<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

<p>&nbsp;</p>

<p>Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.</p>

<p>The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.</p>

<p>The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.</p>

<p>The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370975]</p>

<p>Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.</p>

<p>Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.</p>

<p>Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370981]</p>

<p>Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.</p>

<p>“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.</p>

<p>“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”</p>

<p>“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.”<br />
[smartcode_project:default project_id=144441 project_image_fid=370977]</p>

<p>The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.</p>

<p>Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.</p>

<p>The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.</p>

<p>The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370980]</p>

<p>Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.</p>

<p>“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.</p>

<p>“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”</p>

<p>A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.</p>

<p>That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.</p>

<p>The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370978]</p>

<p>According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.</p>

<p>Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.</p>

<p>The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.</p>

<p>The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.</p>

<p>That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.</p>

<p>The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370979]</p>

<p>The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.</p>

<p>“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.</p>

<p>“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”</p>

<p>The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.</p>

<p>[smartcode_project_cta:default project_id=144441]</p>


Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

<p>National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.</p>

<p>The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.</p>

<p>Multiplex has been appointed the builder, and construction is now underway.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365784]</p>

<p>Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.</p>

<p>Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.</p>

<p>“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.</p>

<p>He said NAB’s early support was instrumental in helping establish the company’s development model.</p>

<p>“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.</p>

<p>“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365771]</p>

<p>Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.</p>

<p>Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.</p>

<p>Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.</p>

<p>Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.</p>

<p>The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365768]</p>

<p>Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.</p>

<p>Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.</p>

<p>Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


NAB funds $1 billion Surfers Paradise apartment development, Palmera

<p>Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.</p>

<p>The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.</p>

<p>The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.</p>

<p data-end="792" data-start="529"><img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" /></p>

<p data-end="1040" data-start="794">According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”</p>

