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

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Australia posted a 16k increase in employment in January 2018 which records the longest streak of job gains with a 16th consecutive positive print. The month’s increase was very close to the market and Westpac’s expectation for a 15k rise.
However, the composition of employment changes was quite stark with full-time employment down 49.8k and part-time employment up 65.9k. That comes after a strong 2017 for full-time employment growth and the annual growth rate is still an elevated 3.6%.
In the month, hours worked fell 1.4%. The annual rate of change moderated to +0.5% from +3.2% but the series is volatile and this month’s movements were largely due to base effects. If hours worked holds steady in February, the annual pace will lift to +2.1%.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Labour1.jpg" alt="">
 
By state, Queensland posted the highest jobs growth, up 19.7k, maintaining solid momentum but January's lift was driven by gains in part-time employment. On the other hand, a soft month was recorded in NSW (-21.1k) and WA (-8.9k), both coming after some solid gains in December.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Labour3.jpg" alt="">
 
Annually, jobs growth strength has been fairly broad-based across the states, with the mining states recovering and the south-east expanding. Yet, we will watch the pace of jobs growth in Victoria closely with total employment flattening out over recent months after a very strong run up.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/StatesTotal.jpg" alt="">
 
Annual employment growth held steady at a brisk pace of 3.3%. Our Westpac Jobs index is still at a high level but the change in the index has moderated in recent months. Our outlook for employment growth in 2018 is positive with a forecast 2.2% annual rate an above trend pace albeit slower than 2017’s very strong performance. 
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Index.jpg" alt="">
Overall, while January’s update continues the run of positive employment numbers, key questions remain for the labour market.
Firstly, there is uncertainty on how the unemployment rate will change given our solid jobs growth forecast.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/LabourImage1.jpg" alt="">
In January, the unemployment rate fell slightly to 5.5% from 5.6% in December (revised up from 5.5%). This came with a decline in the participation rate to 65.6% from 65.7%.  Looking back over the past year, while the unemployment rate did fall from a peak of 5.9% in February 2017 to the current 5.5%, the drop was more muted than the gain in employment due to a rising participation rate. To examine how far the unemployment rate could continue to fall, we need to assess how far the participation rate could rise.
The first thing to note is that the uplift in the participation rate has been driven mainly by females joining, re-joining, or remaining for longer in the labour force. However it should be noted that this spike occurred alongside a rising male participation rate which had otherwise been in a downtrend. That compares to 2015’s spike in female participation, where the male participation rate held its level rather than increasing. This suggests that the most recent lift in participation rate has a cyclical aspect to it with stronger employment generally attracting more people to the labour force. In addition, subdued wages growth, high household debt and high house prices may be necessitating dual-income households. However, given the outsized gain in female’s participation there is also likely a structural gender dynamic occurring as well.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/GenderST.jpg" alt="">
Converging male and female participation rates have been a long-term trend due to the large social change in women joining the workforce. Yet, the rate of convergence had been flattening out as the generational shift filtered its way through the labour market over time. Between the periods of 2009 and 2014, the female participation rate had remained relatively unchanged at around 58-59%. Perhaps this means that in aggregate, the recent increase in female participation is due to structural reasons outside of the generational shift in behaviour. A look at the type of jobs created over the past year suggests a changing composition of employment may have been a significant factor.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/GenderLong.jpg" alt="">
 
The graphs below show the annual jobs increase in the year to November 2017 (lhs) across different economic sectors broken down by gender. It is ordered by the female share of employment in the individual sector (rhs) with the top graph showing the sectors with the highest proportion of female employees, and the bottom graph the lowest. 
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Sector1.jpg" alt="">
 
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Sector2.jpg" alt="">
 
The striking aspect about the top chart is that the four sectors with the largest proportion of female jobs (health care, education, accommodation &amp; food and retail trade) accounted for 242k of the total 387k jobs created over the year to November 2017 and 202k of those new employees in the sectors were female. That contrasts with the bottom chart where the only standout sector is the construction industry which has a very large male proportion and men accounted for 109k of the net 101k increase. This suggests that the rise in female participation is a reaction to strong employment growth in sectors that typically have a higher proportion of female employment. These service sectors have been key to the transitioning economy and therefore strength is likely to continue. On the other hand, the construction sector accounted for 109k of the total 178k annual increase in male jobs. While the level of homebuilding remains at a high level, supply-demand factors look more balanced and slowing house price growth should restrain housing investment. The uncertainty here is whether similar jobs with transferrable skills will be created in other sectors. Given the large transitional shift in the types of jobs created, we will likely see tightness in the labour market in some pockets before others. That leads onto the second question surrounding the unemployment rate in regards to where the NAIRU sits – the rate that we start to see wage pressures come through.
 
