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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

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.

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.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

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.

[smartcode_project:default project_id=144441 project_image_fid=370975]

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.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

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.

“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.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“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.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

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.

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.

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.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

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.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

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.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

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.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“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.

“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.”

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.

[smartcode_project_cta:default project_id=144441]

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

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.

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.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

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.

“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.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“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.

“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.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

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.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

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.

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.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

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.

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.

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.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

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.

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.

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.

<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" />

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.”

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.

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.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“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.

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.

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.”

<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" />

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.

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.

“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.

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.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

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.

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.

&nbsp;

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.

<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" />

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.

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.

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.

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.

First look: Aqualand joins St Leonards apartment party

Westpac

Westpac have revised upwards its outlook for Australian dwelling prices.

It had predicted, earlier this year, a 20% increase over 2021 and 2022.&nbsp;

But a stronger than expected surge over the first half of 2021 is now expected to see prices up 18% this year with a further 5% coming next year.

While the duo, Bill Evans, Westpac&#39;s chief economist and Matthew Hassan, its senior economist, see lockdowns as likely to cause some loss of momentum in the third quarter, particularly in the Sydney market, they see a swift rebound with price growth lifting again into year end.

Price growth is expected to slow to 5% in 2022 with most of the increase occurring in the first half.&nbsp;

Prices are then expected to decline 5% in 2023 as stretched affordability in most markets combines with the RBA&rsquo;s first rate hike cycle since 2009.

<a href="/developments/sydney-nsw?source_news_article_id=107113&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_sydneycbd_3.png" width="1200" /></a>

&quot;The upswing that emerged at the start of this year has continued to run ahead of expectations with markets carrying strong momentum into the second half,&quot; they noted.

Prices nationally rose 12.2% over the first six months, an extraordinary 25.6% pace in annualised terms.

The update noted deteriorating affordability is already weighing heavily on buyer sentiment with the &lsquo;time to buy a dwelling&rsquo; index in the Westpac Melbourne Institute Consumer Sentiment Survey is down 25% from its peak last November.&nbsp;

&quot;There are also tentative signs that finance to owner occupiers has peaked.&quot;

They see macro&ndash;prudential tightening as highly likely.

<a href="/developments/melbourne-vic?source_news_article_id=107113&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_melbournecbd_10.jpg" width="1200" /></a>

&quot;The timing is expected to be delayed until around March&ndash;June 2022.&nbsp;

&quot;Measures are expected to be successful and to weigh more heavily on markets where affordability is stretched.&nbsp;

&quot;Price growth is expected to stall in Sydney and Melbourne through the second half of 2022 but maintain some positive momentum in most other markets where affordability is still attractive.&quot;

The combination of rising rates; stretched affordability; and macro&ndash;prudential policies is likely to see prices easing off their highs by an average of around 5% in 2023 with all markets expected to see modest declines, Westpac forecast.

Bill Evans, Westpac's chief economist and Matthew Hassan, its senior economist now see a total gain over the two years of 23% with 18% coming in 2021

jchancellor

Westpac forecast 18% dwelling price rise in 2021 and 5% next year

National multi-unit approvals increased by 36 per cent in the three months to May 2021 to be 25.7 per cent higher than last year.&nbsp;

It was the strongest quarterly result for apartment approvals since 2018, stated HIA economist, Angela Lillicrap.

They were driven by a rise in apartment approvals in Queensland and Western Australia.

<img alt="" height="855" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/approvals_broad.jpg" width="1200" />

Matthew Hassan, the Westpac economist noted high rise approvals, where up 186 percent year on year in Queensland and 105 percent in WA.&nbsp;

In NSW highrise approvals were up 59 percent year on year based on the quarterly data, while it was 42 percent in Victoria.

[smartcode_project:default project_id=7758 project_image_fid=150460]

Hassan noted that high rise approvals were greater than low rise apartment approvals.

NSW lead the low to mid rise apartment growth, up 69 percent, followed by Victoria up 8 percent and Queensland by 4 percent.&nbsp;

[smartcode_project:default project_id=102309 project_image_fid=163979]

Meanwhile detached building approvals fell back in May from the record level set in April but remain elevated according to the Australian Bureau of Statistics release.

