<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Westpac

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<p>To date Westpac has issued public forecasts for the outlook for growth and financial markets to March 2020.</p>
<p>These forecasts are incorporated in the August Market Outlook publication.</p>
<p>We are now extending those forecasts to end 2020.</p>
<p>Last year around this time we surprised markets by forecasting no change in the RBA cash rate out to end 2019. At the time markets were priced for at least three rate hikes (25 basis points per move) and the overwhelming majority of forecasters were anticipating the rate hike cycle to begin in 2018.</p>
<p>Markets have now partly moved into line with our view with only around a 50% probability of one rate hike by the end of 2019. Furthermore, 65% of forecasters in the Bloomberg survey are still expecting the cycle to begin by the third quarter of 2019.</p>
<p>Our view is that the cash rate is likely to remain on hold not only through 2018 and 2019 but also 2020.</p>
<p>Some may argue that we are unrealistically forecasting that Australia will completely miss the global rate hike cycle if rates remain on hold for such an extended period.</p>
<p>We differ from that view arguing that financial conditions are affected by more forces than just the RBA cash rate.</p>
<p>Through 2017 and 2018 we are already observing tightening conditions in the absence of RBA rate hikes.</p>
<p>This tightening is emanating from heightened macroprudential policies from the banking regulator APRA and the rise in wholesale funding costs for banks and corporates.</p>
<p>New lending to housing investors has fallen by 25% over the last year; housing credit growth is likely to slow from 6.5% in the year to September 2017 to 4% in 2018/19 and 2019/20. The bank bill rate has “settled” at around 25 basis points above those levels, which prevailed in previous years and is priced in markets to remain there for at least the next year or so.</p>
<p>As a direct reflection of that tightening in financial conditions we are now seeing housing markets weakening with outright price falls in both Sydney and Melbourne.<br>These price corrections look set to be sustained for at least the remainder of 2018 and 2019 with soggy markets likely prevailing through 2020.</p>
<p>Housing markets typically recover when there is an increase in new buyers in the market. That increase can be attributed to a boost in affordability or a rise in confidence.<br>In previous cycles affordability has been boosted by multiple rate cuts from the Reserve Bank; lower prices; and rising incomes.</p>
<p>In this cycle the Reserve Bank has made it clear that short of a major global financial shock (most likely emanating from China) or a major collapse in the local housing market, it will resist cutting the cash rate.</p>
<p>Neither of those scenarios figure in our central case.</p>
<p>Furthermore, we do not envisage a marked lift in income growth over the forecast period. Accordingly the “responsibility” for the restoration of affordability in the two major housing markets will accrue to prices. So an extended period of price weakness is required before we return to levels of affordability that will attract new buyers and stabilise the markets.</p>
<p><em>Bill Evans is the Chief Economist for Westpac</em></p>
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Westpac expects RBA cash rate to remain on hold until 2021: Bill Evans

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<p>The Westpac building in historic Parramatta as been sold.</p>
<p>The <a href="https://www.commercialrealestate.com.au/property/264-270-church-street-parramatta-nsw-2150-2014154192" target="_blank">Church Street </a> premises, comprising 660 square metres, sold for $14 million at a yield of 4.3 per cent.</p>
<p>It was sold through Khoury &amp; Partners, Parramatta to UPM Pacific, directed by Chinese investors from Knoxfield in Melbourne.</p>
<p>Last time it sold was in 2012 for $7.1 million, an almost 100% increase in six years for the heritage building (pictured above). The 2012 price represented a net yield of 7.5 per cent, with income of $536,815 a year.</p>
<p>Westpac sold it in 2000 for $3.03 million, with little growth during its next ownership, selling at $3 million in 2007.</p>
<p>Located at 264-270 Church Street, the property was originally offered fully leased to Westpac until 2015, with two further five-year options.</p>
<p>The building, totalling 1275 square metres, is on one of the suburb's busiest retail corners.</p>
<p>Agents through the years have suggested the listing was an A-grade bank investments.</p>
<p>The site has been occupied as a bank since 1874.</p>
<p>Earlier this year it was reported Westpac Bank extended its long-term 506sq m commercial lease with the new deal due to commence in March 2020.</p>
<p>The gross annual rent for the property is $1000 a square metre for seven years with options, and incentives.</p>
<p>Khoury &amp; Partners' Jon Race and Anthony Khoury executed the deal.</p>
<p>Banks have been somewhat difficult propositions for landlords in recent times across the country.</p>
<p>However a Bayswater retail property in Perth could revisit its banking roots, after being sold under the hammer earlier this month to a local community bank franchise.</p>
<p>Originally constructed as a banking chamber in 1975, the premises were sold off by the Bank of NSW, aka Westpac,, in 1997 at $210,000.</p>
<p>The 83 Whatley Crescent property was purchased by Bayswater Community Financial Services Limited.</p>
<p>It was bought at auction for $1.06 million.</p>
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j.ballantyne1990-6AQqhLzZaK

