Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

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The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

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Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

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“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

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Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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National Australia Bank have cut their three-year fixed investor interest only deals, making it the cheapest lender of the big four.
CBA have their rates at 4.29 percent, ANZ are at 4.49 percent and Westpac are the only one breaking the 4.5 percent barrier at 4.54 percent.
NAB were the last of the big four banks this month to announce it was moving a number of its fixed rate loans, with the other three making cuts earlier in March.
Some loans, such as the five-year fixed owner occupier principal and interest, has been by 50 basis points. It went from 4.59 percent to 4.09 percent.
Three-year, interest-only fixed deals for investors have dropped from 4.49 percent to 4.19 percent.
All the changes only apply to new fixed rates deals and not for existing borrowers.
A NAB spokeswoman said the changes was a result of the bank wanting “to help Australians achieve their property goals.”
The Reserve Bank of Australia board this week kept the cash rate on hold at 1.5 per cent.
AMP Capital's Shane Oliver, among other experts, believes there may not be another cash rate move until later this year or in 2019.
 
 
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NAB cut investor interest only deals and outdo other big four 

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Fractional property investment platform BrickX have announced that NAB Ventures, National Australia Bank’s corporate venture capital arm, has invested in the startup.
The deal is part of a $9 million Series A funding round.
BrickX allows Australians to invest in residential property by buying 'Bricks' in a BrickX property.
The platform means people can invest in residential property for a few hundred dollars.
NAB Ventures – which supports businesses and entrepreneurs in their quest to build leading technology companies – saw the investment potential in democratising property ownership in the Australian market.
The value of BRICKX in providing Aussies with a financial stepping stone to achieve the Australia Dream of home ownership was another driver for investment. 
BrickX CEO Anthony Millet said BrickX is expanding rapidly.
“Housing affordability continues to be a priority for Australia’s banks, so the alignment between BRICKX and NAB Ventures has a strong and unified purpose.
“The prohibitive costs and high deposits needed to gain access to the property market, has left many out in the cold. However, BRICKX has opened up the residential property asset class as an alternative investment to any of the traditional investment options. 
“Considering the recent volatility in the cryptocurrency and stock markets, Australians are recognising the longer-term stability of property prices.” 
Todd Forest, Managing Director of NAB Ventures, said he was excited to invest in BRICKX and help support a new way of approaching property ownership. 
“The aspiration for property ownership has long been the Australian dream, however buying a property often has challenges for many consumers – such as the rise in house prices in some areas and trying to save for a deposit. 
“BRICKX is disrupting this journey, in how it provides consumers with access to the property market and engages with them in creating a pathway to property ownership.
“NAB Ventures chose BRICKX as the leading opportunity, based on its unique business model, exceptional user experience and the opportunity to leverage the platform to innovate and help more Australians with their home ownership goals.” 
Founded in 2014, BRICKX launched to retail investors in September 2016 and has grown to offer 14 properties across Sydney, Melbourne and Adelaide along with more than 9,000 members.
They have properties in Sydney's Mosman, Manly, Potts Point, Darlinghurst and Bondi Beach, as well as a terrace home in Melbourne's Brunswick and a stone fronted villa in South Adelaide.
The NAB Ventures investment in the 'Series A' funding round for BRICKX follows on from Westpac’s Reinventure investment in late 2017.
Since the Reinventure investment, the number of BRICKX members has grown by nearly 25%. 

 
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j.ballantyne1990-6AQqhLzZaK

NAB banks on property tech disruptor BRICKX to rebuild hope in the Australian Dream

