Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

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>
<div> </div>
<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>
<div> </div>
<div>Well, what happened?</div>
<div> </div>
<div>It wasn't that the economy suddenly became stronger. Hardly! </div>
<div> </div>
<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>
<div> </div>
<div>And all measures of inflation are actually below the target 2 to 3 per cent range. Then, what? </div>
<div> </div>
<div>Change of Governor</div>
<div> </div>
<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>
<div> </div>
<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>
<div> </div>
<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>
<div> </div>
<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>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/03/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div>
<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>
</div>
 
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.
<div> </div>
<div>Trump bump</div>
<div> </div>
<div>The other significant event in 2016 was Donald Trump's election victory in the US, which promptly changed the inflation outlook.</div>
<div> </div>
<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>
<div> </div>
<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>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/03/RBA5.jpg" target="_blank">Click to enlarge</a></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/RBA5.jpg" alt="">
<div> </div>
<div>Easy, tiger!</div>
<div> </div>
<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>
<div> </div>
<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.
<a href="/images/2016/09/13/Screen%20Shot%202016-09-13%20at%2010.24.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/13/Screen%20Shot%202016-09-13%20at%2010.24.03%20AM.png" alt="">
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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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