<p>The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.</p>

<p>The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.</p>

<p>Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.</p>

<p>“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.</p>

<p>The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.</p>

<p>The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" /></p>

<p>The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.</p>

<p>While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.</p>

<p>“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.</p>

<p>According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.</p>

<p>“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.</p>

<p>“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”</p>

<p>The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.</p>

<p>Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.</p>

<p>&nbsp;</p>

<p>The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" /></p>

<p>St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.</p>

<p>Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.</p>

<p>The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.</p>

<p>More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.</p>


First look: Aqualand joins St Leonards apartment party

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<p>EXPERT OBSERVER</p>
<p>We have pushed out our expected timing of the next cash rate cut by the RBA to February 2020, where we expect a further reduction of 25bps to a new low of 0.5%.</p>
<p>It is at this level of the cash rate where the RBA has previously stated it would outline a ‘package’ of unconventional policies if further monetary easing is required to support growth, full employment and the return of inflation to target.</p>
<p>The RBA Governor is speaking on “Unconventional Monetary Policy” on November 26<sup>th</sup>.</p>
<p>To be clear, we think that the RBA should actually provide a further interest rate cut next month with private sector growth remaining weak and little evidence to date that prior easing or the tax rebates has done enough to offset the weakness in the economy.</p>
<p>However, for now, the RBA appears to be in a holding pattern, while it assesses the impact of prior rate cuts and ‘the gentle turning point’.</p>
<p>We see an improvement in growth over time but not to a sufficiently strong rate of growth to prevent the unemployment rate beginning to rise.</p>
<p>At the same time, the Government does not seem to be inclined to provide material fiscal stimulus in the near term, which increases the need for the RBA to ease further (including a further rate cut and unconventional policy) should our forecast of a deteriorating labour market materialise.</p>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">We now expect the RBA to cut the cash rate by 25bps to 0.5% in February 2020 – and potentially announce a package of unconventional policy should there be a need to provide further stimulus to the economy going forward.</div>
<div class="column"> </div>
<div class="column">Previously we had pencilled in a cut for December (the fourth this year) – and still consider this the best course of action – but the RBA has signalled it is in ‘wait and see’ mode.</div>
<div class="column">
<br>Growth looks to have remained weak in Q3, with our expectation for quarterly growth now 0.3% (1.5% y/y) – a small slowing from the previous two quarters. This deterioration comes despite the support provided by tax cuts which look to have provided little offset to the weakness in consumption with retail sales declining in Q3 – though it is likely too early to see the impact of recent rate cuts.</div>
<div class="column"> </div>
<div class="column">In addition, NAB’s internal modelling suggests that the services component of consumption was also weak in Q3.</div>
<div class="column"> </div>
<div class="column">In the business sector, both business confidence and conditions have remained below average in the first month of Q4 – though encouragingly have not deteriorated further.</div>
<div class="column"> </div>
<div class="column">The forward-looking indicators suggest little significant signs of a turnaround.</div>
<div class="column">
<br>Further out we have broadly maintained the shape of our growth forecasts.</div>
<div class="column"> </div>
<div class="column">We expect growth of 1.6% this year, before a small improvement to 2.1% in 2020 and 2.4% in 2021. These below average rates of growth lead to a small rise in the unemployment rate.</div>
<div class="column"> </div>
<div class="column">Inflation is expected to remain weak and only reach the bottom of the target band by the end of our forecast horizon.</div>
<div class="column"> </div>
<div class="column">The key dynamics behind our assessment of the economy continue to be headwinds from a weak consumer and a significant downturn in housing construction.</div>
<div class="column"> </div>
<div class="column">We have also lowered our business investment forecasts a touch. These weak outcomes in private domestic demand continue to be partly offset by strong public sector spending and growth in exports – preventing a more troublesome slowing of growth. Our global outlook remains broadly unchanged.</div>
<div class="column"> </div>
<div class="column">While we think that fiscal policy could be used to effectively support the economy and the recent easing in monetary policy – this increasingly appears unlikely to occur in the required time frame.</div>
<div class="column"> </div>
<div class="column">We think the government should act to bring forward infrastructure investment (where constraints allow) and that an earlier introduction of planned tax cuts could usefully bolster household income growth and spending.</div>
<div class="column"> </div>
<div class="column">In addition, investment allowances to support and bring forward investment may help, as would lifting Newstart payment rates.</div>
<div class="column"> </div>
<div class="column">The risk of fiscal policy remaining on the sidelines for too long, increases the chance that the RBA will ease further than otherwise (including both further rate cuts and the use of QE) though both of the latter see longer lags in boosting growth.</div>
<div class="column"> </div>
<div class="column">As previously outlined we see the risk of a move to unconventional policy by mid-next year without material support from fiscal policy.</div>
<div class="column"> </div>
<div class="column">We think that initially the RBA could flag a package of options at around a 0.5% cash rate and would begin to implement these as rates are cut further in this scenario.</div>
<div class="column"> </div>
<div class="column">Initially, we think it is highly likely the RBA would shift to an explicit form of forward guidance and purchase government bonds.</div>
<div class="column"> </div>
<div class="column">Other unconventional measures could include a broader range of asset purchases and increasing liquidity in the short-term money market.</div>
<div class="column"> </div>
<div class="column">Long-dated repurchase agreements to banks are another option.</div>
<div class="column"> </div>
<div class="column">The choice of instruments and size of the package is likely to reflect both economic conditions and financial market circumstances at the time of implementation.</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<p><em><strong>ALAN OSTER</strong> is the NAB Group Chief Economist</em></p>
</div>
</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