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GUEST OBSERVER
Weak wages growth and slow progress reducing unemployment means it is now less likely that the RBA will raise rates twice in 2018 (our previous forecast).
We now see the RBA raising rates only once in late 2018 – with November 2018 as the most likely start date for a gradual RBA rate hiking cycle.
By late 2018 growth should be near 3% and the unemployment rate approaching 5%. That, together with increasing tightness in employers’ ability to find suitable labour, may finally see private sector wages start to moderately edge up.
Inflation by that time should also be approaching the bottom of the 2-3% target range.
That said, much will still depend on the data flow – it is not impossible that the RBA stays on hold for all of 2018 and raises rates in early 2019.
For some time NAB has been forecasting that if the economy continues to improve as we expect, then the RBA’s confidence that inflation will return to their 2-3% target band would grow and with that they would begin to lift the cash rate from its current low level of 1½ percent.
We have emphasised that the key data that will give the RBA this confidence is a turn in the recent depressing trend on wages growth.
Last week’s Q4 2017 wage numbers were in that sense a little disappointing.
While total wages did increase a touch (to 0.55% unrounded) there was no acceleration in private wages growth. That stands in contrast to traditional models that suggest wage increases are overdue and runs counter to employers’ reports that it is getting more difficult to find suitable labour.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/28/private.jpg" target="_blank">to enlarge.</a>
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Click here <a href="https://www.propertyobserver.com.au/images/2018/2/28/labour.jpg" target="_blank">to enlarge.</a>
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In recent RBA communications (including the Statement on Monetary Policy and the Governor’s testimony to the House Standing Committee on Economics) the RBA has emphasised that they expect to make further progress reducing unemployment with some uptick in wages and inflation likely as a result. But the Bank has emphasised that this progress is expected to be “gradual”.
It is also worth noting that the Australian labour market remains in a somewhat different state than the US labour market. In the US, most estimates of the NAIRU are significantly higher than the current level of unemployment (4.1%). In contrast most estimates of the Australian NAIRU are around 5% (or possibly lower).
That is lower than the current unemployment rate which has been stuck around 5.5% in recent times. In addition, Australia’s labour underutilisation rate is nearer 14% and hence there is some more slack in the labour market than is implied by purely focussing on the unemployment rate. That said, underutilisation in now falling, and usually declines when firms report rising difficulty finding suitable labour.
Our wages model (above) uses underutilisation of labour (as well as inflationary expectations, productivity and the terms of trade – the latter as a proxy for mining wages). The model supports the RBA’s expectation that wages should begin to increase. The outlook for wages is important not just for its implications for inflation but also its ramifications for private sector consumption.
With increased utility prices consumers are still cautious about discretionary retail spending and there are of course ultimately limits as to how far savings can be run down. Our current forecasts see the broader economy still growing at around 2.9% in 2018 and 2.8% in 2019. While we will review these forecasts after next week’s national accounts and the February Monthly NAB Business Survey, our general view is that better business investment and infrastructure spending will offset a still cautious consumer (with delayed LNG exports also helping in 2018).
That said, we remain a little more cautious on the consumption outlook than the RBA in 2019. The RBA comments on the housing market (and financial stability) seem more relaxed recently given the success of APRA in slowing investor credit and house prices- especially in Sydney - however that too will do little to encourage consumption. Based on current data, August 2018 (our previous forecast start point for rate hikes) now appears too soon for the RBA to make a start despite the better global picture, which will see other central banks tighten further.
Finally while price competition (especially online retailing) will keep inflation relatively low for some time, our judgement remains that by late 2018 the RBA will feel sufficiently relaxed on the domestic fundamentals to cautiously start withdrawing the stimulatory policy stance it is currently running. Again however, the data flow will be critical with key determinants including: the strength of wages and consumer spending, unemployment and obviously core inflation. For 2019 we still have another two rate rises but well spread (May and November).
Alan Oster is group chief economist, National Australia Bank, and can be contacted <a href="https://business.nab.com.au/author/alan-oster/">here</a>.
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jrobinson-rf4aSBido9

NAB drops cash rate predictions from two hikes to just one for 2018

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Fraud at Aussie Home Loans will be examined by the banking royal commission’s first public hearing later this month.
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The financial services royal commission is targeting lenders over alleged cases of home loan fraud, along with unsuitable credit card limit increases and their car financing practices.
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The big four banks will all feature prominently in the inquiry's first round of public hearings focusing on inappropriate or unsuitable lending in home loans.
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The commission's target will be "fraudulent brokers and broker arrangements" at Aussie Home Loans.
It will look at the Commonwealth Bank's "accreditation of brokers and broker arrangements".
It will look at NAB's "Introducer Program and fraudulent loan applications".
The Introducer Program was rewarding "introducers" who successfully referred people to the bank for a loan, despite many of the applications being submitted with false information including doctored payslips. 
The bank issued 2300 home loans, which mainly went to foreign buyers of Australian property sold via "introducers."
Twenty bankers were caught breaching lending policies.
The hearings will be held in Melbourne from March 13 until March 23.
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NAB and Aussie Home Loans fraud to be examined by banking royal commision