Approvals for private sector houses fell across all mainland states: Western Australia (-18%), South Australia (-16.9%), Queensland (-13.8%), Victoria (-5.8%) and New South Wales (-4.6%), in seasonally adjusted terms. 
&nbsp; 
Detached approvals will remain elevated for several more months as approval authorities work through the remaining HomeBuilder projects, stated HIA economist, Angela Lillicrap.

Ryan Felsman, the senior economist at CommSec, noted council approvals to build new homes fell by 7.1 per cent in May after falling by 5.7 per cent in April.&nbsp;

&quot;But approvals are still up 52.7 per cent on the year &ndash; the strongest annual growth rate in 11 years,&quot; Felsman advised.

In May, total house approvals fell by 10.3 per cent (up 53.6 per cent on the year) with apartments up 0.7 per cent (up 51.0 per cent on the year).&nbsp;

Over the past year, 144,827 new houses were approved &ndash; the most for a 12-month period in over 37 years.

AMP Capital cheif economist Shane Oliver noted the decline in building approvals from their peak likely reflects the end of the HomeBuilder subsidy at the end of March, which brought approvals forward.&nbsp;

&quot;However, approvals remain very high, the AIG&rsquo;s June Construction PMI survey continues to point to strong new orders for new houses and the lagged impact of the surge in approvals up until recently points to a significant further rise in dwelling construction activity over the remainder of this year.

&quot;This is good news for continuing economic and jobs recovery.&nbsp;

&quot;Continuing strength in home building against the back drop of the collapse in population growth also holds out the prospect that the property market will move into a situation of underlying oversupply in the next year or so which should ultimately slow the gains in home prices and help improve affordability,&quot; Oliver said.

Multi-unit approvals increased by 36 per cent in the three months to May 2021, the strongest quarterly result since 2018

Apartment approvals see strongest quarterly result since 2018

Westpac now expect more of their recent 20 percent property price rise forecast to occur in 2021.

Westpac economists Bill Evans and Matthew Hassan kept their forecast for a 20 per cent gain in dwelling price forecasts for 2021 and 2022 but shifted it from thinking it would be evenly spread at 10 per cent gains expected in both years.

&ldquo;We now expect more of this rise to come in 2021, retaining the 20 per cent call overall but with a 15 per cent gain in 2021 slowing to 5 per cent in 2022,&rdquo; they said.

The initial forecast came in mid-February.

[smartcode_project:default project_id=27728 project_image_fid=73042]

The duo noted Australia&rsquo;s housing market is &quot;evolving quickly.&quot;

&quot;The strong upswing that emerged late last year has seen price growth run well ahead of expectations over the first few months of the year.

&quot;At the current cracking pace, our forecast 10% lift in prices for 2021 set down in February will be achieved by around mid-June.

&quot;Some moderation is likely, particularly as affordability becomes more stretched for owner occupiers.

&quot;However, a sudden loss of momentum near term looks unlikely, particularly with markets tight, price expectations bullish, investor activity showing signs of picking up and highly stimulatory financial conditions still firmly in place.

[smartcode_project:default project_id=6798]

&quot;Accordingly, we have marked up our near-term forecast for dwelling prices with a 15% gain now expected nationally in 2021.

&quot;This represents a pull-forward of the cumulative 20% rise we had already been forecasting over 2021 and 2022.

They noted the 20% &lsquo;limit&rsquo; reflects two key views: &quot;that deteriorating affordability will become a more binding constraint for owner occupiers as prices rise; and that regulators will intervene in the market in 2022 as investor activity lifts and credit growth reaches uncomfortable levels.&quot;

Westpac now expect more of their 20 percent rise forecast to occur in 2021

Westpac forecasts even stronger 2021 housing price rise

<html><body>Westpac has announced that it will sell its Lender Mortgage Insurance (LMI) business to Arch Capital Group.

The deal will however see Arch becoming Westpac’s exclusive provider of LMI on new mortgage originations for a decade.

The transaction requires antitrust and regulatory approvals from APRA and from the Australian Competition and Consumer Commission.

Arch which has provided reinsurance services to Westpac since 2011.

“Westpac is pleased to be entering into a long-term partnership with Arch as LMI is an important product that helps the group make home ownership more accessible for more Australians,” said Jason Yetton, chief executive, specialist businesses and group strategy at Westpac. 

“The sale continues the simplification of our business and builds on our progress in becoming a simpler, stronger bank focussed on consumer, business, and institutional banking.”

Arch notes the company’s position as the only globally diversified insurer of mortgage credit risk.