NAB pushes next rate cut out to February 2020: NAB's Alan Oster 

<html><body>
<p>NAB's latest profit result showed a slowdown in the bank's home loan growth.</p>
<p>Its chief executive Phil Chronican called it out as a key weak spot, although <span>there is some better activity coming through from the housing market recovery, with mortgage applications jumping 18 percent in recent weeks</span>.</p>
<p>"This year has been very challenging, requiring significant actions for us to deal with past issues and make real changes aimed at earning trust with customers and the community," Mr Chronican said.</p>
<p>The results showed NAB's housing portfolio contracted in the September quarter.</p>
<p>There was also a small contraction in its net interest margin (NIM), which compares the cost of funds with what it charges for loans.</p>
<p>“Home loan growth in Australia is clearly an area of disappointment for us,” Mr Chronican said.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/7/NAB%20lending.jpg" alt=""></p>
<p><span>Impaired loans more than 90 days behind in repayments rose, due to rising mortgage delinquencies.</span></p>
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<p><span>The ratio of 90+ days past due and gross impaired assets to gross loans and acceptances increased 22bps to 0.93 percent.</span></p>
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<p>National Australia Bank announced a full-year net profit of $4.8 billion, down 13.6 per cent on 2018, slightly below market expectations.</p>
<p><span><span>NAB has followed its rivals in slashing its final dividend, with shareholders to receive a fully franked 83 cents, down from 99 cents last year.</span></span></p>
<p><span><span>It noted o<span>ver-the-counter branch transactions are down 30 percent.</span></span></span></p>
<p><span><span><span>Its call centre volumes are down 17 percent.</span></span></span></p>
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NAB reports "disappointing" home loan growth 

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<p>There seems to be no stopping the housing markets in Sydney and Melbourne, with strong growth forecasts for 2020 emerging off the back of the near two year downturn.</p>
<p>NAB have forecast house values in the two major capital city markets to rise 7.4 per cent in 2020.</p>
<p>"We have revised up our expectations for residential property prices," NAB chief economist Alan Oster advised.</p>
<p>"Prices have risen relatively sharply over the past 3 months after bottoming in April - led by gains in Sydney and Melbourne.</p>
<p>"Overall, we now expect the CoreLogic 8-Capital City house price index to be down around -0.6% in 2019, but to return to positive reads in Melbourne and Sydney.</p>
<p>"We expect prices to continue to rise at a moderate pace in 2020, lifting by 4.5% over the year.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/24/NAB%20HOUSE%20PRICE%20FORECASTS.jpg" alt=""></p>
<p>NAB said they changed their forecast given the "significant adjustment" in prices on the east coast since mid-2017 after 15 per cent and 11 per cent peak to trough declines in Melbourne and Sydney.</p>
<p>"Despite these declines being relatively large, the adjustment appears to have occurred in an orderly manner following earlier prudential tightening and waning of domestic and foreign investor demand," NAB said.</p>
<p>"These adjustments also followed a period of exceptional growth, with Sydney prices having increased by over 70% in the 5 years prior to the downturn, while Melbourne prices were up over 50%."</p>
<p>NAB believe market activity will remain weak despite the stabilisation in prices.</p>
<p>"Dwelling investment is expected to decline relatively sharply over the next few quarters - though from a high base.</p>
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<p><span>"While the pipeline of work to be done remains high, it is likely this will be quickly eroded with high rates of work done. </span></p>
<p><span>"Building approvals have continued to trend down, suggesting little replenishment to the flow of new work."</span></p>
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<p>The NAB Residential Property Index <a href="/news/nab-residential-property-index-ticks-into-positive-for-first-time-since-mid-2018">has moved back into positive territory</a> for the first time since mid-2018, reflecting the uptick in market activity in recent months.</p>
<p>NAB has <a href="/news/melbourne-apartments-to-outperform-sydney-in-2020-nab">forecast stronger growth in Melbourne apartments in 2020</a> compared to Sydney.</p>
<p class="Bodycopy"> </p>
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jrobinson-rf4aSBido9

