<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Money Lending

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EXPERT OBSERVER
Is Perth about to boom?
The NAB survey today certainly suggests so.
<div id="post-body-5780827678701089214" class="post-body entry-content">
<div>In Q3 Business Conditions for Western Australia practically exploded higher from a reading of 2 to 25, while business confidence went from a negative reading of -1 all the way up to 10 across a single quarter of trading. </div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-sopqcq0XBLA/X3sNbSaoZDI/AAAAAAAA4qM/50kqimyXn8cO78694yN01OsiE3dt-7VngCNcBGAsYHQ/s740/NAB.jpg" target="_blank">Click to enlarge:</a></div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-sopqcq0XBLA/X3sNbSaoZDI/AAAAAAAA4qM/50kqimyXn8cO78694yN01OsiE3dt-7VngCNcBGAsYHQ/s740/NAB.jpg"><img src="https://1.bp.blogspot.com/-sopqcq0XBLA/X3sNbSaoZDI/AAAAAAAA4qM/50kqimyXn8cO78694yN01OsiE3dt-7VngCNcBGAsYHQ/w640-h606/NAB.jpg" width="640" height="606" data-original-height="700" data-original-width="740"></a></div>
 <div>Source: NAB</div>
<div> </div>
<div>Having barely been touched by COVID-10 since April, the local jobs market is clearly enjoying the stimulus, and jobs vacancies for Western Australia are suddenly at the highest level since the resources boom years. </div>
<div> </div>
<div>Is Perth property about to boom, then?</div>
</div>
PETE WARGENT is the co-founder of AllenWargent property buyers and a best-selling author and blogger 
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pwargent-M4siyDbqQY

Perth property looks set to boom: Pete Wargent

<html><body>
EXPERT OBSERVER
A significant day for bank stocks as it was announced that the responsible lending laws that have been in place since 2009 will likely be wound back.
All of the major lenders saw a significant jump in their stock prices.
<img src="https://1.bp.blogspot.com/-rTwQDOHXWzI/X22oV2eALlI/AAAAAAAA4dc/iJYtUBHI0YoyTZiy7GeAMEiY0hqf6P3FgCNcBGAsYHQ/s815/WBC.jpg">
This will no doubt act to speed up the pace of loan approvals and bank lending, albeit probably not for 6-12 months, with less of the forensic poring over household expenditure for mortgage applications, which has at times made the lending process more akin to an audit than a credit approval.
Most likely there will be an easing of some of the existing HEM restrictions as the legislation is passed, and less scrutiny of household expenditure line items.
The responsibility will more so fall back on to borrowers to declare complete and accurate information, instead of looking for lenders or brokers to blame wherever a loan goes bad.
This may also increase the availability and capacity for some individuals to borrow, though it remains to be seen how much.
Offsetting this to some extent will be the introduction of the best interests duty for brokers, effective 1 January 2021.
The Reserve Bank had previously noted that lending had become excessively risk averse, and this move will slash approval times assuming it is legislated on a timely basis.
Symbolic shift
Moreover, the announced planned changes are symbolic, suggesting that the credit pendulum is now likely set to swing back in the other direction, after half a decade of tightening which reduced the total borrowing capacity of some borrowers by half.
The announcement will also foster more competition between banks, with one large lender immediately offering lower variable rates, including on investment loans.
There are still significant headwinds for the economy to be navigated, of course, but the combination of record low mortgage rates and the signaling of a simplified approval process should bring the housing market back to life in 2021.
PETE WARGENT is the co-founder of AllenWargent property buyers and a best-selling author and blogger 
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Responsible lending laws to be wound back: Pete Wargent

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The level of bank discounting to borrowers will be closely scrutinised by the Australian Prudential Regulation Authority given the regulators' heightened focus on responsible lending, Deloitte partner Kevin Nixon has warned.
"If you are offering big discounts, you can expect APRA to ask why, particularly if it looks like the main goal is to increase volumes ahead of quarterly announcements. Further, under the broader culture remit there will be a focus on transparency and fairness in pricing," Mr Nixon told Fairfax Media.
Banks will continue to offer owner occupiers steep discounts on standard variable rates to protect their market share as investor lending is tightened, Deloitte's annual Australian mortgage report has suggested.
Major banks had been offering owner occupiers discounts on the standard variable rate of up to 130 basis points. 
Discounts are currently tracking at 100 basis points, it noted, where loans are for 80 per cent or less of the value of the property.
New owner occupiers or those refinancing loans should be able to access financing at around 4 per cent.
A survey of mortgage experts expect discounting for owner occupiers to continue, but perhaps at a reduced rate of between 80 and 120 basis points this year. 
Leaning towards 80 basis points, said AFG executive director Malcolm Watkins.
But for investors, loan discounts have tightened.
Deloitte said the ongoing discounts on banks' "front book" (new loans) are putting pressure on net interest margins, which is increasing the pressure to increase standard variable rates on the "back book" (existing loans).
Deloitte's report was based the report on a survey with 10 leaders of the mortgage industry.
The participants in the survey were: banks Commonwealth Bank of Australia, National Australia Bank, Bank of Queensland and Suncorp; non-bank lenders Pepper Group and Homeloans; mortgage brokers AFG and eChoice; and consultants CoreLogic and Steve Weston.
Half of the survey participants said they expect settlement volumes to fall this year compared to 2016.
But six out of 10 respondents say house prices will continue to grow, albeit at a lower level than 2015 to 2016. 
Two participants in the survey said house price growth could be higher than 2016 levels; while two said it would be flat - but no-one is forecasting that house prices in Sydney or Melbourne would fall, or that there would be a significant downturn across the country.
Meg Bonighton, general manager of home lending at NAB, said tighter lending standards and the macroprudential investor loan growth caps will see demand from investors and overseas borrowers "continuing to moderate" in 2017.
"In general, it will soften the impact on house price growth that we've seen over the past couple of years, while pockets of major cities are likely to continue with solid growth," she said.
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j.ballantyne1990-6AQqhLzZaK