Arch has mortgage insurance and reinsurance operations in Bermuda, Europe and the United States.

There are two major LMI providers in Australia, QBE and Genworth.

LMI companies offer significantly different premiums for different types of loans (low doc or normal), types of borrowers (first home buyers or other borrowers), and LVRs (90%, 95% etc) and loan amounts.</body></html>

Westpac has announced that it will sell its Lender Mortgage Insurance (LMI) business to Arch Capital Group by the end of August

Westpac to sell its Lender Mortgage Insurance (LMI) business to Arch Capital Group.

<html><body>
Westpac have followed ANZ and NAB and cut their two and three year fixed mortgage rates for new owner-occupiers.

They now have the lowest two year fixed rate on the market at 1.79 per cent, having chopped 20 basis points from their record-low 1.99 per cent offering.

Westpac's three year rate has seen an 11 basis point cut, now at 1.88 per cent.

The rates are only for owner-occupiers paying principal and interest with an LVR ratio of 70 per cent or less.

The two year investor fixed rates have also been cut by 0.2 per cent.

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RateCity.com.au database shows that 57 lenders now have home loan rates under two per cent, including three of the big four banks.

“Westpac has thrown down the gauntlet to its competitors today proving there’s still heat in the fixed rate market.” RateCity.com.au research director Sally Tindall said.

“While we’re nearing the bottom of the rate cycle, provided the cash rates remains above zero, it’s likely there’ll be more cuts in the weeks to come as banks compete for the record levels of new lending coming through the door.

“Lenders are currently in a strong position to offer low fixed rates, which also have the benefit of locking a customer in for the fixed term.

“Westpac is now offering the lowest 2 year fixed rate, and was already offering the lowest 4-year fixed rate in the market – an unusual position for a big four bank.

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Tindall says home loans at the nation's largest lender, Commonwealth Bank, are starting to look outdated, with just one fixed rate under 2 per cent.

“Westpac group is reserving its sharpest rates for people who own at least 30 per cent of their home.

“Property price rises aren’t just helpful for people planning to sell. If you’ve had your home loan for a few years you might find you have more equity than you think and qualify for one of these low-rate loans."
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RateCity.com.au database shows that 57 lenders now have home loan rates under two per cent, including three of the big four banks.

Westpac offer lowest two-year fixed rate mortgage after cutting home loans

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Expert Observer

The Q4 National Accounts confirmed a brisk rebound in activity.

GDP printed at 3.1%qtr, -1.1%yr.

This was above expectations, market median and Westpac 2.5%.

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As we had flagged, the risks were to the upside – with the expenditure partials having surprised to the high side. That is how it played out.

The key theme, the economy rebounded rapidly through Q3, +3.4%, and Q4, +3.1%, with considerable momentum into 2021.

Consumers and businesses are upbeat, state governments are spending up, the housing market is red hot and the vaccine roll-out is underway.

Success on the health front has permitted the rolling back of most, but not all, covid restrictions. Victoria emerging from a second lock-down boosted activity in Q4 and will do so again in Q1.

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The recovery broadened in Q4:

(1) home building, up 4.1%, following a +1.6% for Q3, the first gains since June 2018, in response to cheap credit and government incentives, and

(2) business investment advanced, up 2.6%, led by equipment spending, +8.1%, in response to the accelerated depreciation allowance. That follows a string of negatives.

Real estate activity (ownership transfer costs) surged a further 15.2%, after a 21.6% rebound in Q3, to be 15.3% higher over the year – with the established housing market booming.

Consumer’s ability and willingness to spend is the key dynamic – certainly the relaxing of covid restrictions provides consumers with more opportunities to spend.

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The household saving ratio spiked to 22% in Q2, on the drop in spending associated with the lock-down and the wave of government income support. The savings rate moderated to 18.7% in Q3 and retraced to 12% in Q4 and will unwind further in 2021.

The critically important point, while there was a tapering of government support in Q4, which saw business profits moderate off a high level, consumers have a sizeable savings buffer to fund a further lift in spending – and that is what they are choosing to do.

The consumer picture was largely as expected with spending posting another strong gain, led by normalising conditions in Victoria, and despite a material drag on incomes from reduced fiscal supports.

Total consumption rose 4.3%qtr to be down just 2.7%yr. Victoria posted a 10.4% gain in the quarter, spending up 2.3%qtr across the other states combined.

