxury.”

[smartcode_project:default project_id=114216 project_image_fid=3777]

The Aerus Sub-Penthouses are expected to attract a mix of local and international buyers seeking a long-term residence of scale and quality in a riverfront setting, from returning expats to established families and business owners who value privacy, craftsmanship, and convenience within walking distance of the CBD.

With an unmatched suite of amenities, Trielle is the most extensively appointed development Mirvac has created to date at Yarra’s Edge. Within the tower will be The Oasis, a 900 sqm podium rooftop wellness retreat designed in collaboration with spa expert Naomi Gregory. Located seven storeys above the Yarra River promenade, it features a 25-metre lap pool, spa and sauna, hot magnesium spa, biophilic gym, yoga and Pilates studio, cold-pail contrast treatment, and day spa treatment rooms. Further amenities include a piano lounge, bookable dining room, cinema room, golf simulator studio, games room, teppanyaki bar, dog wash bay, and two flexible work hubs, The Biblioteca library and Mills Place office space, catering to residents’ evolving lifestyle needs.

Construction of the $350 million tower is underway through Mirvac’s in-house construction arm, with completion anticipated for mid-2027.

[smartcode_project_cta:default project_id=114216]

Sky-high sanctuaries: Mirvac unveils The Aerus sub-penthouses at Trielle

<a href="https://www.apartments.com.au/developers/jwland-development">JWLand</a>’s De Burgh, the final residential release within the Northbourne Village precinct in Lyneham, is nearing completion just as the Federal Government’s Home Guarantee Scheme prepares for its most significant expansion to date.&nbsp;

From October 2025, the scheme will allow first home buyers to enter the market with just a five per cent deposit and no lenders mortgage insurance (LMI), removing some of the most common barriers to ownership.

With <a href="https://www.apartments.com.au/new-apartments/de-burgh-at-northbourne-village-40-de-burgh-street-lyneham-act-2602">De Burgh</a> on track for residents to move in by late spring 2025, the timing creates a strong opportunity for first home buyers seeking brand-new apartments in Canberra’s sought-after Inner North.&nbsp;

[smartcode_project:default project_id=139989 project_image_fid=212888]

The project delivers 350 residences across two buildings, with layouts ranging from compact studios through to one, two, and three-bedroom apartments.

JWLand has tailored the development for long-term liveability, integrating natural light, privacy and outdoor space into each home. Ground-floor residences feature private courtyards, while upper levels benefit from generous balconies.

Kitchens are fitted with Fisher &amp; Paykel appliances, and all apartments include ducted reverse-cycle air conditioning with smartphone app control for lighting and climate.&nbsp;

Shared resident facilities include a rooftop garden, gym, lounge and parcel lockers, alongside landscaped green space within the precinct.

[smartcode_project:default project_id=139989 project_image_fid=267376]

For buyers, the expanded Home Guarantee Scheme removes income caps and introduces unlimited places, making it more accessible than ever. With most De Burgh apartments priced under $1 million, they fall well within the updated eligibility thresholds.

The policy changes provide first home buyers with greater certainty and a smoother path to finance. Combined with the quality and location of De Burgh, the expanded scheme is expected to draw a new wave of buyers to Canberra’s Inner North.

Residents will benefit from the project’s central setting, just 600 metres from the light rail and three kilometres from Canberra’s CBD. The precinct is bordered by the <a href="https://www.apartments.com.au/developments/lyneham-act-2602">Lyneham</a> wetlands and sits within easy reach of cafes, restaurants, schools and the ANU.

With completion scheduled for late 2025, De Burgh is set to be among the first major apartment projects to meet the expanded scheme head-on, offering first-time buyers a realistic pathway to ownership in one of Canberra’s most connected neighbourhoods.

[smartcode_project_cta:default project_id=139989]

JWLand’s De Burgh aligns with expanded Homebuyer Scheme, opening doors for first home buyers in Canberra’s Inner North

A subtropical pair of residential towers are in planning for a key South Brisbane site neighbouring the iconic Expo ’88 Skyneedle, with new documents revealing a vertically layered vision designed to respond to the precinct’s evolving high-density character.

The proposal has been lodged by&nbsp;Darveniza Group, which is also is behind the 400-apartment Station Quarter precinct in Alderley.

Darveniza Group, led by Jane Darveniza, the Brisbane-based investor and Queensland rich-lister and widow of the late property magnate Bojan Darveniza, is seeking approval for a mixed-use project encompassing 204 apartments, ground-level retail, food and drink tenancies, and office space across two architecturally integrated towers at 37–39 Manning Street.