Westpac Parramatta premises sell for $14 million

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<p><span>EXPERT OBSERVER</span></p>
<p><span>Markets are now broadly pricing in Westpac’s view on the outlook for the RBA cash rate with only around a 50% chance of a rate hike by the end of 2019. That is in stark contrast to a year ago when our call that rates would remain on hold in 2018 and 2019 was well out of market with markets anticipating around 75 basis points of tightening by the end of 2019.</span></p>
<p>A weakening housing market; soft inflation and wages growth; an uncertain consumer and pressures on funding have all conspired to cool markets’ expectations. That key dynamic around an uncertain consumer facing constraints on income growth with a falling savings rate always stood out as a key constraint on the ability of the household sector to lift spending in the way anticipated by the markets.</p>
<p>While markets have moved largely to embrace our view, the Reserve Bank still expects to be raising rates over the course of 2018 and 2019. I think that is apparent in their ongoing above trend growth forecasts for 2018 and 2019. But, as we have argued before, the Bank does not have a perfect track record with its forecasts (as none of us in the economics community do) and it will react to any differences between its forecasts and “reality” in a timely fashion.</p>
<p>On the other hand our forecasts for the US Federal Funds rate have been consistently above market expectations. Our analysis of the current market pricing is for around 65 basis points of further tightening through 2018 and 2019. We have expected a total of 75 basis points over that period with one 25 bps hike in September, followed by a pause, and then 25 bps hikes in March and June with the rate peaking at 2.625% in mid–2019.</p>
<p>We have expected that signs of the US economy slowing into the second half of 2019 (partly under the weight of a sharp slowdown in government spending) would see the FED curtailing its tightening cycle in anticipation of eventually cutting rates from 2021.</p>
<p>Under that scenario we had been arguing for a weakening AUD/USD which had subsequently peaked around 0.81 in late January this year.</p>
<p>Under our relative rate profile the AUD/USD cash rate differential would sink to an unprecedented –112.5 basis points by June 2019 (previous mark in the post stagflation history was –50 basis points in the late 1990s).</p>
<p>That was likely to take a heavy toll on the AUD/USD with our target being 0.72 by next June.</p>
<p>That sum of 75 basis points of hikes from the FED was still slightly above market expectations but we now believe we need to be even more bold on the FED forecasts.<br>Trends in core inflation; wages; and employment are increasingly casting doubt on a FED pause between September and March.</p>
<p>On a six month annualised basis, the core PCE is now running at 2.3% (to May) and the Employment Cost Index is rising at 2.9% (to March). This pace is somewhat faster than we had expected providing the FED with ample justification for not pausing. In that regard we note that the FED has emphasised the symmetrical nature of its inflation objective and therefore not indicating any immediate concern that the momentum in the core PCE is running above the 2% target. As such, we are still expecting the gradual (3 month intervals) approach to the tightening cycle.</p>
<p><em>Bill Evans is economic spokesman for Westpac and is head of economic research</em></p>
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The latest outlook from Westpac's interest rate whisperer: Bill Evans