The spending detail was a little stronger than expected around vehicles and retail but a touch softer than expected on services.

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Around incomes, wages rose 1.4%qtr with a strong increase in employment and hours worked more than offsetting initial drags from the wind-back in JobKeeper support. However real disposable income – including small business and non wage incomes and net of interest and tax – recorded a sizeable 3.3% fall. The rise in spending was thus funded out of a reduction in new savings, the savings rate falling from 18.7% in Q3 to 12% in Q4

Public demand continues to be a growth driver, up 1.0% in the quarter and a very brisk 6.5% over the year, in part driven by the response to covid.

Net exports were a small negative, -0.1ppt, as imports roared back, +4.9%, to meet the brisk rebound in domestic demand. Inventories, in total, subtracted -0.1ppt.

In other detail, the Expenditure measure of GDP printed at 3.0%, Income at 3.3% and Production at 3.1%.

Andrew Hanlan is a senior economist at Westpac.
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Consumers and businesses are upbeat, state governments are spending up, the housing market is red hot and the vaccine roll-out is underway.

December quarter sees GDP grow 3.1%: Westpac's Andrew Hanlan's insights

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Having previously forecasted four per cent gains in 2021 in September, Westpac economists have lifted their forecast for dwelling prices and are now expecting 10 per cent gains in both 2021 and 2022.

Westpac chief economist Bill Evans and senior economist Matthew Hassan's expectation is the market will flatten in 2023 as rising fixed-term interest rates combine with prudential measures aimed at reining in the associated lift in leverage.

"These headwinds are not expected to emerge until 2022 with prudential measures likely to be timed for the second half of 2022," Evans and Hassan suggest.

The forecast has Perth leading the way in 2021 with 12 per cent gains, followed by Sydney, Brisbane and Adelaide at 10 per cent. Hobart and Melbourne are predicted to see eight per cent gains, with the latter jumping to 10 per cent over 2022.  

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They say the September forecast of four per cent gains in 2021 was "considered bold", given Victoria was still in lock down.

<img alt="" height="824" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/dwelling_forecast_westpac_2021.jpg" width="1200">

"The forecast for 2021 incorporated ongoing COVID-related headwinds – particularly around the end of temporary loan repayment deferrals and the impact of closed international borders on migrant inflows," Evans and Hassan continued.

"These headwinds and uncertainties around the pace of reopening and risks of further virus outbreaks were expected to restrain price gains through the first half of 2021.

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"However, the last four months have seen a faster and stronger than expected turnaround, particularly in markets that will see little or no effects from these headwinds. Even in those that are more exposed, demand is looking materially stronger than expected back in September, suggesting momentum will be better sustained.

Evans and Hassan says the upturn is being supported by record low interest rates; the confident expectation amongst borrowers that these rates will remain low for years to come; ample credit supply; and an improving economic backdrop, as the roll-out of vaccines promises to bring the pandemic to an end and drives a sustained lift in confidence.
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Westpac chief economist Bill Evans and economist Matthew Hassan's expectation is the market will flatten in 2023



Westpac now forecast 20 per cent dwelling price gains over next two years

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EXPERT OBSERVER

The ABS reported a 0.9% lift in the December quarter CPI which was greater than Westpac’s (and the market median) forecast of 0.7%. At two decimal places the CPI lifted 0.86% with the annual pace lifting a touch from 0.7%yr to 0.9%yr.

The core measures were around expectations with the trimmed mean lifting 0.4%qtr (WBC forecast 0.3%/market median 0.4%) while the weighted median gained 0.5%. Excluding the imputed series had little impact on the core measures.

The CPI is still being influenced by government taxes and subsidies which have been pushing and pulling on the data. However, outside of dwelling prices we found little to suggests more broad based inflationary pressures.

The main surprise compared to our forecast was how the surge in housing demand lifting dwelling prices to swamp the benefit of the Home Builders Grants. In many capital cities developers were able to lift prices in excess of the value of the grants, even in Perth and Hobart were the Federal Grant ($25,000) was supplemented by state government grants ($20,000).  

In our preview we had expected that the know rise in childcare would be offset by falling housing costs but rising underlying dwelling prices swamped the discounts. Prices fell in Sydney (-0.3%), Adelaide (-0.5%), Darwin (-2.3%) and Canberra (-0.5%) but lifted in Melbourne (0.9%), Brisbane (2.0%), Perth (2.2%) and Hobart (1.1%). The large rise in Perth and Hobart is somewhat very surprising given the lower level of house prices in those capital cities and the almost doubling of the size of the grants in those cities.

