Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

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Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Mortgage Rate

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One of the reasons some of the price growth has eased across the Sydney residential property market is that banks won't lend as much.
They have been offering home buyers reduced loan amount approvals for some time now.
So when buyers turn up at open for inspections and auctions this spring, they are likely to have less in their pocket that perhaps they would have had this time last year.
It is something that vendors need to heed as banks have cut tens of thousands of dollars off the maximum amounts they will lend prospective home buyers.
Its their attempt to dampen risks in the housing market.
The average borrowing capacity for a hypothetical typical owner occupier customer sits now around $570,000, down $110,000 from $680,000 two years ago. 
The borrowing capacity of a hypothetical property investor customer has come back by $70,000.
The banks have firstly tweaked their lending mechanisms with tighter living expense assumptions.
Secondly the banks haven't been as accepting of exisiting income sources at face value, now applying calculations to reflect a little more uncertainty.
And thirdly the banks have also opted for more conservative interest rate buffers, in anticipation of rates going up at some stage.
We know this because an anonymous mortgage shopping study was recently conducted by Macquarie analyst Victor German who had his team posed as potential bank customers shopping for home loans.
They went to the ANZ, Commonwealth Bank, NAB, Westpac, St George, Bankwest, Bendigo and Adelaide Bank, Bank of Queensland and Suncorp.
German’s team told each bank they were a first-home buyer considering an owner-occupier or investment loan in interviews with the banks on the phone and in branches.
The analysts told bank representatives they were earning $105,000, had general living expenses of $1200 a month, were spending $1300 a month on rent, and had no dependents and a clear credit history. 
Based upon that criteria, the study found that major banks were willing to lend 14 per cent to 19 per cent less to owner-occupiers, and 12 per cent to 26 per cent less to investors, compared to two years ago.
Macquarie, which has conducted the mystery shopping exercise for three years, expects a "further tightening in borrowing limits."
The Australian Prudential Regulation Authority has likewise conducted its hypothetical borrower exercises. Indeed its 2014 serviceability assessments were used to call for lending standards to be tightened. 
Before the lending crackdown commenced three years ago, strong competition between lenders had eroded standards, albeit at the margins, to levels that lacked "common sense," the Australian Prudential Regulation Authority suggested in late 2015.
Lenders are now applying "at least minimum haircuts on uncertain income sources, and some have gone further to apply larger discounts to rental or other income," APRA's general manager Heidi Richards said last year.
This article first appeared in the Daily Telegraph.
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jchancellor-FAypfDUnLy

Banks won't lend as much

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Shadow banks are charging interest-only investors nearly 60 basis points less for standard variable loans than the big bank competitors.
The big savings for property buyers explains their growing popularity, analysts have suggested.
Shadow bankers are however bracing for growth speed limits and pressures to constrain interest-only lending as faced by their major peers. 
John Khall, chief executive and founder of Pacific Mortgage Group, said it has not happened yet "but we expect some changes."
Their acceptance been facilitated by their prominence on online best-price comparator websites.
Moves by prudential regulators to increase regulation of the big banks has assisted in the shift to shadow banking finance. 
The shadow banks are non-authorised deposit taking institutions known as non-bank lenders.
Data suggests almost half their loan portfolios are interest-only borrowers, well above new regulatory standards intended to slow speculative lending. 
The big banks now need to keep interest-only loans to a 30 percent limit with their overall loan book. 
Shadow banks typically use securitisations to raise funding.
The are able to use low-cost distribution and lower regulatory capital requirements to out-price rivals.
Shadow banks on average out-price the majors on standard variable residential principal and interest by 60 basis points, standard variable investment principal and interest by 64 basis points, standard variable residential interest-only by 43 basis points and standard variable investment interest-only by 57 basis points.
The analysis published in Fairfax Media by Canstar, which monitors financial service products, is based on a $1 million loan with a loan-to-value ratio of 80 percent.
Using the ‘other financial intermediaries’ (OFIs) measure, the RBA said some time back that Australia's shadow banking sector is small relative to the global average, although they have surged after the APRA restrictions on investor lending. The RBA said earlier this year that it is watching the sector.
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j.ballantyne1990-6AQqhLzZaK