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<div>
<p>Westpac will stop new loan offers to self-managed superannuation funds for investing in property.</p>
<p>The nation's second largest mortgage lender, and its subsidiaries Bank of Melbourne, St George Bank and BankSA, will withdraw from lending to small super funds at the end of July.</p>
<p>It follows a review of funds' prospects and its exposure to the sector.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4105" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">The move has shocked mortgage brokers and financial advisers, the Australian Financial Review reported.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4105" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">All lenders have been tightening their lending to self-managed funds, in response to tightening regulatory interventions, tougher investment and property markets and the shift from investment to principal and investment loan products.</p>
</div>
<div>
<div id="article-inline-ad">"We continually review our products and services to ensure they meet the requirements of our customers," a Westpac spokesman said.</div>
</div>
<div>
<p>"In order to simplify and streamline our self-managed super fund products, we will be withdrawing from sale our SMSF home loan product and business lending to SMSFs, effective Tuesday 31 July 2018."</p>
<p data-gtm-vis-first-on-screen-7770372_137="18141" data-gtm-vis-total-visible-time-7770372_137="1900">The bank advised continue to service customers with existing loans through switching loans and extending loan maturity. </p>
</div>
<div>
<p>More than 600,000 investors have more than $700 billion invested in SMSFs, with many self-employeds also investing in their work places via their business factories, warehouses or consulting rooms.</p>
<p>A recent ASIC review found 90 per cent of funds failed to comply with the "best interests" test and other legal obligations.</p>
</div>
<div>
<p>"The strategy of gearing through an SMSF to invest in property, which is being actively promoted by 'property one-stop shops', is high risk," the ASIC report noted.</p>
</div>
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Westpac set to stop property loans for SMSFs

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<div>EXPERT OBSERVER</div>
<div> </div>
<div>As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 1.5% at its July policy meeting. </div>
<div> </div>
<div>The Governor’s decision statement was a little less positive on the global front, and acknowledged uncertainty around the rise in Australia’s short term wholesale interest rates, but retained the core view of growth averaging a bit above 3% a year and an eventual lift in inflation.</div>
<div> </div>
<div>The closing paragraph of the statement was unchanged, retaining the key line that, “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”</div>
<div> </div>
<div>Commentary on the global economy was a little more mixed.</div>
<div> </div>
<div>Last month’s assessment that “The global economy has strengthened over the past year” was replaced with “The global economic expansion is continuing” – suggesting the pace is no longer accelerating.</div>
<div> </div>
<div>The picture is still broadly positive although uncertainties around trade policy and strains in a few emerging markets were again noted.</div>
<div> </div>
<div>The Governor’s comments on short term interest rates were amended as expected.</div>
<div> </div>
<div>Whereas last month the rise in Australian short term rates was ascribed to conditions in the US, this month’s statement acknowledges it is now only partly due to developments in the US with “other factors at work as well” and that “it remains to be seen the extent to which these factors persist”.</div>
<div> </div>
<div>The statement clearly needed to comment on this issue but has done so in a way that reveals very little about the Board’s thinking.</div>
<div> </div>
<div>If anything, the wording, position of the comment in the statement, and other comments about wider financial conditions (“Australian dollar has depreciated a little”; “the average mortgage interest rates on outstanding loans has been declining”) imply it is not overly concerned (at this stage).</div>
<div> </div>
<div>The local data flow continues to be in line with the RBA’s growth view, the strong March quarter GDP result and continued pick up in non-mining business investment noted, as well as the strength in public infrastructure.</div>
<div> </div>
<div>Households are again cited as a source of uncertainty.</div>
<div> </div>
<div>The Governor’s statement was more forthright about prospects for jobs and wages growth, asserting up front that “the outlook for the labour market remains positive”.</div>
<div> </div>
<div>That compares to the more nuanced, and seemingly tentative, discussion in the June decision statement although the observations in both are broadly the same (“forward looking indicators continue to point to solid growth in employment”; “unemployment steady at around 5½% for much of the past year”; “wages growth remains low” but “appears to have troughed”).</div>
<div> </div>
<div>The wording around skill shortages was a little firmer ("increasing reports ... in some areas").</div>
<div> </div>
<div>There was a notable, but secondary, shift in the language about the exchange rate with the July statement dropping the comment that “an appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.”</div>
<div> </div>
<div>This line has been included in some shape or form in every Governor’s statement since March 2016. The implication is that the Bank is less wary of a rising Australian dollar disrupting the outlook with the currency at 74c vs 80c at the start of the year.</div>
<div> </div>
<div>Notably the comment was first introduced in the context of the economy’s wider transition through the wind down in the mining investment boom, a transition the RBA may now view as largely complete.</div>
<div> </div>
<div>On housing the Governor’s statement notes prices are declining in both the Sydney and Melbourne markets but with national measures "little changed" over the last six months.</div>
<div> </div>
<div>APRA’s supervisory measures are again seen as having helped contain the build-up of risk.</div>
<div> </div>
<div>The Governor seems a little less concerned about a further tightening of lending standards by banks, which is viewed as “possible” and set against the observation that average mortgage rates on outstanding loans have declined.</div>
<div> </div>
<div>Again, this remains a 'watch this space' issue.</div>
<div><strong> </strong></div>
<div>Concluding, while there were again several points of interest, the July decision statement showed little substantive change.</div>
<div> </div>
<div>The RBA still looks to be firmly on hold and prepared for a long wait.</div>
<div> </div>
<div>The minutes should reveal more about the Board’s deliberations, the discussion of short term wholesale interest rates will be of particular interest as well as the risks around a further tightening in lending standards.</div>
<div> </div>
<div>However, there’s unlikely to be any shift in rhetoric from the RBA any time soon.</div>
<div> </div>
<div>We at Westpac confirm our long held view that the official cash rate will remain unchanged throughout 2018 and 2019.</div>
<div> </div>
<div><em>Matthew Hassan is a senior economist with Westpac</em></div>
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Matthew_Hassan-HHWHptmrw4