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Overall sentiment around commercial property (measured by the NAB Commercial Property Index) moderated a little in Q4 (down 1 to +17) but is still well above the long-term average (+2). 
NAB Group chief economist Alan Oster said positive sentiment likely reflected a steady economy, healthy employment growth and strong business conditions.
CBD Hotels out-performed all other sectors, while retail sentiment fell quite sharply and turned negative for the first time since mid-2014.
Industrial sentiment also lifted, amid continued reports of strong warehousing and logistics activity linked to growth in online retail (including Amazon) and e-commerce. 
Office has eased but is still out-performing.
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“Not surprisingly, NAB’s Business Survey also showed retail was the only industry sector reporting negative business conditions” said Mr Oster. 
By state, sentiment was broadly unchanged and strongest in NSW (+33 points), followed by VIC (+20) where it softened somewhat but was still relatively solid. 
A weaker outcome was also reported in WA (-44) where the ongoing transition from the mining investment boom continued to weigh on both economic growth and local commercial property markets. 
Overall confidence levels fell to their lowest levels in 2 years and fell in all sectors - except CBD Hotels.
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“It fell most in Retail, which is not surprising given NAB’s own outlook for wages suggests that any improvement in consumer spending will be slow, especially if wealth effects have an impact as house prices ease” said Mr Oster. 
Property experts in all states were less confident about overall commercial property markets in the next 1-2 years. NSW is still the most upbeat state, and WA and SA/NT the least confident (and negative).
 
The survey also indicated that property developers were more hesitant about entering the market in Q4, perhaps reflecting concerns about over-supply in some segments such as high density apartments. 
Australia wide, the number developers intending to start new building works in the next 6 months fell to 47% in Q4 below its long-term average (51%). 
“Property experts are also telling us that debt and equity funding is still difficult to obtain and most don’t expect any improvement in their funding conditions any time soon” said Mr Oster. 
About 300 panellists participated in the Q4 2017 Survey. 
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Retail sentiment falls sharply as sentiment in commercial property moderates: NAB 

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Australian housing market sentiment was unchanged in the final quarter of 2017 but confidence levels softened, says NAB.
The NAB Residential Property Index had sentiment towards the residential property market remaining positive in most states.
“Trends have however been mixed in recent quarters and the latest survey showed a clear shift in momentum from the key eastern states towards the rest of the country” NAB chief economist Alan Oster said.
Sentiment jumped sharply in SA/NT to lead the country as expectations around house prices and rents edged up. WA also reported its strongest read since early-2014 but still negative.
In the key Eastern states, sentiment fell sharply in Victoria from very high levels. In NSW, the slowdown in dwelling prices appears to be having a much bigger impact with sentiment falling further to its lowest level in 2 years. Queensland was largely unchanged.
Confidence levels (based on forward expectations for prices and rents) also turned down, led by NSW and Victoria, with SA/NT the big improver.
“This improvement mirrors recent findings in our own business survey which shows SA also reporting above average business conditions and strong confidence” said Mr Oster.
Average survey expectations for national house prices over the next 1-2 years were pared back in all states except SA/NT. NSW is the only state where property experts expect prices to fall - and for two years.
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First home buyers (especially those buying for owner occupation) continued to raise their profile in new and established housing markets in the December quarter, with their share of total demand reaching new survey highs. Overall, they accounted for almost 2 in 5 sales in new housing markets and around 1 in 3 in established markets.
The share of foreign buyers in Australian housing markets however continued to fall in Q4, dropping to a 6-year low 8.4% in new property markets and a 5-year low 5.5% in the established housing market.
“Clearly, the efforts of policymakers both domestic and offshore to stem the tide of foreign capital entering Australian property markets are bearing fruit” said Mr Oster.
NAB’s assessment of the housing market direction for 2018 remains largely unchanged, although the degree of moderation has been ramped up considerably - mainly driven by revisions to Sydney prices, where recent price trends have been most concerning and prudential measures are likely to have the biggest impact.
House prices are forecast to increase by only 0.7% in 2018 (previously 3.4%), with growth remaining subdued at 0.8% in 2019.
The apartment market is expected to underperform, reflecting large additions to the apartment stock and a soft outlook for foreign demand. Unit prices are forecast to fall 0.9% in 2018 (previously +0.5%), and decline another 1.8% in 2019.
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“By capital city, house price growth is forecast to be solid in Melbourne and Hobart, followed by Brisbane and Adelaide. Perth is expected to stabilise, marking the beginning of a gradual turnaround for the market, while we expect to see a fall in Sydney prices for the first time since 2011” said Mr Oster.
Most cities are expected to remain muted, if not ease further, in 2019. Unit prices are expected to fall in Brisbane and Sydney over 2018, while Melbourne will join the fold in 2019 as new supply further dampens the market. 
“Naturally, any additional changes to government or prudential policy to address affordability or financial stability concerns are likely to have an impact on these forecasts” said Mr Oster.
About 300 property professionals participated in the Q4 2017 survey.
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Sydney only capital with predicted house price falls over next two years: NAB