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/Labour4.jpg" alt="">
The RBA’s estimate of the NAIRU is around 5%. Yet, even though the unemployment rate has been approaching 5% over the past year, we are yet to see a reaction in wages. In a speech on Tuesday at the ABE Forecasting Conference, Assistant Governor Economic Ellis mentioned that “we are mindful that, as we approach that figure, there's a risk we find there is more room to come down before wage growth picks up in earnest”.
A possible reason for a lower NAIRU is that there is more slack in the labour market than that indicated by the unemployment rate alone. Indeed, the underemployment rate has held a high level with the last seasonally adjusted estimate at 8.3% in November. <img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/SimonImages/VolumeUnder.jpg" alt="">
 
It is difficult to draw a conclusion on what a high underemployment rate means for overall slack in the labour market. The ABS provides quarterly non-seasonally adjusted data on volume measures of unemployment and underemployment based on the hours of available labour. The data is consistent with the previous headcount measures in terms of directional movement. In terms of quantity, as at November, it shows underemployment at 3.1% and therefore a sizable proportion of the combined 7.2% of underutilised hours. But the readiness of the underemployed pool of labour to be drawn upon is uncertain given that it may require changing jobs rather than going from not employed to employed.
As such, finding the level of NAIRU may only be possible in hindsight - after we start to see wage pressures emerge. With that in mind, next Wednesday’s Wage Price Index data is all the more critical.
 
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jrobinson-rf4aSBido9

January employment increase makes new Australia record

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<a href="http://www.afr.com/business/banking-and-finance/financial-services/westpac-invests-25m-more-in-uno-in-mortgage-broking-play-20180202-h0sehc"></a>Westpac Banking Corp has doubled its $25 million investment on the digital mortgage broker Uno Home Loans.
It has invested another $25 million for the start-up's brand marketing and sales teams which is currently sending two-thirds of its loans to the non-major banks.
Westpac now owns around 81% of Uno, which seeks a 10% share of the broking market over the next 10 years.
Westpac's head of strategy, Gary Thursby, said Uno presents a different way to create opportunities.
Uno, which was established two years ago, is recruiting a new CEO as the Uno founder Vincent Turner moves to a new role of chief innovation officer, leading product development.
Uno does not disclose loan volumes or customer numbers,
Uno has 22 lenders on its panel, including the four majors. 
Westpac loans do not get favourable treatment on the platform, Thursby told Fairfax Media.
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j.ballantyne1990-6AQqhLzZaK

Westpac invests extra $25 million in digital mortgage broker Uno 

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Recent history suggests downside risk to the December quarter CPI but due to forecast bias. Also we note there is no clear relationship between the Australian and NZ CPI.
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As we noted in our preview, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2018/January/er20180126AusCPIQ4Preview.pdf" target="_blank">'Australian Q4 CPI preview'</a> there are clear downside risks to the December quarter CPI.
<h4>Sept Qtr CPI: 0.6%qtr</h4>
<h4>Dec Qtr CPI forecasts; WBC f/c: 0.8%qtr, Mkt f/c: 0.7%qtr, Range: 0.4%qtr to 1.4%qtr</h4>
 <img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Eco_Bulletin_Charts/Slide45.JPG" alt="">
Through the last four quarters Australian forecasters have overestimated the quarterly rise in the CPI by just under 0.2ppts (average of 0.175 at three decimal places). 
It appears that Australian forecasters have been slow to react to the disinflationary pulse that has hit the economy for at least a year now. With a median forecast of 0.7%qtr for the December quarter, there is a clear risk that the CPI will undershoot expectations yet again.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Eco_Bulletin_Charts/Slide48.JPG" alt="">
Westpac has left its quarterly forecast for the CPI at 0.8%qtr as that is the best estimate we can get from the partials we have even when we allow for some further disinflationary pressure in consumer goods space. 
However, in our mind the risks are asymmetric to the downside.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Eco_Bulletin_Charts/Slide47.JPG" alt="">
But what of the New Zealand CPI? Didn’t the December print come in at 0.1%qtr against a median expectation of 0.4%qtr? Doesn’t that highlight a significant downside risk to the Australian CPI?
Our research suggests there is very little correlation in the quarterly change in the NZ CPI and the Australian CPI. Nor is there any correlation between the forecasting errors for the NZ and Australian CPIs.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Eco_Bulletin_Charts/Slide52.JPG" alt="">
So while the ongoing disinflationary pressure in the Australian economy points to a downside risk to both Westpac’s and the market's forecast for the December quarter CPI, we would caution against using the New Zealand CPI as an argument.
Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Downside risk to the December quarter CPI: Westpac's Justin Smirk