Interest only buyers seeking shadow banks to outprice the majors

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National Australia Bank (NAB) has announced further changes for residential investor and owner-occupier borrowers.
The rate for NAB’s 1 Year Package Fixed Rate for Residential Investment Home Loan has risen to 4.29 percent p.a. for principal and interest repayments.
For the 1 Year Package Fixed Rate for Interest Only Residential Investment Home Loan, rates changed to 4.39 percent p.a.
Fixed rates for all other interest only owner occupier and interest only residential investment loans increased by 0.10 percent p.a. 
“We are operating within a dynamic financial, economic and regulatory environment, and it’s important that we regularly review our pricing and policy measures across all of our home loan products to ensure we continue to lend responsibly,” a spokesperson from NAB told Australian Broker.
The changes made to our fixed rates on Friday 7 April 2017 apply to new loan accounts only.
Throughout March and the beginning of April, the Mozo website saw a spate of interest rate hikes from 40 lenders, including all four of the big banks.
"Investors were hammered in this round of increases, with rates rising an average of 0.19% on principal and interest loans, and 0.23% on interest only," Steve Jovcevski at Mozo noted.
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NAB lifts fixed rates for new borrowers

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GUEST OBSERVER
With an RBA rate rise looming and big banks already hiking rates across fixed rate home loans, it seems the rock bottom rates of 2016 are now a thing of the past for property buyers.
All four big banks have now slammed home borrowers with rate rises in the past couple of weeks, joining another 14 lenders who have pushed up variable rates out of cycle this month alone. 
The big banks have a history of higher than average interest rates - so far, since 2009, all the big banks have increased rates by more than the RBA did two times each (except NAB, who did it once.) They also all held back a full RBA rate cut 7 times a piece (although ANZ only did it 6 times.)
There are a couple of reasons for these recent rate hikes - the excuse the banks have given is that cost of funding is getting higher, so loan rates need to increase as well. 
The likelihood of an RBA rate increase sometime next year is also a consideration, particularly for fixed rate offers, as banks factor that into current rates that they won’t be able to adjust for the next two years or more. So for the rest of this year at least, it seems rates will only be pushed higher.
Investors will have it particularly tough, with APRA breathing down the necks of lenders after investment loans spiked toward the end of 2016. CommBank, which grew its investment loan portfolio by 8.02 percent over the last 12 months, has already started tightening criteria for lending to investors by dropping LVRs and limiting refinancing loans.
In fact, <a href="https://mozo.com.au/" target="_blank">Mozo</a> data shows that the average big banks interest rate premium on variable rate investor loans has doubled in the last year.
So things are looking gloomy for borrowers hoping to get a foot on the property ladder with a low rate loan, especially since big bank loans now account for 85% of the investor loan market, and 81 percent of owner-occupier loans.
That means now, when record low rates seem to be squarely behind us, is the time for new borrowers to really do their research into what offer is going to work best for their budget, and for those already paying off a mortgage to re-evaluate their situation and decide if it’s worth refinancing to lock in a good deal while they’re still around.
STEVE JOVCEVSKI is a property investment and home loan negotiator at <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>.
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The low rate mortgage party is over for property buyers: Mozo

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GUEST OBSERVER
At the start of a new year many of us make a number of resolutions that we wish to integrate into our lives. These resolutions can often include a commitment to eat better, exercise more or be better with our finances. Whether you’re aiming to become a better saver, or you’re wanting to save for a home deposit, the key is to not let your resolution fall flat. There are a few easy steps everyone can follow to ensure any financial resolutions become a reality. 1.  Set a goal  The key to saving more money is setting a financial goal that is specific and realistic.   You can have a large goal in mind, such as buying a home, but you should also break it up into smaller goals that will be easier to achieve.   If your goal is to save more money, give yourself a dollar figure and a target date to achieve that by, as this will keep you accountable. 
Savings calculators are helpful tools that can assist you in working out how much you can save a month and how long it will take for you to reach your savings goal.   You should review your goals at least once every six months to track how you’re doing. If you find that you are not making much progress, rather than giving up, make changes so that you can achieve your goals.   2.  Set up a budget  Mr Flavell said a budget was an essential factor in achieving any financial goal.     By creating a budget, you will have full control of your finances as you will know how much you are spending and saving.   Tracking where your money is going also allows you to make clear decisions about your purchases, see what expenses you can potentially cut back on, and plan your spending ahead of time.   A budget did not have to be too complicated.   It can be a simple document such as a spreadsheet, where you note down your income and all your expenses for the month.   The trick is to review and update it regularly to make sure it always aligns with your current financial or personal situation.   3.  Review your spending  You can boost your savings significantly by cutting back on certain expenses, or finding more affordable options. Look at your current contracts – like gym memberships and or your phone contract and see if there are easy ways for you to reduce the amount you spend each month. Call your gym up and ask for a discount, or research your phone provider options online and see if there is a cheaper supplier on the market.   While you may only save a few dollars here and there, not only does every cent count, but every cent takes you one step closer to your end financial goal. 4.  Reduce debt  Another great way to reach your financial goal faster is to pay down your existing debt.   The Christmas period is an expensive time of the year, so you have probably racked up debts on your credit card.   When you get your credit card bill, aim to pay these off completely or minimise them as soon as possible. You should also try and pay more than the minimum amount, which is typically 2 percent of your closing balance, to avoid paying additional interest.   When you pay off your debts, you free up your cash flow. This means you have more money in your back pocket each month that you can put towards your financial goals.   5.  Shop around for better deals  Now that you know how much you’re saving and how to potentially increase your cash flow, the next step is working out the best place to put your money.   If you want your money to work as hard as possible for you, you need to ensure you are saving it in the right location.   Get online and research the various options provided by Australia’s lenders. By doing your research, you will see what term deposit facilities or savings accounts will offer you the greatest return on your dollar.    Before making any final decisions however, speak with your bank or your local broker to ensure it is the right financial move for you and your end goals.
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
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Make your financial resolutions a reality this year: John Flavell