Occupying an 1,822 sqm site, the proposed towers would rise above a sculptural podium base, with a recessed landscaped centre, rooftop communal areas, and a total of 220 car parks and 256 bicycle bays. The apartment mix spans one- to five-bedroom dwellings, with a design emphasis on generous balconies, cross-ventilation, and climate-responsive materials.

<img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="42c1f501-2afd-440b-af49-67c257123ea7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20podium.png?VersionId=KFlksfWzmDRD.VIYxd_1q3VAel.nN3TH" />

“The development is conceived as two slender twin buildings that meet at a lushly landscaped central recess,” the Finegrain design report states. “The façade is highly articulated with the plan form stepping back and forth to reduce visual bulk and maximise internal occupants’ access to natural light and air”.

A hallmark of the proposal is its integration of greenery, both visually and functionally. Around 77 per cent of the site’s green plot ratio is delivered through vertical planting spines, a green podium wall, and rooftop amenity. Ground-level deep planting and landscaped communal zones aim to create a shaded, walkable interface along Manning Street.

“The stepped plan form introduces variation in balcony setbacks and enclosed apartment areas, enriching both the façade expression and the resident experience,” the design team notes. “At ground and podium levels, this stepping also enhances permeability, maximising pedestrian view lines to the neighbouring Skyneedle and reinforcing a strong sense of local identity”.

<img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="b3f26dfc-6b93-465c-9ffb-0a2530372a23" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20site.png?VersionId=JflvKdqDxcaHTFbb9HL5TwoiRgeQ2LqA" />

The site directly adjoins the heritage-listed Skyneedle at 35 Manning Street, an enduring legacy of World Expo ’88. The accompanying heritage impact report by Pendergast Architects contends that the proposal has been carefully conceived to protect the cultural significance and landmark visibility of the structure.

“The design provides setbacks, tower separation and podium articulation to maintain the visibility and landmark role of the adjoining Skyneedle,” the report states. “The significance of the Skyneedle lies principally in its landmark visibility and cultural symbolism, rather than in detailed fabric or architectural setting”.

The proposal sits within the Kurilpa Sustainable Growth Precinct, under Brisbane’s TLPI 02/2023, where revised planning controls support high-density, mixed-use development integrated with subtropical design and increased public realm contributions.

Finegrain’s design reflects this intent, drawing cues from the site's adjacency to Musgrave Park, the subtropical landscape of South Brisbane, and cultural landmarks such as QPAC and South Bank.

Twin green towers proposed for Manning Street, South Brisbane site beside Skyneedle

Matthew Hassan

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EXPERT OBSERVER 
Housing finance came in softer than expected in Feb, the total value of approvals recording a 1.7% decline in the month against expectations of a modest further rise.
The detail was soft across most segments and is despite both price gains and turnover still holding up reasonably well in the month which pre-dated any meaningful impacts from the Coronavirus outbreak.
The detail on owner occuper loans suggests slower volumes were the main driver of the soft result with the number of loans to this segment down 2% but the value down only 1.7%.
The number of approvals is still up 4.9% since the low point in May while the total value is up 22.6% (the difference implying a large rise in average loan sizes consistent with both rising prices and the stronger rebound in activity in higher priced markets such as Sydney and Melbourne).
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%201.png" target="_blank">Click here </a>to enlarge: 
<img src="https://www.urban.com.au/images/2020/4/14/housing%20finance%201.png" alt="">
Investor activity continues to be more subdued. The value of investor loans saw a slightly bigger decline in the months, down 1.9% with the value of approval up 6.3%yr compared to double digit growth for owner occupier loans.
Construction-related loans bucked the wider monthly decline, posting a 1.9% rise, likely supported at the margin but post-bushfire rebuilding activity.
Loans for the purchase of newly built dwellings fell sharply, down 8.9%mth, but were coming off very strong gains over the previous three months and are still up 29%yr (the ABS has identified some data quality concerns with this measure that are likely to see revisions in future relases).
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%202.jpg" target="_blank">Click here</a> to enlarge: 
<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/2020/4/14/housing%20finance%202.jpg" alt="">
On a combined basis, the total value of loans was up 1.7%mth and 13.1%yr.
By state, weakness was concentrated in NSW (total value of loans –7.1%mth), SA (–7.2%mth) and, to a lesser extent, Vic (–2.1%mth).
Other states recorded gains, Qld +4.1%mth and WA+5.5%mth.
Overall, while the starting point is a touch softer than expected the main story is still the likely severe decline as coronavirus effects impact in coming months.
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%203.jpg" target="_blank">Click here</a> to enlarge:
<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/2020/4/14/housing%20finance%203.jpg" alt="">
Auction markets have already registered an abrupt slowdown as physical auctions have been banned outright (around half of auctions have been withdrawn prior, the remaining sales going via pre auction sales or online auction).
 