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Dwelling approvals continued to surprise to the upside in November, increasing by 11.7% compared to market expectations for a 1.0% decline. 
November’s uplift was driven by a jump in Victorian approvals, up 38% on the back of a 21% rise in October. 
The rest of Australia was relatively flat, down 2.0% in the month following October’s 8.3% drop. 
On an annual basis, dwelling approvals are tracking at a 17.1% pace.
<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/2018/1/10/dwelling%20approvals.jpg" alt="">
 
However, given the series is typically volatile, we prefer to assess the data on a rolling 3 month basis. Under that smoothed measure, approvals were up 3.8% in the month and 11.0% over the year but this is still partly inflated by base effects due to a dip in October 2016. 
Looking at the dwelling type detail, the increase in Victoria was concentrated in private apartment approvals, in particular the high rise component (four or more storey blocks). 
We caution that the high rise series is very volatile, and November’s surge likely reflects a lumpy project pipeline. This raises the risk of a sharp correction lower in apartment approvals in coming months even though Victoria continues to see strong population growth.
Nationwide, private apartment approvals rose 30.6%, mainly due to the aforementioned jump in Victoria but also because of gains in Queensland and WA on a much lower scale. On a rolling 3 month basis, Australian apartment approvals rose 8.8% in November and 21.3% over the year.
<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/2018/1/10/dwelling%20approvals%20type.jpg" alt="">
 
In regards to houses, detached dwellings were down 2% in November and relatively flat in yearly terms, +2.2%. By state, Queensland retraced past gains (-6.7%) but the trend is up over 2017, consistent with a resurgence in population growth. 
Victoria too was down 1.1% though approvals have moved higher through the year. NSW detached dwelling approvals rose 2.6% in the month but are broadly flat over the year. WA continued to trend down, falling 8.7%. 
The value of renovation approvals fell back 3.5% in November after increasing by 24.4% in October to be 17.8% higher in yearly terms. Mining states lifted through the second part of 2017 while Victoria held a high level. 
The value of non-residential building approvals were broadly flat in November and up 35.5% over the year. However, after a choppy previous three months, total monthly approvals are relatively unchanged from April's level. State detail shows that much of the increase from last year is concentrated in Victoria and to a lesser extent NSW. By type, offices have been the main driver but warehouses and 'other' segments have also risen from last year. 
Overall, the jump higher in Victorian high rise approvals raises the risk of a sharp fall in coming months. Yet, the firming trend in Victorian detached dwelling approvals is in line with stronger population growth. Momentum elsewhere in Australia looks to be limited. 
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Australian dwelling approvals surprise higher in November: Westpac

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Westpac says uncertainty around the economic and fiscal outlook is ever present, but the downside risks have diminished somewhat relative to a year ago, with the world economy surprising to the upside.
The comments came ahead of the pending release by the Treasurer of the Federal Government's Mid-Year Economic &amp; Fiscal Outlook (MYEFO) on Monday next week, December 18.
The 2017 half yearly budget update will likely see minimal changes to the economic and fiscal forecasts and projections, Westpac economist Andrew Hanlan suggests.
"That is a welcome change from the experience for much of the post GFC period, when Treasurers so often had to mark down the revenue outlook.
In the May 2017 Budget, the budget deficit was forecast to moderate from $29.4bn, 1.6% of GDP, in 2017/18 to be approaching balance in 2019/20 and then edge into surplus in 2020/21, a forecast $7.4bn, 0.4% of GDP. 
Economic growth in 2017/18, in nominal terms, is set to exceed the Budget forecast, at a likely 4.5% vs an expected 4.0%. The mix of activity differs, with consumer spending softer, offset by investment by businesses and government.
Commodity prices over past months proved to be more resilient than anticipated, boosting national income. More recently, commodity prices have moderated, suggesting that the MYEFO commodity price assumptions for the out years will be largely as in the Budget.
The MYEFO profile for nominal GDP growth for the three years from 2018/19 is expected to be: 3.75% (downgraded from 4.00%); 4.50% (unchanged); and 4.75% (unchanged). The downgrade to 2018/19 reflects the risk that real GDP growth is revised to 2.75% from 3.0%, incorporating a weaker starting position for the household sector. 
The revenue profile across the four years will be boosted by the stronger starting position for the economy, by an expected: $2.4bn, $1.4bn, $1.0bn and $1.1bn.
The expenditure profile is expected to be unchanged, with a modest $1bn undershoot on expenditures in 2017/18 to be offset by the cost of new policy measures.
On these figures, the cumulative deficit for the four years is $40bn, $6bn lower than at Budget time, with the profile of: -$27bn (a $2bn upgrade); -$20bn, -$1.5bn and +$8.5bn.
"The case could be made for modest personal income tax relief, potentially to be announced in the May 2018 Budget," Andrew Hanlan said.
"This could be along the lines of those announced in the May 2016 Budget, shifting the income tax thresholds, costing $4bn over four years.
"There is also the scope to amend the ten year company tax cut plan, which is already incorporated into the fiscal estimates."
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Westpac sees fewer downside risks and scope for tax cuts