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<div>A couple of things happened in 2016 that changed the outlook for interest rates in Australia. </div>
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<div>Swaps had been seeking out lower and lower rates, yet fairly abruptly around September time someone or something called time on that particular party.</div>
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<div>Well, what happened?</div>
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<div>It wasn't that the economy suddenly became stronger. Hardly! </div>
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<div>In fact, GDP growth was actually negative for the third quarter of the calendar year, while employment growth went backwards in the months of both August and September too.</div>
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<div>And all measures of inflation are actually below the target 2 to 3 per cent range. Then, what? </div>
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<div>Change of Governor</div>
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<div>While we should be wary of imposing simplistic narratives over historical trends (with hindsight giving the supposed benefit of 20/20 vision), it appears that the change in Reserve Bank Governor may have been a factor.</div>
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<div>During the month of September, Philip Lowe began suggested that interest rate cuts are losing their power, and seemed to infer that further cuts would only be delivered reluctantly, if at all.</div>
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<div>From the first meeting he chaired in the first week of October, the <a href="https://rba.gov.au/media-releases/2016/mr-16-26" target="_blank">wording</a> of the Monetary Policy Statement concluded that policy was consistent with growth and inflation returning to target over time. </div>
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<div>Since the day of that October meeting, 6-month OIS rates have trended only in an hawkish direction, from 1.42 per cent back up to 1.50 per cent.</div>
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<div><a href="https://www.propertyobserver.com.au/images/2017/01/03/RBA1.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/03/RBA1.jpg" alt=""></div>
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The Reserve Bank of Australia now has a duty to "keep consumer price inflation in the economy to 2 to 3 per cent, on average, over the medium term", apparently implying no immediate need to cut rates.
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<div>Trump bump</div>
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<div>The other significant event in 2016 was Donald Trump's election victory in the US, which promptly changed the inflation outlook.</div>
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<div>Australia's bond yields had already starting ticking back up before Trump's election triumph, with the yield on government bonds with a 10-year maturity recovering from a low of just 1.83 per cent in August to 2.31 per cent.</div>
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<div>But then, after an initial post-election blip, the 10-year bond yield increased sharply to 2.87 per cent, before settling down a bit to finish the year at 2.78 per cent.</div>
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<div>Easy, tiger!</div>
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<div>Through November the indicative standard variable rate (SVR) for owner-occupier mortgages was 5.25 per cent, although of course by shopping around you can get much better deals than this (the indicative discounted rate was reported at 4.50 per cent, for example). </div>
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<div>The reported 3-year fixed rates for both owner-occupiers and investors were lower again at 4.10 per cent and 4.25 per cent respectively. </div>
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Can you comfortably afford to repay a mortgage in a 6% or even 7% scenario?: Pete Wargent

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Much like the final episode for a soap opera where the viewers are left waiting in the balance to know the outcome for the December quarter GDP.
Nobody saw this coming although for some strange reason I welcomed the result simply because it sent a firm message to Canberra to start doing something. Over the past six years all the federal government has done in terms of property prices is to pour more accelerants on the investment and established housing markets.
Despite tighter lending requirements being introduced in late 2014, Sydney real estate has continued to run amok climbing another 13.1 percent in the year to November. When you analyse the data over the last four years prices are up 60 percent and still increasing. What we do know with the current market is that prices are being driven by record low stock levels (see graphs below) marinated with record low interest rates.
As a result, we now see new data where the percentage of first home buyers in the owner – occupier market has plummeted to the lowest levels in twenty – five years. The banks internal data obviously has them concerned where over the past week they have raised the rates for interest only loans so they are now obviously starting to give the tree an almighty shake. It must also be noted that recently the banks stopped lending to Asian buyers in the off – the – plan markets although not much was said when these announcements were made.
 