RBA Governor foresees further tightening of lending standards by banks: Matthew Hassan

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<p>EXPERT OBSERVER</p>
<p>Since the housing market’s September peak, the 2% slip in national prices has surpassed the minor correction in 2015-16 that marred the otherwise multi-year upswing since 2012.  <br><br>Unsurprisingly, Australia’s long-treasured dinner party conversation topic is starting to generate more nervous chatter.  <br><br>Firstly, the good news: the rate of decline has moderated a little in the last three months.</p>
<p>The bad?</p>
<p>Buyer sentiment may be showing tentative signs of levelling out but is still not particularly promising, turnover remains near record lows and auction clearance rates are again falling in Sydney and Melbourne.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank">Click here to enlarge.</a></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/6/19/ride.jpg" alt=""></a><br><br>If it’s any comfort, it’s worth remembering the 2% national decline from the peak remains shallow by historical standards and the declines are narrowly based.</p>
<p>With Sydney leading the decline with a 4.5% fall from the peak, it looks similar to the mid–2000s when the Sydney market experienced a downturn that mostly bypassed other markets, rather than the broader corrections seen during prior major interest rate tightening cycles, such as the mid-1990s.<a href="https://www.propertyobserver.com.au/images/2018/6/19/ride.jpg" target="_blank"></a></p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-australian-dwelling-prices.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-australian-dwelling-prices.png"></p>
<p>Breaking it down further based on our preferred basis – the CoreLogic hedonic series – shows that a third of all properties are recording annual price declines, with just under 6% recording falls greater than 5%.As our May <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2018/May/WestpacHousingPulseMay2018.pdf" target="_blank" data-s-object-id="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/australia/2018/may/westpachousingpu_1">Housing Pulse</a> report shows, these falls compare to the more substantial house price corrections in 1994–96, 2004, 2008–09 and 2010–12 when more than half of all properties recorded annual price declines.<br><br>Conditions across the country of course vary widely.<br><br>In NSW, the largest state economy where prices rose the strongest in the recent boom years, slightly more than 25% of properties are now experiencing falls compared to none six months ago, representing the biggest rise in the incidence of price declines since September. What bears watching is whether the price falls spread beyond the middle and “top tier” houses, given several other Sydney segments are on the cusp of declines.<br><br>Victoria is performing better. Only one segment – Melbourne “top tier” houses – are recording declines, accounting for 12% of all properties in the state.</p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-share-of-dwellings-by-price.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-share-of-dwellings-by-price.png"></p>
<p><br>Although not driving the national correction, the mining states are still doing it relatively tough. Nearly 40% of Queensland properties are seeing annual price falls, while in Western Australia the entire state continues to suffer price declines. However, WA’s tentative housing recovery out of the state’s broader recession in recent years looks to be coming through with price slippage moderating and turnover finally lifting.<br><br>Elsewhere, trends are mixed as the rising Tasmanian market experiences virtually no housing segments recording price falls and the South Australian market recording a lift in the incidence of price declines since 2017.<br><br>All this feeds into our view that the housing correction is stabilising but susceptible to deteriorating. One thing to watch closely will be the impact of the banking regulator’s prudential policy measures, given the latest guidance points to some further “micro–prudential” tightening in credit conditions in coming months even as some “macro prudential” limits on lending to investors are removed.</p>
<p>Click here <a href="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-macro-prudential-targets.png" target="_blank">to enlarge.</a></p>
<p><img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2018/06/wbc-news-graph-macro-prudential-targets.png"></p>
<p><br>Also, the Reserve Bank estimates that $120 billion of interest only loans are set to roll over to principle and interest terms each year for the next three years. While the RBA suggests this should be a reasonably comfortably transition, there’s the risk of a further weakening in housing markets if it’s not.<br><br>More generally, a thin market with low levels of turnover and persistent price slippage is likely to be more susceptible to shocks, buyer sentiment may have improved on a year ago but a loss of confidence from here would be a cause for concern.<br><br>The chances of discussion about the housing market dying down at the dinner table and everywhere else any time soon appear very low.<br><br><em><strong>Matthew Hassan</strong> is a senior economist at Westpac.</em></p>
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National house price drop surpasses 2012 correction: Westpac's Matthew Hassan