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Westpac will provide interest refunds to 13,000 owner-occupier borrowers who have interest-only home loans.
 The refunds amount to $11 million for 9,400 of those customers. The remediation follows an error in Westpac's systems which meant that these interest-only home loans were not automatically switched to principal and interest repayments at the end of the contracted interest-only period. To remediate the affected customers, Westpac will now:
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<li>Refund the additional interest paid from when the loan was contracted to convert to principal and interest repayments</li>
<li>Discount the interest rate for the remaining term of the loan.</li>
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This remediation has been designed so that customers pay no more interest over the life of the loan than they would have if the system error had not occurred. ASIC will monitor Westpac's remediation. ASIC and Westpac are yet to conclude an appropriate remediation program for investor customers with interest-only loans affected by the same system error. This has been a long-standing error between 1993 and August 2016.
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Westpac yet to deal with IO investor refunds after systems error

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The Westpac Melbourne Institute Index of Consumer Sentiment rose 3.6% to 103.3 in December from 99.7 in November.
This is a surprisingly strong result and confirms the lift we have seen in the Index over the last three months. The average reading for the Index in the December quarter is 5% above the average for the September quarter when we saw a disturbing slump in consumer spending. This result is supportive of the view that consumer confidence may have bottomed out during that September quarter.
In turn, growth in consumer spending is likely to have also bottomed out in the September quarter. However, with ongoing weak income growth; a low savings rate; and high debt levels we cannot be confident that consumers have the capacity to sharply lift spending despite higher confidence.
A less threatening outlook for interest rates appears to have boosted confidence. During that September quarter households were spooked by media and many commentators saying that interest rates were likely to start rising in the new year. That effect has now calmed down significantly.
Also supporting a more positive assessment for respondents’ finances is coverage of the government’s recent speculation around possible tax cuts.
With the labour market remaining strong respondents are generally more confident about the domestic economy and there is likely to have been a ‘feelgood effect’ from the passing of marriage equality legislation.
Media coverage of tax cuts in the US combined with easing tensions in North Korea, may also be supporting an improved outlook for international conditions.
All five components of the Index improved in December. Responses on family finances support the assessment around interest rates and tax cuts although it is unlikely that respondents are experiencing any relief in terms of wage increases. The ‘finances vs a year ago’ sub-index posted the biggest gain, rising 5.6% to 89.6 – an 18 month high but still well below the 100 mark indicating more consumers are seeing their finances deteriorate than improve. The forward view continues to be more positive the ‘finances, next 12mths’ sub-index posted a further 1.8% rise to 107.3, the most positive reading in a little over two years.
Views on the economy also posted solid gains, the ‘economic conditions, next 12 months’ sub-index rose 5% and the ‘economic outlook over the next five years’ sub-index was up 3.4%.
The ‘time to buy a major household item’ sub-index rose 2.8% but at 122.1 remains well below the long run average of 127.5 and still pointing to subdued consumer spending plans for the Christmas period.
The December survey included additional questions on news recall that provide insight into the factors shaping sentiment. Overall, recall levels were again low suggesting consumers are getting less exposure to news in general. The highest recall rates were for news on ‘economic conditions’ (19%); ‘budget and taxation’ (19%); interest rates (19%); inflation (10%); jobs (10%); and international conditions (9%). News on all of these topics was viewed as more favourable than three months ago, with particularly big improvements around international conditions, the economy and interest rates.
Consumers continue to become more comfortable about the outlook for jobs. The Westpac Melbourne Institute Unemployment Expectations Index declined 2.4% to 127.6 in December, the index reaching its lowest level since May 2011 (recall that lower reads mean more consumers expect unemployment to fall in the year ahead). The index can be viewed as a measure of consumers’ sense of job security. Qld consumers showed a particularly big improvement in December. Notably, all major states now have index reads below their long run averages, meaning consumer expectations for labour markets are marginally better than average.
The ‘time to buy a dwelling’ index rose 2.3% to 100.6, the first reading over 100 since the start of the year. The state detail continues to show materially weaker reads in NSW (90) and Vic (88) as affordability remains a constraint whereas there are much more positive assessments in Qld (121) and WA (122).
The Westpac Melbourne Institute Index of House Price Expectations edged 0.4% lower to 135. Price expectations continue show a sharp slide in NSW where the state index fell a further 12% in December to be down by 24% over the year. In contrast the Vic index was up 2% for the month and 10% for the year, with Qld and WA posting strong gains in the month (up 8% and 9% respectively). The variations mainly reflect the sharper slowdown in price growth evident in the Sydney market.
Responses to additional questions on the ‘wisest place for savings’ continue to indicate high levels of risk aversion. Nearly two thirds of consumers still favour safe options – deposits, superannuation or paying down debt – with only 12.8% nominating real estate and 8% nominating shares. About the same proportion of consumers favour ‘pay down debt’ (20.4%) as favour real estate and shares combined.
The Reserve Bank Board next meets on February 6. As discussed above, markets and general commentary have cooled their fervour for rate hikes in 2018. In turn that has helped boost Consumer Sentiment along with other factors discussed above.
However we doubt whether this welcome lift to confidence will be sufficient to see the Bank achieve its ambitious growth forecast in 2018 of 3.25%. Constraints around incomes; savings; and debt are still likely to keep consumer spending growth below trend.
The Bank’s forecasts for core inflation (1.75% in 2018) and the cooling in the Sydney property market (which is once again apparent in this survey) are also likely to be significant headwinds to higher interest rates.
We confirm our view that the cash rate is likely to remain on hold at 1.5% through 2018.
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Time to buy NSW dwelling sentiment weakening: Westpac's Bill Evans