This segment only account for about 15% of all property sales, and the industry may do more to adapt to the situation in coming months.
Nevertheless, health concerns, social distancing restrictions and a deep economic shock will heavily impact the wider property market in coming months.
<div>
MATTHEW HASSAN is a Senior Economist for Westpac
 
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Matthew_Hassan-HHWHptmrw4

Housing finance slips ahead of shutdown: Westpac's Matthew Hassan

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EXPERT OBSERVATION 
Dwelling approvals were much weaker than expected in Oct, recording an 8.1% pull back from September's 7.2% gain.
The Consensus had been looking for a milder 1% fall. The fall takes total monthly approvals back near their July cycle low, down 23.6%yr.
The detail was particularly disappointing – rather than a high-rise driven result, weakness in the month was more evenly spread across all dwelling types, detached houses down 11%, mid-low rise unit approvals down an estimated 4.7% and high rise approvals down an estimated 14%.
The renewed weakness in non high rise segments is despite tentative signs of stabilisation in recent months and firmer reads on construction-related finance approvals. These segments are also expected to be more responsive to recent interest rate cuts and the pick up in house prices.
The state detail showed weakness was concentrated in NSW and Qld with other states posting solid gains.
NSW was particularly weak with total dwelling approvals down 16%mth to a 7yr low. Qld approvals fell 10% in the month but look to be chopping around a steadier underlying trend. Vic posted a 5.7% rise but also looks to be stable in trend terms. WA approvals rose 11.5%, off a very weak Sep, and SA rose 14.7% with an uptrend in place.
The total value of renovation approvals declined 2.6%, mostly reversing a 3% gain in Sep month, and still tracking a slight trend decline.
The total value of non res building approvals rose 4.2% but was coming off a very choppy Aug-Sep. Approvals are up strongly on a 3mth basis but tracking about flat in monthly trend terms.
Overall the Oct dwelling approvals report highlights the weak outlook for new dwelling construction. High rise segments look susceptible to further declines and non high rise is still softening despite rate cuts and the improved tone to markets since mid year.
Falling dwelling investment is set to be a continued drag through 2020 – we expect new dwelling investment to be down 11.5% for the full calendar year 2019 and is forecast to fall a further 8% in 2020.
The weakness stands in stark contrast to the rebound coming through in prices (see <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/41356">here</a> for more detail on the latest price data) but reflects the long lags on high rise projects and the specific issues facing this particular segment that are likely to preclude a rebound in high rise activity. Price gains are also expected to moderate as we head into 2020 as supply starts to lift and as affordability strains re-emerge. 
Read full report: <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/December/er20191202BullDwellApprovOct.pdf" target="_blank">'Australian dwelling approvals October' (PDF 319kb)</a>
Matthew Hassan is a Senior Economist at Westpac.
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Australian dwelling approvals weaken: Matthew Hassan