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<p>EXPERT OBSERVATION</p>
<p>Westpac's Andrew Hanlan has cited two key events this week, the Central Bank forum being hosted by the ECB and in Australia the RBA minutes.</p>
<p><iframe src="https://player.vimeo.com/video/275542798" frameborder="0" width="420" height="350"></iframe></p>
<p>Real GDP grew by 1.0% in the March quarter, lifting annual growth to 3.1% - an above trend outcome, with trend judged to be 2.7%. Non-farm GDP grew by 3.6% over the year, the strongest annual outcome since 2012. These results bring output growth more into line with that for employment, which increased by 3.5% over the year.</p>
<p class="Bodytextspacebefore"><img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/JuneRealGDOGrowth.jpg" alt="Ralk" title="GSP"></p>
<p class="Bodytextspacebefore">Economic conditions have been supported by a combination of global and domestic forces, leading to conditions becoming more synchronised across the state economies, namely:</p>
<ol>
<li>The global backdrop is more favourable. World growth accelerated in 2017 to 3.8%, up from 3.2%, the strongest pace since 2011. We expect world growth to hold around this 3.8% pace in 2018, supported by the US. However, conditions in China are likely to moderate.</li>
<li>Commodity prices are up off the lows of late 2015, improving cash flows for miners and boosting government tax revenues. Going forward, we expect commodity prices to moderate as China slows and supply expands.</li>
<li>The mining investment drag is greatly diminished, albeit not quite complete.</li>
<li>Non-mining investment is trending higher, led by construction activity, to meet the needs of a fast growing population. Notably, total business investment turned the corner in 2017, up 6%, following four years of decline.</li>
<li>Public demand, a quarter of the economy, grew by a brisk 5.5% over the year, directly adding 1.3ppts to activity, with additional positive spill-over effects. Investment in an upswing (centred on transport infrastructure) and additional resources are being directed to health.</li>
<li>Exports are a growth driver, adding 0.9ppts to activity over the year, with strength in LNG (expanding capacity) and services (albeit current estimates suggest a recent consolidation).</li>
</ol>
<p class="Bodytextnumbered">Weaknesses remain, particularly around the consumer and housing. The consumer is vulnerable at a time of weak wages growth, high debt levels and slipping house prices. The housing sector is cooling as lending conditions tighten, with prices easing back from recent highs. Auction clearance rates in Sydney and Melbourne have slipped further to now be at below average levels.</p>
<p class="Bodytextnumbered"><img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/JuneGDPContrib.jpg" alt="June " title="GDP contr"></p>
<p class="Bodytextnumbered">Consumer spending is choppy (up only 0.3% in the March quarter) and ‘slightly below trend’ (up 2.9% over the year). Even the current pace of consumer spending appears unsustainable over the forecast period – we expect a slowing to 2.5% for 2018 and 2019. Spending has been supported by a drop in the savings rate, declining to 2.1% from 4.0% a year ago, with the scope for a further run-down diminished. In addition, the turnaround in housing price growth, from 11.3%yr nationally a year ago to –1.5%yr currently, could see negative spill-overs for consumer demand, although ‘wealth effect’ boosts look to have been very muted through the price upturn (see p14).</p>
<p class="Bodytextnumbered">Total labour income grew by a robust 5.1% over the past year, but this was largely reliant on a very strong hiring burst that looks to have been temporary. Wages, as measured by average compensation of non-farm employees, grew by only 1.6% over the year, to be flat in real terms. Employment increased by 3.5% in the year to the March quarter 2018, twice population growth, in part a catch-up following a hiring pause around the July 2016 Federal election. Jobs growth has subsequently slowed in 2018, to 1.2% annualised for the initial five months - for the full year we expect an increase of around 1.8%.</p>
<p class="Bodytextnumbered"><img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/JuneHHLabourINc.jpg" alt="JuneHh" title="Labour"></p>
<p class="Bodytextnumbered">As to home building activity, this contracted by 5.0% in 2017, consistent with the decline in dwelling approvals from the historic highs of 2016, largely centred on high rise projects. This downturn has further to run with the contraction accelerating into 2019 after a near-term consolidation early in 2018. Large increases in new supply and a marked slowdown in sales to foreigners are weighing on the outlook for residential building.</p>
<p class="Textspacebefore">In summary, key positives around pubic demand, business construction investment and exports will provide a solid base for overall economic activity However, with weaknesses in consumer spending and housing we expect GDP growth to moderate to 2.7% in the year to December 2018 and then slip to a below trend 2.5% for December 2019.</p>
<p>Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>.</p>
<p><span> </span></p>
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jrobinson-rf4aSBido9