Australian Treasury have just released a Working Paper – Foreign Investment and Residential Property Price Growth where they found there is absolutely no link to foreign buyers and high residential price growth. I wonder what market they are looking at when we see that Sydney house prices are up 60 per cent over the last four years. Maybe Treasury should ask the banks the reasons why they stopped lending?
Of course, they did not mention those Significant Investor Visas (SIV) which came into force on 24 November 2012 – aimed at attracting China’s super wealthy – China accounts for 89.9 per cent of SIVs issued. Since the introduction approximately 1600 SIVs have been issued for foreign applicants prepared to spend $5.000 million on complying investments. After a period of four years the applicants are eligible for permanent residency. The federal government is aware of recent reports that outlined that around 60,000 Chinese millionaires want to invest in Sydney and Melbourne.
The question I then put to the Prime Minister: Sydney and Melbourne are the two hottest property markets in Australia – why does he feel the need to further drive these markets by allowing 100 per cent of off – the – plan properties to be marketed offshore and why, do we need SIVs in the first place? If he were to cut off – the – plan from 100 per cent to 50 per cent and then shut – down the SIVs then we would start to see the property markets easing. Real estate agents will hate me for suggesting such a recommendation but I can live with that.
Whilst we are making much needed changes to the Australian property landscape it’s also high time investors had a cap on the number of properties they can own. With the Prime Minister’s popularity in the polls plummeting why not, introduce a Land Bank Tax and then get those 100,000 empty apartments in Sydney leased out to the market as they should be.
Now should you require further convincing please take a moment to analyse the following data that was extrapolated from pricefinder and compiled by our own RWM Research as at 1 December 2016. It certainly paints a very ugly picture that requires immediate action.
Mosman houses first then apartments below – 1998 to 1 December 2016.
<a href="/images/2016/12/09/RWM-Research-Mosman-Houses-Apartments.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/09/RWM-Research-Mosman-Houses-Apartments.png" alt="">
Source: RWM Research and pricefinder
Cremorne houses first then apartments below – 1998 to 1 December 2016.
<a href="/images/2016/12/09/RWM-Research-Cremorne-Houses-Apartments.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/09/RWM-Research-Cremorne-Houses-Apartments.png" alt="">
Source: RWM Research and pricefinder
Neutral Bay houses first then apartments below – 1998 to December 1 2016.
<a href="/images/2016/12/09/RWM-Research-Neutral-Bay-Houses-Apartments.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/09/RWM-Research-Neutral-Bay-Houses-Apartments.png" alt="">
Source: RWM Research and pricefinder
Now if you take a moment these same results would be mirrored across other Sydney suburbs so it should be clear by now the Sydney real estate market no longer requires your government’s stimulation. Who knows that by taking immediate action your embarrassing polling might even bounce? What the Sydney property markets actually need now is organic growth not artificial.
Whilst you are on the job please call your mate Mike Baird and tell him to take an axe to his insidiously high stamp duty which is why we have record low stock levels. You might even like to explain to him that from an economic stand – point less can mean more.
We will be back in 2017 where we will take – up where we left off and no, Australia will not be in recession when we return.
Have a Merry Christmas, a safe and wonderful New Year.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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A climactic finish to 2016: Robert Simeon

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Home borrowers may be hit with higher mortgage repayments by the big four banks next year, says one leading financial expert.
ABC News has reported that this is because of the net stable funding ratio – an international regulation to increase financial security of the banks by boosting the amount they hold in deposits.
This will decrease the reliance major banks have on overseas money markets by moving the focus to Australian customer deposits.
Speaking with the ABC, Brett Le Mesurier, banking analyst at Velocity Trade, said that the banks may need to reduce the discount they offer to certain borrowers by close to 2%.
“The banks have a standard variable rate, and then when customers go for a mortgage, they will be offered some level of discount,” he said.
“The discount can be anywhere up to 1.5% or more. It may be manifested by a reduction in the rate of discount that's being offered.”
With banks ultimately maintaining their margins, this will result in higher mortgage repayments for borrowers from as early as next year, Le Mesurier said.
“If they're paying more for their funding, [maintaining] the margin necessarily means that mortgage rates go up.”
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Big four banks could hike mortgage repayments in 2017

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Tasmania has see a spike in mortgage market activity, according to CoreLogic. But across the mainland activity in financing inquiry has been subdued.
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Tasmania sees mortgages market activity spike: CoreLogic

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Westpac, in a memo sent to mortgage brokers, has announced it was introducing a new Flexi First Option Home Loan and Flexi First Investment Property Loan offer for a limited time, to replace the existing Flexi First offers in market.
New principal-and-interest owner-occupied loan applications will receive an 89 basis point introductory discount for the first three years of the loan.
This would revert to a 45 basis point discount for the remaining loan term.
New principal-and-interest investment loan applications will receive a 96 basis point introductory discount for the first three years of the loan.
This would revert to a 52 basis point discount for the remaining loan term.
Westpac’s new Flexi First Option discounts came into effect Tuesday 23 August, the Australian Broker website advised.
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