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EXPERT OBSERVATION
After a material 10.7% correction over the previous two years, Australian dwelling prices have posted a clear recovery since mid-2019, the pace accelerating month to month.
The CoreLogic home value index, covering the eight major capital cities rose 2% in Nov following a 1.4% gain in Oct, a 1.1% gain in Sep and a 1% gain in Aug.
Annual price growth ticked up to 0.4%yr, the first positive annual pace since March 2018. Prices are still 5.1% below their Sep 2017 peak but could surpass that level in early 2020 if the rebound continues at its current pace.
Several factors have contributed to the turnaround including: reduced uncertainty around housing-related tax policy following the Federal election in May; 75bps in rate cuts from the RBA; and some easing in regulatory guidelines for loan serviceability assessments. 
<a href="https://www.propertyobserver.com.au/images/2019/12/2/westpac%201.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/12/2/westpac%201.jpg" alt="">
All major capital cities recorded gains in Nov, as did most smaller capitals and non-capital city areas within states. Only Darwin, and regional areas in WA and NT recorded declines in Nov. In annual growth terms, Sydney and Melbourne are both seeing positive gains, but prices in other major capital cities and are still down on a year ago. 
Sydney recorded a thumping 2.7% gain in Nov, the strongest monthly rise since Oct 1988. Prices are up 1.6%yr but still 9.4% below their peak in mid-2017. Houses and top and middle tier properties are now outpacing other segments.
Melbourne recorded a 2.2% rise following a 2.3% gain in Oct that was the strongest since 2009. Having come through a milder price correction, the gains mean Melbourne prices are now only 3.7% below their late 2017 peak. As with Sydney, houses and top tier properties are leading the gains. 
<a href="https://www.propertyobserver.com.au/images/2019/12/2/westpac%202.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/12/2/westpac%202.jpg" alt="">
Brisbane dwelling prices posted a solid 0.8% rise for the second month in a row – the best back to back gains the market has seen in a while but with prices still down slightly by 0.5% on a year ago. Houses and 'top tier' property are showing a more meaningful lift. 
Perth dwelling prices posted a 0.4% gain, the first positive month since Apr 2018. The gain was driven by a 0.9% rise in 'top tier' properties, other segments flat or down slightly. Prices overall are still down 7.7%yr. 
Across the other capital city markets: Adelaide dwelling prices rose 0.5% but still down 0.5%yr; Canberra rose 1.6%mth, 3%yr; Hobart rose 2.3%mth, 4.2%yr; and Darwin fell 1.2%mth to be down –10.9%yr.
<a href="https://www.propertyobserver.com.au/images/2019/12/2/westpac%203.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/12/2/westpac%203.jpg" alt="">
The recovery that began mid-year has now gained significant momentum and is starting to broaden.
It remains a 'thin' market sales-wise but buyer sentiment points to a further lift in demand in early 2020.
Price gains are expected to moderate as supply starts to lift and as affordability strains re-emerge.
See our latest <a href="https://westpaciq.westpac.com.au/Article/41257/180/" target="_blank">Westpac Housing Pulse</a> report for a more detailed run down on the situation and outlook.
Read the full report: <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/December/er20191202BullDwellPricesNov.pdf" target="_blank">'Australian dwelling prices November'</a>.
Matthew Hassan is a Senior Economist at Westpac.
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Australian dwelling prices rebound: Matthew Hassan

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EXPERT OBSERVATION
The May retail update showed sales edging up 0.1% in the month but essentially flat over the April-May period.
This was a touch below the consensus forecast of a 0.2% gain but in line with Westpac's view.
Annual growth slowed to 2.4% over the year, the slowest pace since the start of 2018 and well below the long run average of 4% over the year.
As noted last month, the timing of public holidays may have affected sales over April-May period.
Aside from that our main area of interest is around the sub-category and state detail and the extent to which these show wealth effect drags from the Sydney and Melbourne housing corrections.
The evidence this month is mixed: household goods and NSW remain notable weak spots for sales but the deterioration in these segments remains moderate and sales remain firm across other discretionary categories and in Vic, with a notable firming in the resource states.
<a href="https://www.propertyobserver.com.au/images/2019/7/4/retail%201.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/7/4/retail%201.jpg" alt="">
By category, the main source of weakness in May was basic food retail (–0.3% in the month). This category accounts for 40% of total retail.
Food price moves have been a significant driver of fluctuations – the latest dip may be a sign that these are easing. Sales ex basic food rose 0.4%mth.
Across the other categories, household goods recorded a 0.4% fall in the month following a 0.9% decline in April with weakness pronounced in the housing-related 'furniture &amp; floor coverings' sub-category (worth about 25% of the wider category).
That suggests wealth effects are dragging on 'big ticket' discretionary spending (a view supported by recent weakness in vehicle sales).
<a href="https://www.propertyobserver.com.au/images/2019/7/4/retail%202.png" target="_blank">Click here </a>to enlarge:
<img src="https://www.urban.com.au/images/2019/7/4/retail%202.png" alt="">
 