Sydney and Melbourne house values to rise over seven percent in 2020: NAB

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<p>The NAB Residential Property Index has ticked in to positive territory for the first time since mid-2018 as the rebound in the capital city housing markets continues to gather steam.</p>
<p>The Index, a measure of housing market sentiment based on the expectations of property professionals for both capital growth and rents, rose 26 points in the September quarter to an above average +18.</p>
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<p>The average survey expectation for national house prices for the next 12 months is positive for the first time since Q1 2018.</p>
<p> <span lang="EN-GB">“The results suggest the Australian housing market is on the way to recovery.” </span>NAB chief economist Alan Oster said.</p>
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<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/24/NAB%20Residential%20Propery%20Index.jpg" alt=""></p>
<p class="Bodycopy"><span>The average survey expectation for national house prices for the next 12 months is also positive for the first time since the first quarter of 2018, with prices expected to strengthen moving into 2021.<span class="Apple-converted-space"> </span></span></p>
<p class="Bodycopy"><span>Property professionals in all states except WA expect to see positive gains in the next year, with Victoria and NSW leading the way.</span></p>
<p class="Bodycopy"><span>“This marks a sharp reversal from the previous survey where Victoria and NSW were expected to be the weakest states for price growth and the only states where prices were tipped to fall” Oster said.</span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/24/NAB%20residential%20index%20by%20state.jpg" alt=""></p>
<p class="Bodycopy">Sentiment improved sharply among property professionals in VIC, with the state index climbing steeply by 48 points to +40 to record the best result in the country by some margin.</p>
<p>Only Western Australia saw its sentiment decline.</p>
<p>Following the resurgence in house values, NAB have amended their forecasts for 2020, now predicting <a href="/news/sydney-and-melbourne-house-values-to-rise-over-seven-percent-in-2020-nab">7.4 per cent gains in both Sydney and Melbourne</a>.</p>
<p class="Bodycopy">They <a href="http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/105652-melbourne-apartments-to-outperform-sydney-in-2020-nab" target="_blank">expect Melbourne to outdo Sydney in the apartment ranks</a>, with 7.4 per cent gains in the unit market compared to Sydney's 4.3 per cent.</p>
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NAB residential property index ticks into positive for first time since mid-2018

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<p>NAB have forecast the next RBA cut will come before we tick in to 2020.</p>
<p>In their report The Forward View, NAB Economics are predicting a December rate cut, a fourth cut this calendar year, which will bring the official cash rate down to a historic low 0.5 per cent.</p>
<p>Economists Gerard Burg, John Sharma and Phin Ziebell, co-authors of the report, suggest the NAB continue to expect growth to remain below trend, with just a small improvement expected.</p>
<p>They also expect the labour market to deteriorate slightly with the unemployment rate edging higher, with inflation to also remain weak.</p>
<p>"With these predictions largely a continuation of recent trends, it is likely that we will see a further reduction in interest rates by the RBA," the report notes.</p>
<p>"While the RBA has now lowered rates three times this year, taking the cash rate to a record low of 0.75%, we think that further stimulus will be required to support the economy, given the private sector remains weak and heightened global uncertainty poses significant risk.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/9/NAB%20Key%20Economic%20Forecasts.jpg" alt=""></p>
<p> </p>
<p>"We have pencilled in a further cut in the cash rate of 25bps in December taking rates to a new low of 0.5%."</p>
<p>NAB see potential for a further cut in the first half of 2020 should downside risk materialise and more significant fiscal stimulus fail to eventuate.</p>
<p>"The key dynamics behind our assessment of the economy continue to be headwinds from a weak consumer and a significant downturn in housing construction," NAB advise.</p>
<p>"That is being partly offset by strong public sector spending and growth in exports.</p>
<p> </p>
<p>They suggest that the recent tax cuts appear to have failed to provide a significant boost to household spending given retail sales growth remains soft.</p>
<p>"We think the recent rate cuts will have an impact, but the effects will take longer and be more variable, which will make them less apparent.</p>
<p> </p>
<p>NAB have positive forecasts for the national housing market.</p>
<p>"Conditions in the established housing market continue to brighten, with house prices continuing their recovery in Sydney and Melbourne.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/9/NAB%20House%20Prices.jpg" alt=""></p>
<p>"It is likely that lower interest rates, low unemployment and still strong population growth, combined with a pull-back in construction, will support prices going forward, there are clearly a number of state specific factors at play."</p>
<p>Despite the turnaround in price conditions, the continuing building approval decline is likely to put some downward pressure on the market.</p>
<p>"The activity side of the market is likely to continue to weaken with building approvals continuing to trend down.</p>
<p>"Overall, we expect the downturn in the housing construction cycle to continue.</p>
<p>"We expect further falls in dwelling investment with approvals continuing to trend lower and the large pipeline of work outstanding to be rapidly depleted.</p>
<p>"The increase in prices to date is a positive, but will need to be sustained, with activity returning to more normal levels in the market before residential construction sees a recovery.</p>
<p>"We continue to expect a modest increase in process over the next year or so."</p>
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NAB forecasts next rate cut in December