Deloitte warns APRA is watching bank discounting

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Australia's home loans industry has improved its performance over the past year, adopting better 'responsible lending' practices, an ASIC review has found, though there is still  room for improvement. 　
ASIC has released its report (<a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-493-review-of-interest-only-home-loans-mortgage-brokers-inquiries-into-consumers-requirements-and-objectives/" target="_blank" title="REP 493 Review of interest-only home loans: Mortgage brokers’ inquiries into consumers’ requirements and objectives">REP 493</a>) 'Review of interest-only home loans: Mortgage brokers’ inquiries into consumers’ requirements and objectives' on the responsible lending practices of 11 large mortgage brokers with a particular focus on how they inquire into and record consumers' requirements and objectives.
It also examined how the changes implemented by lenders in response to the findings from ASIC’s report into interest-only home loans from 12 months ago last year (refer: <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-445-review-of-interest-only-home-loans/" target="_blank" title="REP 445 Review of interest-only home loans">Report 445</a>) have flowed through to mortgage brokers.　
Since the release of Report 445 in August 2015,  　
<ul>
<li>the percentage of new home loans approved by lenders which are interest-only has decreased by 12 percent; and　</li>
<li>the amount that can be borrowed by an individual consumer through an interest-only home loan has decreased, as lenders have adjusted their assessment of consumers' ability to repay, in line with ASIC's recommendation in Report 445. 　</li>
</ul>
Information provided by the mortgage brokers showed that for the six months from July 2015 to December 2015,    　
<ul>
<li>the number of new interest-only home loans fell by 16.3 percent, with total value of these loans reducing by 15.6 percent; and　</li>
<li>the percentage of interest-only loans with a term greater than five years reduced by more than half, from 11.2 percent to 5.1 percent.　</li>
</ul>
Almost 80 percent of applications reviewed included a statement summarising how the interest-only feature specifically met the consumer's requirements and objectives. This compared favourably with Report 445's finding that more than 30 percentof applications reviewed showed no evidence the lender had considered whether the interest-only loan met the consumer's requirements.　
'It is vital that mortgage brokers understand consumers' requirements and objectives to ensure they are not placed in unsuitable credit contracts,' said ASIC deputy chairman Peter Kell.
'ASIC is pleased that our concerns about interest-only loans and responsible lending are being acted on by the home lending industry, but there is still room for improvement.' 　
ASIC identified practices that place brokers at increased risk of non-compliance with their responsible lending obligations, and identified opportunities for brokers to improve their practices. Key compliance risks identified included:  　
<ul>
<li>Policies and procedures—Mortgage broker policies and procedures provided only general information, rather than tailored information on specific products and loan features that may impose increased financial obligations or restrict repayment flexibility (such as interest-only home loans); 　</li>
<li>Recording of inquiries—Record keeping was inconsistent and in some cases records were fragmented and incomplete; 　</li>
<li>Explaining the loan choice—More than 20 percent of applications reviewed did not include a statement explaining how the interest-only feature of the loan specifically met the consumer’s underlying requirements and objectives. The level of detail in these statements varied considerably and in some cases, where an interest-only loan was specifically sought by a consumer (including where this option was recommended by a third party, such as an accountant), the reason for this was not clear; 　</li>
<li>Consumer understanding of risks and costs—In some cases, where the potential benefit of the interest-only loan depended on the consumer taking specific action (for example, allocating additional funds to higher interest debt), it was unclear whether the consumer understood the potential risks/additional costs if the specific action was not taken. 　</li>
</ul>
The report details steps that mortgage brokers should take to improve their current practices, including: 　
<ul>
<li>Ensuring they understand the consumer's underlying objectives for requesting specific loan products and features;　</li>
<li>Recording concise summaries of consumers' requirements and objectives and the reason why a particular product, features and lender was chosen;　</li>
<li>Providing a statement summarising the broker's understanding of the consumer's requirements and objectives, which could also include the reason a particular loan is suggested, for the consumer to confirm before obtaining a loan.　</li>
<li>Where the potential benefits of a loan feature might require the consumer to undertake specific behaviour, ensuring consumers were aware of the action they needed to take to obtain the potential benefit, as well as the potential costs should this action not be taken.</li>
</ul>
<h2> </h2>
<h2 dir="LTR">Background　</h2>
The review of mortgage brokers' practices follows on from ASIC's previous work on interest-only loans, which reviewed how lenders were meeting their responsible lending obligations when providing interest-only home loans (Report 445) . 　
The National Consumer Credit Protection Act 2009 (National Credit Act) requires mortgage brokers to make reasonable inquiries about the consumer’s requirements and objectives in relation to the loan and make an assessment of the as to the suitability of the loan they assist the consumer  in obtaining. 　
Report 445 found that a greater proportion of interest-only home loans were arranged through the mortgage broker channel than direct channels (lenders). More than 50 percent of consumers use the services of mortgage brokers to assist in securing credit more generally.　
Mortgage brokers are well placed to assist consumers find products that meet their requirements. For these benefits to be realised, it is important that consumers have confidence in mortgage brokers, including their compliance with the National Credit Act.　
ASIC is currently undertaking a separate review at the request of the Government in relation to broker remuneration structures and their effect on consumer outcomes. That report will be provided to the Government by the end of 2016.
To download the report, <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-493-review-of-interest-only-home-loans-mortgage-brokers-inquiries-into-consumers-requirements-and-objectives/" target="_blank">click here</a>.
<h2> </h2>
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Property 101: ASIC reports on mortgage brokers' responsible lending practices in relation to interest only home loans