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Westpac is cutting fixed interest rates on new interest-only loans by up to 0.4 percentage points.
Interest-only loans for owner-occupiers are being cut by 0.15 percentage points for two and three-year terms, to 4.09% and 4.19%, respectively.
Westpac said the lower rates would be available only to new customers, in a sign the lender is looking to grab market share from rivals.
It comes after several SMALLER banks have cut their fixed interest lending rates in recent weeks, with the Mozo comparison website, signalling lenders including Bankwest, CUA, Heritage Bank, ME Bank and Teachers Mutual Bank all reduced some fixed interest rates over the past month.
Westpac-owned brands are joining smaller rivals by cutting fixed rates across two and three-year terms, for both owner-occupiers and property investors.
Westpac-owned St George, Bank of Melbourne and BankSA have cut rates on two-year fixed loans for investors paying only interest by 0.4 percentage points, to 4.09%.
Fairfax Media recently noted fixed interest rates are set off bond rates, and tend to move in response to expectations about the future direction of the cash rate. 
A note to mortgage brokers said the deepest cuts would be for interest-only loans, where the Australian Prudential Regulation Authority had forced banks to clamp down earlier this year because of "heightened risks" in the housing market.
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Westpac joins smaller banks in cutting rates for IO property loans

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First home buyers have significantly reprioritised what matters most when searching for their ideal home, according to the Westpac’s 2017 Home Ownership Report.
The research, commissioned by Westpac in September, surveyed over 1,000 Australian home owners and first home buyers, and features trend data from the past two years.
The latest report demonstrates in 2017 first home buyers are less focused on buying a home in an area that is trendy or close to work, with both significantly decreasing in the ranking of “essential features” by 83 percent and 48 percent respectively, compared to 2016.
A quiet neighbourhood, access to public transport, and safety are features that have also become less important during the decision-making process, with each decreasing by 37 percent, 21 percent and 9 percent respectively.
Andy Wright, Head of Home Ownership for Westpac Group, said in the face of housing affordability challenges and rising household costs, the research suggests first home buyers are becoming increasingly flexible and willing to shift their priorities in order to achieve their ultimate goal.
“These attitudinal shifts among first-home buyers towards home ownership suggest we may see more looking to buy in areas that they hadn’t considered, with many previously thought ‘essential’ features now just ‘nice-to-have’,” Wright said.
“In fact, the market saw home loans to first home buyers rise to a four year high of 17.4 percent in September of this year, which suggests we may be already seeing the positive results of these shifts, combined with government incentives in New South Wales and Victoria.”
First home buyers are turning their attention to the inside of a home instead, as modern bathrooms and kitchens become more essential, increasing by 25% and 10% respectively since 2016.
Nearly one in five first home buyers plan to support the purchase of their first home with help from family or friends, including guarantor loans.
Meanwhile, home owner-occupiers are opting to maximise their current home and are increasingly considering renovating, growing 14 percent since 2015. The number of those considering selling a home has decreased by 11 percent compared to last year, bringing it back to the same level as 2015.
“Our data shows that home owner-occupiers are increasingly choosing to focus on improving their current home rather than selling and relocating,” Mr Wright said.
The majority of home owners (62 percent) prioritising renovating plan to use their savings as their main funding method to renovate, and 17 percent of home owners who are dipping into their savings will complement this with their home loan, possibly accessing the equity they’ve built up.