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<p>Three of the Big Four Banks have dropped rates on their fixed home loans in the past week, with NAB the latest all set to cut its rates by up to 0.40%.</p>
<p>In total, 17 lenders – including CBA and ANZ – have cut rates on fixed home loans since the RBA's October 1 decision.</p>
<p>In the month before the October rate cut, 27 lenders cut fixed rates, in particular Westpac, which slashed rates by up to 1.30%.</p>
<p><img src="https://www.urban.com.au/images/2019/10/8/Rate%20cuts%201.JPG" alt=""></p>
<p><em>(Source: RateCity.com.au)</em></p>
<p>Paul Marshall, chief executive at RateCIty.com.au, said this flurry of rate cuts is a sign banks are foreseeing a further cash rate cut, which could come as soon as next month.</p>
<p>“Fixed rates have been tumbling since the last rate cut, which indicates lenders could be pricing in yet another RBA cut,” he said.</p>
<p>“As a result, we are seeing record low fixed rates and it’s now possible to lock in a rate under 3% for five years. This suggests many banks are forecasting a sustained period of low rates.</p>
<p>“Many punters appear to be betting on a further rate cut as soon as Melbourne Cup day where we could see the cash rate drop to 0.50%.”</p>
<p><img src="https://www.urban.com.au/images/2019/10/8/Rate%20cuts%202.jgp.JPG" alt=""></p>
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NAB announce fixed rate cuts following RBA's October decision

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<p>A former National Australia Bank financial adviser Max Eung has been sentenced to a three years <span>intensive corrections order </span>by the New South Wales District Court for taking $166,000 belonging to his clients.</p>
<p>Mr Eung was convicted on Friday of dishonestly obtaining a financial advantage by taking money from client accounts in 2016.</p>
<p>Max Kiattisak Eung, of Tempe, New South Wales, was sentenced to three years imprisonment to be served by way of an intensive corrections order.</p>
<p>In June 2018, ASIC permanently banned Mr Eung from providing financial services and engaging in credit activities.</p>
<p>Between March 2016 and December 2016, Mr Eung dishonestly obtained a financial advantage of $166,500 from accounts held with MLC Limited and Nulis Nominees (Australia) Limited. The account holders who were his clients did not authorise withdrawal of those funds from their accounts.</p>
<p>Mr Eung also created false bank accounts in the names of clients using their confidential information, made withdrawals from client funds held in false bank accounts and impersonated his clients to attempt to avoid detection.</p>
<p>At the time, Mr Eung was a NAB financial adviser.</p>
<p>Mr Eung was an authorised representative and financial adviser with NAB from 21 May 2015 to 20 December 2016 and a credit representative of a credit licensee from 14 September 2017 to 23 October 2017.</p>
<p>After impersonating his clients to attempt to obtain access to funds in the second false bank account, Eung incorporated a company for the purpose of operating a mortgage broking business.</p>
<p>ASIC found that Mr Eung had engaged in dishonest conduct, was likely to contravene a financial services law, and was not of good character. ASIC also found that Mr Eung was likely to contravene credit legislation and was not a fit and proper person to engage in credit activities.</p>
<p>The matter was prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC.</p>
<p>Mr Eung pleaded guilty to the two offences.  </p>
<p>The action is part of ASIC's Wealth Management Project. which focuses on the conduct of Australia’s largest financial advice licensees – NAB, Westpac, CBA, ANZ, Macquarie and AMP.</p>
<p>As part of its Wealth Management Project, ASIC has banned 60 advisers and three directors from the financial services industry. Three bannings are the subject of appeal.</p>
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Intensive corrections order for former NAB financial adviser Max Eung