However, the picture is more mixed across 'small ticket' discretionary categories, sales slipping for clothing (–0.2%mth) and department stores (–0.4%mth) but rising for cafes &amp; restaurants (+0.7%mth) and 'other retail' (+0.6%mth).
The state patterns were also mixed. Sales continue to slow abruptly in NSW, down 0.1% in the month but with annual growth down to a very weak 0.5% over the year.
Vic is holding up much better with a 0.6% gain in the month and annual growth above 4% over the year. The two 'mining states' recorded dips in May but continue to see annual growth lift, running at a surprisingly strong 4.7%yr pace in the case of Qld.
<a href="https://www.propertyobserver.com.au/images/2019/7/4/retail%203.jpg" target="_blank">Click here </a>to enlarge:
<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/2019/7/4/retail%203.jpg" alt="">
Looking by channel, online sales continue to moderate from the big surge in 2018, annual growth slipping below that via 'traditional' channels for the first time since the ABS started collecting monthly online sales data in 2013.
The breakdown by retailer size shows small retailers bearing the brunt of the 2019 slowdown. That said, while sales growth has held up better for larger retailers (running at 4% over the year) it is low by historical standards.
Overall the May update is bleak but not bleaker than expected. Retail sales are treading water in nominal terms rather than contracting.
<a href="https://www.propertyobserver.com.au/images/2019/7/4/retail%204.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/4/retail%204.jpg" alt="">
 
As such the wash up for the June quarter volumes that feed into national accounts estimates of consumer spending will depend heavily on what has been happening on the price side. We suspect retail price inflation has slowed significantly from the food price driven gains over the last two quarters.
The June quarter CPI update due at the end of the month will be an important pointer on this question and the extent to which growth in consumer demand is slowing.
MATTHEW HASSAN is a Senior Economist for Westpac.
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Australian retail sales tread water: Westpac's Matthew Hassan

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EXPERT OBSERVER
The correction in Australian dwelling prices that has been running since late 2017 may have ended. 
The CoreLogic home value index, covering the eight major capital cities, dipped 0.1% in June to be down 8.0% over the year – still weak but marking the first month to month improvement in the annual growth rate since its peak at +11.3%yr in mid 2017.
<a href="https://www.propertyobserver.com.au/images/2019/7/1/westpac%201%20.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/1/westpac%201%20.jpg" alt="">
Sydney and Melbourne both recorded their first monthly price gains since the correction began in 2017. However, prices continued to slip elsewhere with most other capital cities showing a deterioration over the last three months.
Melbourne dwelling prices rose 0.2% in June, paring the annual pace of decline back to 9.2% over the year. Units are leading the turnaround, prices in this segment up 0.7% over the last two months. Prices in the top 25% of properties by value also outperformed slightly, albeit coming off more material declines through the correction.
Sydney dwellings recorded a 0.1% price gain in June, the annual pace of decline slowing to 9.9% over the year. The gain here centred on the middle and top tiers of the market which have moved through a more material correction over the last two years. Units slightly outperformed.
<a href="https://www.propertyobserver.com.au/images/2019/7/1/westpac%202.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/7/1/westpac%202.jpg" alt="">
Other major markets were considerably weaker in the month, Brisbane, Perth and Adelaide all recording monthly price declines and accelerating annual rates of contraction. 
Perth's long-running correction is showing few signs of reprieve, prices down 0.6% in the month,  and 9.1% over the year. 
Brisbane, which was stable through 2018, has continued to see modest but worsening price slippage in 2019, prices down 0.6% in the month, and 2.6% over the year. 
 Adelaide has also slipped into a slight correction, prices down 0.5% in the month, and 0.3% over the year.
Conditions were mostly soft cross the smaller markets as well: Canberra down 0.9% in the month, lowering annual growth to just 1.4% over the year; Darwin down 0.9% in the month, the long-running correction re-accelerating to 9.6% over the year (a similar theme to Perth); but Hobart recording a 0.2% gain in the month holding annual growth in positive at 2.9% over the year. 
Overall, the weakness still evident in other markets takes some of the gloss off the clear improvement showing through in Sydney-Melbourne.
<a href="https://www.propertyobserver.com.au/images/2019/7/1/westpac%203.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/7/1/westpac%203.jpg" alt="">
 
It also cautions against putting too much emphasis on the improving tone from weekly auction results which are not representative of conditions outside of these two markets.
The contrasting performance of the major cities may be an indication that swings in investor demand around the Federal election have been key – this segment tends to be more active in Sydney and Melbourne – and that other factors such as those around affordability, credit availability and borrowing capacity may still be weighing on owner occupier demand.
The finance approval data should shed some light on this in coming weeks.
The mix should become more balanced over the the second half of 2020 lower interest rates and a likely relaxation in regulatory guidelines for loan assessments comes through.
For the record, Westpac expects dwelling prices to remain patchy in 2019, with a stabilisation showing through more clearly in 2020.
Any rebound in prices before then is likely to quickly run into affordability constraints.
<a href="https://www.propertyobserver.com.au/images/2019/7/1/dwelling%20price%201.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/1/dwelling%20price%201.jpg" alt="">
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<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/2019/7/1/dwelling%20price%207.jpg" alt="">
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<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/2019/7/1/dwelling%20price%208.jpg" alt="">
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<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/2019/7/1/property%20value%205.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/1/property%20value%206.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/1/property%20value%206.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/2/auction%201.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/2/auction%201.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/7/2/real%20price.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/7/2/real%20price.jpg" alt="">
 