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National Australia Bank Limited has refunded $1.7 million to 966 home loan customers after it failed to properly set up mortgage offset accounts.
Following customer complaints, NAB conducted an internal review which found that between April 2010 and August 2017 it had not linked some offset accounts to broker originated loans.
It resulted in those customers overpaying interest on their home loan.
NAB has refunded affected customers so that they are only charged interest that would have been payable had the mortgage offset account been properly linked from the commencement of the home loan.
'Consumers should be confident that when they sign up for a home loan they are receiving all of the benefits that are being promoted,' Acting ASIC Chair Peter Kell said.
'Where there are errors there should be timely and appropriate action to ensure that consumers are not any worse off as a result of the mistake.'
NAB reported the issue to ASIC. NAB has also engaged PwC to review the remediation approach and to ensure NAB's compliance systems will prevent a similar error from occurring in future.
NAB has commenced contacting and refunding affected customers. Customers who have any questions about their accounts should contact NAB on 1800 152 015.
<h2>Background</h2>
An offset account is a savings or transaction account that is linked to a home loan account. Any money in the offset account reduces the amount of interest payable on the linked home loan. For example, if the outstanding balance on the home loan is $300,000 and there are savings of $50,000 in the offset account, then interest is only payable on the difference ($250,000).
In this case, NAB failed to link some offset accounts to home loan accounts, which meant that money held in those offset accounts did not reduce the interest payable on the home loan accounts. As a result, consumers paid more in interest than was required.
NAB also conducted a broader investigation which found that the issue only applies to broker originated loans.
NAB will also remediate customers who had an offset account during the relevant period but had repaid their home loan before 2017.
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NAB refunds home borrowers after mortgage offset system failure

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National Australia Bank (NAB) has sacked 20 bankers and disciplined another 32 for selling home loans to customers whose eligibility may have been in question.
NAB said in a media release it had “commenced a remediation program for some of its customers, after a review identified their home loan may not have been established in accordance with NAB’s policies”.
Around 2,300 home loans since 2013 have been identified as submitted without accurate customer information and/or documentation, it added.
The bank became aware of the matter in October 2015, and advised ASIC in December 2015 after an initial high-level review. 
“What occurred was unacceptable. We have investigated this matter thoroughly, and, as we have always said, whenever we find issues we will investigate them, fix them, and hold people to account – and we did,” said Andrew Hagger, NAB’s chief customer officer, Consumer Banking and Wealth.
Following the investigation, 20 bankers in New South Wales and Victoria have been sacked while another 32 bankers had “consequences applied” including pay cuts.
Many of the customers who took the loans in question are from overseas and NAB has has commenced writing to them asking them to participate in a detailed review of their loan, which may include verification of documents submitted at the time of their home loan application. 
It said affected customers may be offered compensation as appropriate.
NAB said it is working with ASIC to ensure the remediation program provides fair outcomes for customers. 
“The remediation program has been designed with reference to the methodology applied by the Financial Ombudsman Service, and with NAB’s standard approach to compensating customers. NAB will engage an independent expert to undertake regular audits of the remediation program, and will update ASIC every two months on its progress,” said the media release.
“I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here,” Hagger said.
The changes will apply to NAB’s Introducer Program, including enhanced governance and eligibility criteria.
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NAB sacks 20 bankers for incorrect documentation on 2,300 loans

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Ann Sherry, the current head of Carnival Australia, the largest cruise ship operator in Australasia, is joining the NAB board.
Sherry is a former chief executive of Westpac New Zealand.
Sherry spent 12 years in senior roles with NAB's rival before joining the cruise ship operator in 2007.
She is also a non-executive director for Sydney Airport, the Palladium Group and Infrastructure Victoria.
She is on the board of Australian Rugby Union, Tourism &amp; Transport Forum and the Museum of Contemporary Art.
Dr Ken Henry, chair of the NAB, says she brings extensive banking and business skills together with a deep understanding of how to drive the right culture, community engagement and customer focus.
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Ann Sherry sails onto NAB board