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<p>The National Australia Bank have brought forward their rate cut forecasts, now suggesting there will be a cut next month.</p>
<p>Their decision was based on the muted impact of the income tax cuts, which has "failed to offset growing weakness in the household sector."</p>
<p>"With monetary policy involving longer lags, we think the urgency to lower rates sooner has increased," NAB economists Gareth Spence and Kieran Davies said.</p>
<p>"We previously anticipated some further support from fiscal policy but now believe this is unlikely in the near term," they advised.</p>
<p>NAB have also brought forward their next rate cut to December, which would bring the official cash rate down to 0.5 per cent.</p>
<p>They had initially forecasted cuts in November and then February. They forecast the rate will drop down to 0.25 per cent by mid-2020 without meaningful fiscal stimulus.</p>
<p>"<span style="font-size: 12.16px;">While strong public-sector spending has been a significant support to growth over the past year, as have exports of commodities, this pattern of growth suggests unemployment is likely to edge higher," Spence and Davies said.</span></p>
<p><span style="font-size: 12.16px;">"</span><span style="font-size: 12.16px;">Our current forecasts look for this divergence to continue, with dwelling investment declining further and consumption growth remaining modest."</span></p>
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NAB bring forward RBA cash rate cut to October

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<p>The NAB bank branch in a prime section of the Church Street in Brighton has been sold for $6,105,000 at auction. </p>
<p>Fitzroys agents Chris James and Mark Talbot sold 35 Church Street on behalf of private owners, who had held the site for 23 years.</p>
<p>A private Melbourne-based investor purchased the property.</p>
<p>On a 288 square metre site, the property has an 8.5 metre frontage to Church Street.</p>
<p>NAB has a long-term lease over the property, and the sale price reflected a sharp 3.5% yield.</p>
<p>Over 100 enquiries were received from around Australia and offshore, according to James. </p>
<p>The property is positioned within the tightly held section of Church Street, between Carpenter and St Andrews streets, which is currently experiencing a record low 0% retail vacancy.</p>
<p>Neighbouring tenants include Australia’s leading high-end retailers in Country Road, Mecca, Scanlan Theodore and Saba while the Dendy cinema complex is opposite.</p>
<p>“The immediate catchment has been bolstered with the introduction of medium-density residential developments in what is broadly a low-rise suburb, while the suburb is home to a number of highly sought after private schools,” James said.</p>
<p>Fitzroys sold the two-level, 110 square metre building home stationery company Smiggle at 67 Church Street last year for $2.41 million, at a yield of 3.2%.</p>
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Church Street, Brighton NAB branch sold for $6.1 million 