“No matter what your housing priorities are in the next year, it is important to do thorough research, make a realistic plan, and consider the best pathway to purchase that suits your individual situation,” Wright said.
“At Westpac, we have specialised home lending experts available to chat to anyone considering their next move. We’re committed to helping our customers with information and products that are best suited to their needs, and personalised advice based on their circumstances.”
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KEY TRENDS AND FINDINGS:
 Among first home buyers, many aspects of a property’s location have become less essential since 2016:
o Trendy (3% in 2017 vs 15% in 2016) o Proximity to work (25% in 2017 vs 48% in 2016) o A safe area (67% in 2017 vs 2016 73%) o Access to public transport (37% in 2017 vs 2016 47%) o Quiet (36% in 2017 vs 2016 56%)
 Among first home buyers, modern bathrooms (45% in 2017 vs 36% in 2016) and kitchens (44% in 2017 vs 40% in 2016) are increasingly considered to be essential
 Trends among home owner-occupiers who are considering a house-related action: o Renovating up by 14% since 2015 (33% in 2017, 30% in 2016, 29% in 2015)
o Selling a home down by 11% since 2016 (18% in 2017, 21% in 2016, 18% in 2015)
 Pathways to purchase: o 17% of first home buyers will complement their primary funding method for the purchase of their first home with help from family and friends
o 62% of home owners considering renovating plan to use their savings as their main funding method
o 17% of home owners will complement their savings with their home loan, possibly accessing the equity they have built up
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First home buyers reprioritised what matters when buying their first home: Westpac

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Westpac Group hopes to thwart "liar loans" by introducing stringent tests on residential property borrowers' existing and future capacity to meet repayments.
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Mortgage brokers' onus of proof will be switched from establishing whether a loan is suitable for a client to making a declaration as to why it is "not unsuitable".
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There are concerns lenders and brokers, paid by commission linked to the size of the loan, have overestimated borrower incomes and underestimated expenses.
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<a href="https://www.afr.com/business/banking-and-finance/liar-loans-hit-500b-mortgagors-are-more-stretched-than-banks-believe-ubs-20170911-gyew5j">Investment bank UBS estimated recently there are about $500 billion</a> "liar loans", which could cause problems when rates rise from record lows.
<a href="https://www.afr.com/business/banking-and-finance/banks-face-margin-squeeze-as-borrowers-forced-out-of-interestonly-loans-20171016-gz1ury">The tough new lending changes </a>from November 14 will apply to Westpac and Bank of Melbourne, BankSA and St George Bank.
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"Westpac is committed to responsible lending and meeting our conduct obligations," a bank spokesman told Fairfax Media.
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"The questions are designed to help understand your client's motivations and align the product to their requirements."
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"The declarations are there to prompt [a mortgage broker] to explain the implications of product choice and their features so a client can make more informed decisions."
 Clients will even be quizzed on having dependents with special needs that might require long-term spending on care and treatment.
It will apply to eight types of loans including fixed interest, interest only, loans for refinancing and debt construction and mixed purpose.
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<div>Questions will cover clients' foreseeable changes, but also special circumstances, such as those approaching retirement age during the loan term.</div>
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