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GUEST OBSERVER
Agriculture in vogue: New commercial loans to the Agriculture sector hit 6-year highs in the year to January.
Lending: Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after falling by 5.2 percent in December. Total lending is down by 7.4 percent on a year ago – the biggest annual decline in 3ó years.
Trends: In trend terms lending was down 0.9 percent in January – the fourth consecutive fall. Lending was up just 2.1 percent on a year ago – the weakest growth in almost three years.
The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.
What does it all mean?
Aussie consumers and businesses remain cautious about taking on more debt. Interest rates may be at or near generational lows, but that is no guarantee of higher rates of borrowing. In fact, after running up over the past two years, new lending commitments seem to have hit a ceiling. Effectively borrowers are saying that’s enough for now. 
Leasing is in favour though as are loans taken out by consumers to buy new cars.
The interesting point for the Reserve Bank though is whether another cut in the cash rate would serve any purpose. Borrowers are cautious about taking on more debt. And lower interest rates compress bank margins, affecting profits and potentially investment, employment and shareholder returns.
Click to enlarge
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.58.38%20AM.png" alt="">
Mining has fallen from favour, to be replaced by agriculture sector. Loans to rural businesses over the past year were the highest in six years. The lift in lending coincides with renewed interest in the sector from overseas investors and expectations of stronger Asian demand for Aussie food and beverage products.
What do the figures show?
Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after a 5.2 percent fall in December. Lending had hit a 7ó year high in September. Total lending is down 7.4 percent on a year ago.
Housing finance: The seasonally adjusted measure of construction and new purchases fell by 4.3 per cent in January while alterations &amp; additions rose by 1.5 percent. Home loans are up 15.9 per cent on a year.
Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell by 2.5 per cent in January after falling by 8.8 percent in December. Revolving credit commitments fell by 2.2 per cent (-23.1 per cent in December). Fixed lending commitments fell by 2.5 per cent – the fourth straight decline. 
Business loans are down 16.3 per cent over the year.
Over the year to January, total business lending was $531.6 billion, up 7.4 per cent over the year. Lending rose most in Victoria (up 13.1 per cent) followed by Queensland (up 10.9 per cent), South Australia (up 9.4 per cent), NSW (up 7.8 cent) and Western Australia (down 13.2 per cent). No consistent data was available for other states and territories.
Personal finance : The seasonally adjusted series for the value of total personal finance commitments fell by 1.4 per cent in January after rising by 2.1 per cent in December. 
Revolving credit commitments fell by 1.6 percent and fixed lending commitments fell by 1.2 per cent.
Personal loans are down 8.1 per cent over the year.
Within personal fixed finance commitments,  loans for new cars were up by 1.0 per cent on a year earlier while loans for used cars were down by 2.4 per cent. Loans for residential blocks of land were down by 10.0 per cent on a year ago – the 14th  decline in 15 months.
Lease finance : Lending rose by 3.7 per cent in January and was up 18.8 per cent over the year.
<a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.59.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%209.59.36%20AM.png" alt="">
What is the importance of the economic data?
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.
What are the implications for interest rates and investors?
The slowdown in new lending runs counter to other indicators such as record dwelling starts, record tourism and strong employment growth. Still, it does accord with record car sales. Overall it appears that consumers and businesses remain happy to use their own funds to make purchases.
 <a href="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.00.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/14/Screen%20Shot%202016-03-14%20at%2010.00.30%20AM.png" alt="">
The Reserve Bank will maintain its ‘easing bias’ although it may publicly express doubts about the ability of lower rates to boost activity.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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