Central banks in focus this week: Westpac video update

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<p>"This week is going to be a big week for markets and for the economy," says Westpac's economist Bill Evans.</p>
<p>He says they "obviously we expect the Reserve Bank to keep interest rates on hold."</p>
<p>But he says there will be some interesting things they will be looking for in the Governor's statement.</p>
<p>The video was uploaded on Monday prior to Tuesday's meeting.</p>
<div style="padding: 56.25% 0 0 0; position: relative;"><iframe style="position: absolute; left: 0; top: 0; width: 100%; height: 100%;" src="https://player.vimeo.com/video/267181321" frameborder="0" width="320" height="240"></iframe></div>
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All eyes on the RBA: Westpac's economic update

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<div>
<p>Westpac Group is set to use three leading global credit agencies to track liar loans to boost its loan scrutiny.</p>
<p>Westpac will advise its borrowers' their credit information will be soon be screened by Equifax, Experian and illion, which is formerly Dunn and Bradstreet Australia.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4438" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">The Australian Financial Review said it will allow Westpac and its subsidiaries, Bank of Melbourne, St George Bank and BankSA to review all debts of the applicants, including drawn lines of credit, rather than just credit inquiries, and any defaults.</p>
<p>Equifax, which is headquartered in the US, claims its collects information on more than 800 million individual consumers and 88 million businesses worldwide.</p>
</div>
<div>The Australian Prudential Regulation Authority and the federal government have been pressing for better credit checking to reduce lenders' exposure to defaults.</div>
<div> </div>
<div>One in five property borrowers are exaggerating their income and nearly half understating their spending, according to recent analysis of loan applications by online property lender Tic:Toc Home Loans.</div>
<div>
<p>The issue of liar loans' flared when investment bank UBS estimated last year about 30 per cent of home loans could be affected.</p>
</div>
<p> </p>
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Westpac moves to thwart property liar loans with international credit checks

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<div class="cq-article-content-paras section">
<p>Westpac is offering discounts of up to 105 basis points for property investment loans.</p>
<p>The latest round of cuts sees Westpac especially targeting first-time home buyers and rentvestors.</p>
<p>Andy Wright, Westpac head of portfolio management for home ownership, said it had reduced fixed rates for first time buyers by 40 basis points for principal and interest repayments.</p>
</div>
<div class="cq-article-content-media section">The bank is also introducing a five-year introductory variable rate for first-time buyers and abolishing establishment and monthly fees.</div>
<div class="cq-article-content-paras section">
<div class="adWrapper"> </div>
<div id="article-inline-ad" class="adWrapper">The five-year investment loan of 4.09 per cent includes a discount of 105 basis points.</div>
</div>
<div class="cq-article-content-paras section">
<p>The "flexi" five-year loan is set at 3.79 per cent, which includes a discount of 80 basis points.</p>
<p data-gtm-vis-first-on-screen-7770372_137="17563" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"These changes are designed to help first time buyers at the start of their home ownership journey and a cut in fees means they can put their savings towards purchases for their new home," Mr Wright told Fairfax Media.</p>
<p>"This offer also extends to 'rentvestor' first-home buyers who are looking to purchase their first property to rent out. We're seeing this trend increase, with many first-home buyers purchasing properties to rent in more affordable areas while choosing to live in close proximity to the city."</p>
</div>
<div class="cq-article-content-media section">The major bank lenders are aggressively reducing key fixed and investor interest-only rates because they have undershot the Australian Prudential Regulation Authority's 30 per cent cap on new lending. </div>
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