MATTHEW HASSAN is a Senior Economist for Westpac
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Is the dwelling price correction over? Matthew Hassan

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The minutes of the June RBA Board meeting show the decision to cut the cash rate by 25bp at that meeting was driven by a revised assessment of spare capacity in the labour market and that the Board expects to ease policy further.
We continue to expect a further 25bp rate cut in August and a final 25bp cut in November.
Note that much of the information from the minutes is not new. Key aspects have already been covered in a speech by the RBA Governor on the day of the decision and in other commentary from the Bank since then.
Assessments have also likely evolved since June 4, particularly following the March quarter national accounts released a day later.
As such, our main interest in reading the meeting minutes is around the commentary from members and the tone of the discussion – particularly the degree of urgency around policy easing.
The minutes are clear on the prospect of further cuts, noting in the concluding paragraph that “… it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead”.
In the lexicon of RBA statements, “period ahead” signals that policy is ‘live’ in coming meetings but stops short of indicating an imminent move at the next meeting.
The case for easing in June rested firmly on a reassessment of the labour market.
Updates on wage costs, showing growth of 0.5%qtr, 2.3%yr to March, were seen as “further evidence of spare capacity”.
The latest data around jobs and unemployment is assessed as “mixed” – with an increase in unemployment and underemployment and a moderation in employment growth noted, albeit with the latter still running above growth in the labour force and participation rates reaching a record high.
The contrast with the “strong” description in the May minutes is striking.
However, the real change was around the assessment of the extent of spare capacity – i.e. the degree to which unemployment was above the ‘full employment’ levels associated with stable inflation.
As outlined by the Governor, the Bank now sees this as around 4.5% compared to the 4.75-5% cited previously – the shift reflecting the unfolding mix of wage and unemployment outcomes.
The current 5.2% unemployment rate is a sizeable 0.7ppts above this target level. While noting estimates are uncertain, Board members concurred with the change in assessment.
Other factors behind the decision to cut seem less urgent. The outlook for both the global economy and the Australian economy was assessed as “reasonable” albeit with the latter conditioned on market pricing for the cash rate that implied interest rates would be lower in the period ahead.
Around inflation, the persistence of low underlying inflation – below the 2-3% target range for three years and expected to remain low near term – looks to have been a secondary consideration behind the cut, giving scope for the move rather than driving the decision.
That said, there did seem to be some concern that this might start to undermine medium term inflation expectations.
The risks a rate cut would present around high household debt and housing markets were assessed as low.
Members judged it “was unlikely to encourage a material pick-up in borrowing by households that would add to medium term risks”.
Interestingly, members also noted that lower rates would “stimulate activity and thereby improve the resilience of the Australian economy to any future adverse shocks” – perhaps an indication that the Board is a little keener to get the economy moving.
Conclusion
Overall, the minutes confirm more easing is on the way. Board members appear very much aligned to the Governor’s views, particularly around the labour market.
That said, the ‘tone’ is not urgent in the sense that growth outlook still does not seem to be viewed as that challenging and low inflation is not a driving force behind the easing.
We continue to see the next 25bp rate cut coming in August and a final 25bp cut in November.
There are complications. After shifting its view on full employment and having identified more significant spare capacity in the labour market, the Board may see little point in delaying follow-on easing moves – the case having already been made.
However, we expect the next move to instead be framed by a downgrade to the Bank’s forecasts meaning it will be more inclined to move in August when the full set of revised forecasts are released in its Statement on Monetary Policy.
We expect this to include a downward revision to the Bank’s near term growth forecast from ‘around 2.75%’ to something more materially below trend. The disappointing March quarter national accounts release has already lowered the starting point.
Updates on the consumer are likely to show soft conditions extending into the June quarter. Meanwhile weak labour market updates are likely to take the unemployment further away from the Bank’s 4.5% target.
Given the need to adjust, it is much simpler communication-wise, to cut rates at the time the forecast is changed than to cut in July and announce the lower forecast a month later.
MATTHEW HASSAN is a Senior Economist for Westpac
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RBA June minutes allay fear that low rate borrowing has medium term risks: Westpac's Matthew Hassan