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An improvement in market sentiment across most states in the third quarter of 2017 suggests there may still be some legs left in the housing market, with Melbourne showing promising growth while Sydney slowing from the 20 percent rises, according to NAB's latest survey. 
Market conditions continue to vary considerably across locations, with each city seemingly at very different stages of their housing cycles, says NAB Residential Property Survey.  
Annual property price growth across eight capital cities has moderated only marginally to 8.5% y/y in September, down from this year’s high of 11.4% in May. 
“Sydney, Melbourne and Hobart have each continued to see double digit yearly rates of growth, although the momentum is clearly with Melbourne and Hobart, as Sydney is seeing a much more pronounced slowing in recent months - a trend that is reflected in other measure of the market pulse, including auction volumes, clearance rates, and market sentiment,” it says. 
Perth housing prices remain lower from the same time last year, although the decline has slowed since mid-2016, consistent with expectations that the worst of the economy’s post mining boom woes may be over. 
“But despite prices remaining a little more resilient than expected this quarter (outside Sydney), we have maintained our view for more muted market performance going forward, particularly following our revised expectations for RBA rate hikes which have been brought forward to mid-2018 (from H2 2019),” said NAB. 
Hobart has outperformed others in annual growth, with prices rising more than 14% over the year to September. 
In the bigger east coast markets, Melbourne has seen the strongest growth, rising around 12% over the year. Sydney is close behind, at 11% growth, but well below the nearly 20% growth earlier this year. 
For the other capital cities, the Brisbane and Adelaide markets are seeing more modest gains, which are more in keeping with subdued increases in household income, while Darwin is the only other major city besides Perth to see declines over the past year, NAB said.
<a href="https://www.propertyobserver.com.au/images/2017/10/16/NABHousing.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/16/NABHousing.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/16/NABUnits.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/16/NABUnits.png" alt="">
Detached house prices have generally performed better across most markets. In many cases that simply reflects the land component of the property price, however, the apartment segment in some markets have also come under pressure from supply-side concerns, such as Brisbane, where reports of settlement issues have become common. 
Melbourne has often been cited as a market with apartment oversupply risk as well, however, solid population growth and an overall buoyant housing market has helped to underpin near double digit growth in unit prices - similar observations can also be made for Sydney, said NAB.
“We have long anticipated a definitive shift to more moderate market conditions, brought about by a combination of factors (which vary across markets) including deteriorating affordability, rising supply (primarily apartments) and tighter credit conditions following the macro prudential response to financial stability concerns (mainly targeted at investors). 
“While we are yet to see clear evidence of that, we continue to hold this view - although recent price trends suggest the timing of the shift may vary somewhat across markets. Additionally, we anticipate an even higher degree of uncertainty around the price outlook than usual given the relatively unchartered waters of macro prudential intervention,” the note said.
It added that regulatory intervention are often thought to have their greatest (dampening) impact on the market early on, before losing their potency over time - making the seemingly divergent trends between the Sydney and Melbourne markets at present all the more perplexing. 
“This could suggest some upside risk to our outlook should prudential policy lose potency, helping Sydney regain some of its previous price momentum. Foreign demand is another consideration that is difficult to ascertain.”
The survey noted the impact of policy to curb foreign capital entering the Australian property market.
It said that there were a number of positive elements that should support the market enough to prevent a severe adjustment in prices (assuming important factors such as the economic outlook play out largely as expected). 
Mortgage rates remain near record lows (despite a tightening in credit conditions earlier this year), and some lenders appear to be taking their foot off the brake again more recently - according to RBA data the discounted variable mortgage rate has returned to its previous low. 
That is helping to keep mortgage interest payments well down on previous peaks (as a share of disposable income), despite disappointing growth in incomes. 
Meanwhile, the housing supply-demand balance remains quite favourable, with most cities (excluding Perth and Darwin) seeing rental vacancy rates in undersupplied territory (below 3%), consistent with NAB estimates that show a high degree of pent-up demand for housing in many states (especially NSW and Victoria) - population growth in Victoria has been particularly strong, and is expected to remain elevated. 
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