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<p>ASIC has commenced proceedings in the Federal Court against National Australia Bank for breaches of the law arising from failures with its Introducer Program.</p>
<p>ASIC alleges that between 3 September 2013 and 29 July 2016, NAB accepted information and documents in support of consumer loan applications from third party introducers who were not licensed to engage in credit activity.</p>
<p>As a result, ASIC alleges NAB breached s31(1) of the<span class="Apple-converted-space"> </span><em>National Consumer Credit Protection Act 2009</em><span class="Apple-converted-space"> </span>(National Credit Act) which prohibits credit licensees from conducting business with parties engaging in credit activity without an Australian credit licence (ACL). ASIC also alleges that NAB breached its obligations under s47 of the National Credit Act requiring it to engage in credit activities efficiently, honestly and fairly and to comply with the Act.</p>
<p>The proceedings relate to the conduct of 16 bankers accepting loan information and documentation from 25 unlicensed introducers in relation to 297 loans.</p>
<p>One of the key objectives of the National Credit Act’s licensing regime is consumer protection. The imposition of a licensing regime was intended to address concerns that third-party referrers (including brokers and introducers) may misrepresent consumers’ financial details to ensure loans are approved, and their commissions are paid, in circumstances where the consumers’ true financial position means that the loan should not be made.</p>
<p>ASIC is asking the Court to find that NAB breached the National Credit Act and to impose a civil penalty on NAB for doing so. The maximum penalty for one breach of s31(1) of the National Credit Act, during the time of contravention, was 10,000 penalty units, or $1.7 to $1.8 million.</p>
<p>The proceeding will be listed for directions on a date to be determined by the Court.</p>
<h2>Background</h2>
<p>Since at least 2000, NAB operated the credit industry’s largest referral program, known as the ‘Introducer Program’, whereby a third-party introducer could ‘spot and refer’ a potential customer to NAB in exchange for commission if the customer entered into a loan with NAB. Between 2013 to 2016, NAB’s Introducer Program generated $24 billion dollars’ worth of loans.</p>
<p>Introducers referring customers through the Introducer Program were only to provide NAB with the potential customer’s name and contact details. In order for an introducer to provide NAB with further information or documents, the law required that the introducer be authorised under an ACL.</p>
<p>ASIC’s investigation uncovered that NAB bankers overstepped the ‘spot and refer’ requirement by accepting information and documentation from the 25 unlicensed introducers, including completed home loan applications, payslips, copies of customer identification documents and more. This behaviour can pose a serious risk to consumers, as ASIC also identified that in some instances the documents provided to NAB by the unlicensed introducers were false.</p>
<p>During the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, NAB identified that misconduct in their Introducer Program went undetected until 2015 for reasons including:</p>
<ul>
<li>no head of the Introducer Program, with a General Manager only being appointed in October 2016</li>
<li>a lack of systems to monitor or review introducers, and</li>
<li>controls over the Introducer Program relied heavily on bankers.</li>
</ul>
<p>The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry Interim Report Volume 2: Case Studies details a range of misconduct in relation to the NAB Introducer Program (page 1 -16). This includes:</p>
<ul>
<li>the misconduct identified in the present proceedings</li>
<li>the misconduct that was the subject of ASIC’s administrative action against former NAB Branch Manager Rabih Awad; and the misconduct that was the subject of ASIC’s administrative action against former NAB Branch Manager Rabih Awad, and</li>
<li>the misconduct identified in ASIC’s criminal prosecution and administration action against former NAB Branch Manager Mathew Alwan.  </li>
</ul>
<p>In July 2018, ASIC banned Mr Awad (who is one of the 16 bankers identified in the present proceedings) from engaging in credit activities and providing financial services for a period of seven years.</p>
<p>Mr Awad was found to have given NAB false payslips, letters of employment, and entered false referee contact details in NAB’s lending systems in multiple home loan applications. A majority of the false documentation submitted to NAB by Mr Awad was provided to him by a real estate agent who was previously registered as a NAB Introducer.</p>
<p>On 20 August 2019, Mr Alwan (who is not one of the 16 bankers identified in these proceedings) pleaded guilty to one count of ‘intention to defraud by false or misleading statement’, an offence under the NSW Crimes Act. The charge relates to Mr Alwan’s conduct in relation to 24 home loan applications which he falsely told NAB were referred by his uncle’s business ‘Suit Club’, a registered NAB Introducer. This resulted in NAB paying Suit Club $56,955 worth of commission.  In October 2018, ASIC permanently banned Mr Alwan from engaging in credit activities and providing financial services for the same misconduct.</p>
<p>On 25 March 2019, NAB announced that it will be terminating the Introducer Program on 1 October 2019.</p>
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