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The April retail update came in weaker than expected, sales dipping 0.1% in the month compared to consensus forecasts of a 0.2% gain.
Annual growth slowed to 2.8% per year, the slowest pace since mid 2018.
The timing of public holidays may have been a factor in April, with Easter falling in the month this year and the ANZAC day public holiday a week later encouraging many to take leave.
While the ABS tries to adjust for these shifting seasonal effects, there may have been more of a dampening effect compared to previous years.
<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/2019/6/4/retail%201.jpg" alt="">
That said, both the sub-category and state detail in April point to wealth effect spillovers from the Sydney and Melbourne led housing market corrections weighing on sales.
In particular, household goods retail sales – a bellwether for discretionary 'durables' spending – fell 0.9% in the month and NSW and Vic both recorded more pronounced 0.4% declines.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%202.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/6/4/retail%202.jpg" alt="">
The remaining sub-category detail shows a 0.2% gain in the large basic food retail category and more mixed results elsewhere – clothing down 1.2% month and cafes &amp; restaurants down 0.7% month but both coming off sold gains in March; and department stores up 1.8% month and 'other retailing' up 0.8% month but both coming off declines last month.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%203.jpg" target="_blank">Click here</a> to enlarge:  <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/2019/6/4/retail%203.jpg" alt="">
Needless to say it pays to look through the monthly volatility.
Looking at sales across the major states: NSW –0.4%mth, +1.2%yr; Vic –0.4%mth, +3.7%yr; Qld +0.7%mth, +6.0%yr; SA +0.6%mth, +0.5%yr; and WA +0.1%mth, +2.6%yr.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%204.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/6/4/retail%204.jpg" alt="">
Looking by channel, online sales look to have posted a reasonably solid 1.1% gain in the April month, although the annual pace of growth in this segment continues to slow. 
The breakdown by retailer size shows weakness concentrated amongst small retailers, sales in the segment down 0.9%mth. Large non-food retailers saw a flat result while large food retailers recorded a 0.6% gain.
Overall the April retail update is clearly on the soft side, marking a weak start to the June quarter and with some worrying signs that wealth effect drags may be intensifying.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%205.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/6/4/retail%205.jpg" alt="">
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<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/2019/6/4/retail%207.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%208.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/6/4/retail%208.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%209.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/6/4/retail%209.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/6/4/retail%2010.jpg" target="_blank">Click here </a>to enlarge: 
<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/2019/6/4/retail%2010.jpg" alt="">
MATTHEW HASSAN is a Senior Economist for Westpac
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Australian retail sales soften again: Westpac's Matthew Hassan

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EXPERT OBSERVER
Australia’s housing market has continued to weaken. Conditions still vary widely across cities but are soft overall, with price corrections underway in the previously strong Sydney and Melbourne markets and Perth's longer running period of price declines also continuing.
The three months to August have seen the Westpac Housing Consumer Sentiment Index (a composite measure based on four housing–related components of the Westpac Consumer Sentiment survey) soften a touch but remain consistent with stabilising demand. The main driver of the lift continues to be less downbeat reads on ‘time to buy’, partly reflecting an improvement in affordability. Small positives around jobs and risk aversion have been offset by weakening price expectations.
Turnover remains very low. Whereas earlier estimates had suggested activity might have been stabilising in the first half of 2018, revised and updated data now show turnover nationally down 6.2% over the year to July. The annual pace of decline has moderated and the most recent monthly figures hint at stabilisation but, without a revival, annual growth is likely to stay negative through to year end.
The continued decline in turnover suggests other factors such as tightening loan criteria and falling investor activity are weighing on activity, essentially preventing what would likely have been a stabilisation in conditions by now.
 <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/2018/8/28/WESTPAC.jpg" alt="">
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<div>Matthew Hassan is a Senior Economist at Westpac.</div>
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Housing sentiment stable but markets still weakening: Matthew Hassan