It is also worth noting that rents rose 0.1%, while modest it was stronger than the expected fall -0.3%. Electricity prices fell -7.5% due to a $600 in WA which saw electricity prices fall -66.7% in Perth.  

There was the expected rise in two key components; the 33.7% lift in childcare and the 10.9% rise in tobacco prices.

The ABS informed us earlier of the magnitude of the rise in child care due to the ending of free child care in Victoria. Overall, household equipment and services rose 3.4% (WBC forecast 3.5%). Excluding child care this group would have fallen -0.7%.

Tobacco prices rise every December quarter due to the re-indexing of the excise to the CPI.

Unlike the NZ CPI it was harder to find any broader inflationary pressures from the COVID induced changes in demand. Holiday travel cost did rise bit more than expected but household contents were close to expectations while clothing fell more than expected.

However, dwelling prices are running well ahead of our expectations and even rents have turned positive. These factors can have a meaningful impact on estimates of core inflation, something we will be looking more deeply at for our monthly update.

Justin Smirk is an economist at Westpac.
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The main surprise compared to our forecast was how the surge in housing demand lifting dwelling prices to swamp the benefit of the Home Builders Grants

Q4 CPI above expectations as dwelling prices surge: Westpac

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Westpac is cutting lending to self-managed super funds for residential investment properties, according to the Australian Financial Review.
The bank has cut maximum loan-to-value ratios from 80 to 70% and tightened other lending criteria.
Super fund borrowing has increased from less than $500 million to more than $9 billion, the Australian Taxation Office says over the past five years.
The recent financial system inquiry warned that current growth rates could create a systemic risk in the future, even though total borrowing was small compared to the overall economy.
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jchancellor-FAypfDUnLy

SMSF borrowing gets tougher for Westpac customers

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After interest rate hikes for investors, Westpac has now turned its attention to self-managed superannuation funds with likely changes including halving the maximum interest-only repayment term from 10 years to five.
SMSF property investors will be slugged with tougher rates, policies and processes in the lead up to this weekend's changes to caps on tax concessions being imposed by the federal government, The Australian Financial Review reported.
Westpac subsidiaries Bank of Melbourne, BankSA, St George, are also increasing mortgage rates for interest-only property buyers.
"This will help us meet our regulatory requirements and apply responsible lending practices in assessing a customer's ability to pay," a bank spokesman told the AFR.
Also, for a loan application, there has to be a minimum SMSF balance of $200,000.
"There are no exceptions to this requirement," the bank is warning clients.
SMSF trustees will also have to complete a new statutory declaration stating that customers have sought independent financial and legal advice when applying for an SMSF loan.
There are about 570,000 funds with about $654 billion under management and 1.1 million members, according to the AFR.
Borrowing – or gearing – for property by SMSFs has always been a debated issue because too much exposure to property could be a disaster in the event of a housing market crash.
A 2014 Financial Systems inquiry recommended that SMSF borrowing should cease.
Real property within SMSFs grew from $15 billion in 2003-04 to more than $100 billion by the end of last year, statistics from the Australian Taxation Office show.
Westpac changes, which are expected to be followed by other major lenders, will be imposed as the federal government introduces changes to concessional and non-concessional caps are introduced this Saturday.
That means the use of limited recourse borrowing arrangements will be included in a member's total superannuation and $1.6 million transfer balance cap calculations.
Lenders face higher risk with a limited recourse loan because it is debt in which the creditor has limited claims if a default occurs.
A typical SMSF property investor will pay about 5.85 per cent for a loan, which is about 135 basis points higher than for an investor loan outside a fund.
Over a 25-year term a borrower would make additional repayments of more than $270,000, assuming rates remained constant, according to analysis by Canstar.
Several other lenders have already restricted access to interest-only loans for SMSF by either no longer offering them or imposing strict loan-to-value ratios.
SMSF investors continue to increase exposure to listed trusts and other managed investments, latest analysis by the ATO shows.
For example, more than $207 billion is held in listed trusts compared to about $14 billion in 2012 as the global economy struggled to recover from the global financial crisis.
During that time cash and term deposits have fallen from about $134 billion to $28 billion.
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