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EXPERT OBSERVATION
Australia's housing market continues to correct. The CoreLogic home value index, covering the eight major capital cities, dipped 0.3% in June marking the ninth successive monthly decline. Prices nationally are down 1.6%yr and 2.2% from the peak in Sep last year.
The correction remains both relatively shallow and narrowly-based, concentrated in the previously strong Sydney and Melbourne markets. These two markets have now seen no net gain in prices since late 2016 and mid-2017 respectively. The Perth market is also seeing a price correction although this has been ongoing for the best part of five years.
For the June month, unit prices showed a slightly milder fall than houses (–0.2% vs –0.3%) although annual growth for units remains positive and is significantly outperforming price growth for houses (+0.4%yr vs –2.2%yr for houses).
Click here <a href="https://www.propertyobserver.com.au/images/2018/7/3/value-index.jpg" target="_blank">to enlarge.</a>
<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/2018/7/3/value-index.jpg" alt="">
Perth recorded the biggest price decline in the June month, down –0.5%mth, –2.1%yr with the city's unit market showing a renewed price contraction. Perth unit prices are back at their 2006 levels and have not kept pace with inflation since mid-2003.
Amongst the major eastern capitals, Melbourne was again a touch weaker, prices falling –0.4%mth vs –0.3%mth in Sydney, although prices are still up a touch (+1%mth) on a year ago compared to a 4.5% decline in Sydney. Brisbane and Adelaide continue to see a steadier performance with prices ticking up slightly in the month and up 1.1%yr. The detail suggests the Brisbane unit market is on a firmer footing.
Price performances continue to vary widely across the smaller capitals, Hobart's boom possibly cooling a touch but still showing double digit annual growth (+12.7%yr), Canberra subdued (+2.3%yr) and Darwin showing few signs of pulling out of its steep correction (–7.7%yr). Performances in regional areas have also varied but have been slightly better overall (Aus ex capital city prices flat in the month but up +2.2%yr).
All tiers recorded price slippage in the June month although declines remains larger for the 'top 25%' of properties by value down –0.5%mth, –3.8%yr compared to the 'middle 50% down –0.2%mth, +0.8%yr and the 'bottom 25%' down –0.1%mth, +1.3%yr.
Auction clearance rates weakened notably through May-June, suggesting an additional drag from tightening loan criteria and longer approval processing times. Buyer sentiment has lifted off last year's lows but the change in credit conditions looks to have overshadowed any positives from the marginal improvement in affordability. Any stabilisation still looks to be a long way off.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Correction continues in Australian dwelling prices: Matthew Hassan

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EXPERT OBSERVATION
Australian housing finance approvals were a touch firmer than expected in April, the number of owner occupier loans down just 1.4% vs expectations of a slightly larger 1.8% decline.
The value of investor loans recorded a 0.9% dip, much milder than March's 9% drop. Despite this, conditions were soft across most of the detail.
The number of new owner occupier approvals, i.e. excluding refinancing, was more in line with consensus, with a 1.9% decline in April taking approvals down 4.4%yr.
The total value of housing finance approvals, including investors but including owner occupier refi, dipped 0.4%mth to be down 5.8%yr (estimates excluding investor refi look to be down about 6.7%yr). Stepping back, the peak to trough move in the value of new finance approvals looks to be a fall of about 10%, roughly on a par with the 2015-16 pull back.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/13/finance%20approvals.jpg" target="_blank">to enlarge.</a>
<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/2018/6/13/finance%20approvals.jpg" alt="">
The number of owner occupier construction approvals dipped 0.2% to be down 5.7%yr. The number of owner occupier approvals for the purchase of newly built dwellings fell 3.7%mth but is still up 2.9%yr. On a combined basis, construction-related approvals were down 1.4%mth, –2.9%yr.
The number of approvals to first home buyers (FHBs) continues to ease back from recent highs, declining 1.6%mth. Although approvals are still up 24%yr, they are now 10% off their Nov peak. Activity in this segment has been boosted by increased assistance from state governments in NSW and Vic – measures that in the past have typically generated a significant pull forward in activity that subsequently falls away.
The state breakdown had more detail than usual this month due to the timing of the release which coincided with the release of state lending data for investor loans. The combined figures shows the biggest annual declines in the total value of approvals (incl. investor loans but excl. owner occupier refi) have been in WA (–8.8%yr), NSW (–6%yr) and Qld (–6%yr) with a milder 2.9%yr fall in SA. Vic has seen a slight gain (+1.9%yr) while Tasmania has bucked the national trend with a strong surge (+15.4%yr).
More recent data, from auction markets in particular, suggest housing market conditions have seen a further weakening since April likely reflecting tighter lending criteria. With more stringent assessments also likely to delay loan processing, finance approvals could see a more significant decline in the next few months.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Matthew Hassan

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