Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

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.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

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;

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.

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.

[smartcode_project:default project_id=112195 project_image_fid=3286]

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.

"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.

"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."

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.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

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.

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.

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.

<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.

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.

<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" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"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.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

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.

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.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"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.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

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.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

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.

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.

[smartcode_project:default project_id=28384 project_image_fid=3823]

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.

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.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"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."

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.

<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>

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.

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.

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.

[smartcode_project:default project_id=28384 project_image_fid=372542]

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.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

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.

"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."

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.

[smartcode_project_cta:default project_id=28384]

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

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.

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.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"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."

[smartcode_project:default project_id=143337 project_image_fid=374767]

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.

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.

[smartcode_project:default project_id=143337 project_image_fid=374760]

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.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"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."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"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.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

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.

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.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

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

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.

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.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"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.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"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."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"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."

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.

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>

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.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"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."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

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;

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.

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

Westpac

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The Westpac Melbourne Institute Consumer House Price Expectations Index has continued to firm, rising a further 7.5 percent since October, according to the Red Book January 2017 report.
At 149.6 the index is back near the highs of early 2015.
A strong majority of consumers nationally expect prices to rise over the next 12 months with 13.2 percent predicting double digit growth and 49.7 percent expecting single digit increases. Just 26.2 percent expect prices to hold with 10.9 percent predicting price declines.
<a href="https://www.propertyobserver.com.au/images/2017/02/03/wes-3.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/03/wes-3.jpg" alt="">
Price measures are now giving a more consistent messages on actual price growth with all showing a lift and two of the four major measures suggesting gains tracking at a 10 percent annual pace over the second half 2016.
Consumers in NSW and Victoria remain considerably more bullish on price growth. The biggest lift in expectations over the last three months has been in WA (+18.7 percent) followed by NSW (+7.2 percent).
While the latter looks to be responding to a renewed quickening in price growth, the shift in expectations in WA looks more tentative.
<a href="https://www.propertyobserver.com.au/images/2017/02/03/wes-4.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/03/wes-4.jpg" alt=""> 
Price expectations have been much weaker in WA as actual prices out west have recorded persistent declines.
Although WA consumers now look to be anticipating a stabilisation, similar expectations in mid 2016 proved premature and the latest firming has yet to be reflected in any moderation in actual price declines.
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jonathanchancellor-7SQnKwU6yx

Buyers expect property prices to keep rising in 2017: Westpac

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GUEST OBSERVATION
The economic growth forecasts have undergone a number of revisions to reflect two major surprises since May, namely: conditions across the broader economy are weaker than anticipated; and commodity prices have spiked temporarily. The economic growth forecasts are optimistic in our view. Real GDP growth of 2.0% for 2016/17, downgraded from 2.50%, requires a quick return to solid growth, averaging 0.8% per quarter for the rest of the year. In addition, the medium-term economic projections err on the optimistic side. From 2018/19 to 2022/23 real GDP growth is assumed to be 3.0% each year, a little faster than potential, judged to be 2.75%. The thinking is that spare capacity is gradually absorbed, closing the output gap by the end of 2022/23. The terms of trade are projected to remain flat at around its 2005 level from 2019/20. Nominal GDP growth is assumed to be 5.50% over the long-run (described in a Treasury working paper in 2014 but not specifically mentioned in MYEFO). <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.36%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.36%20pm.jpg" alt=""> 1) The real GDP growth profile for the four years 2016/17 to 2019/20 is: 2.0% (downgraded by 0.50%); 2.75% (downgraded by 0.25%); 3.0% and 3.0%. The Australian economy began the 2016/17 financial year on a weak note, with output contracting by 0.5%, the sharpest quarterly decline since the GFC. 2) Nominal GDP growth profile is: 5.75% (upgraded by 1.50%); 3.75% (downgraded by 1.25%); 4.25% (downgraded by 0.75%); and 4.50% (downgraded by 0.50%). Notably, the size of the nominal economy is 1.0% smaller at the end of 2019/20 than assumed at budget time. Inflation and incomes are softer than anticipated reflecting the weaker conditions across the broader economy. 3) The terms of trade jumps a forecast 14% in 2016/17 (upgraded from 1.25%) on the spike in commodity prices, followed by a 3.75% decline in 2017/18 (downgraded from 0%) as commodity prices retreat to more sustainable levels. There is considerable uncertainty around the timing / speed of commodity price adjustments. The iron ore price is assumed to decline from its recent average of US$68 per tonne FOB through the March and June quarters of 2017 to reach $55 in September 2017. The budget assumed a year average price of $55. The coking coal price is assumed to be US$200 per tonne FOB in line with the December quarter contract price, before declining through the September and December quarters of 2017 to $120 in March 2018. The Budget year average price was $91. Thermal coal prices are assumed to remain at $62 per tonne FOB, up from $52 at budget time. 4) Labour market forecasts have been downgraded to reflect the soft start to the 2016/17 year. Employment growth has been lowered by 0.5% this year and 0.25% next year, while wages growth has been lowered by 0.25% this year and next. See table 2 below for details. <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.47%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.47%20pm.jpg" alt=""> The 2016/17 budget deficit forecast is effectively unchanged from that in May, while the cumulative deficit for the four years to 2019/20 has deteriorated by $10.3 billion (with net savings of $2.5 billion partially offsetting $12.8 billion in slippage due to the weaker forecasts). The medium-term projections have the budget returning to surplus in 2020/21, as assumed in May, although the size of the surplus has been trimmed from 0.2% of GDP to 0.1% of GDP. Policy decisions had little net impact on the budget position, with a net saving of $2.5 billion, back-loaded over the two out years. Revisions to the economic growth forecasts (including parameter variations more generally) cost the budget $12.8 billion over the four years, including a saving of $0.5 billion in the current year. Receipts are $30.5 billion lower than at Budget time over the four years, partially offset by a $16.5 billion undershoot on payments. Critically, as noted above, the size of the nominal economy at end 2019/20 is 1.0% smaller than assumed at Budget time. Of the $30.5 billion hit to receipts over the four years, key impacts include: individual income tax collections, down $18.3 billion due to weaker wage and employment outlook; company tax down $5.9 billion with weaker non-mining corporate profits only partially offset by higher mining profits from stronger commodity prices over 2016/17; and lower GST collections, down $5.3 billion.
On the payment side, weaker wages growth and lower inflation help to contain expenditure growth. <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.58%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.58%20pm.jpg" alt="">
Bill Evans is chief economist with Westpac.
Andrew Hanlan is senior economist with Westpac.
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j.ballantyne1990-6AQqhLzZaK

Surplus by 2020/21 on track, but at an estimated 0.1% GDP: Bill Evans and Andrew Hanlan

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Westpac are set to increase interest rates for foreign mortgage customers, writes the Australian Financial Review.
The bank is reported to be introducing a new loan category next month, a 'Non-Resident Reference Rate'.
Off-shore based customers who currently have loans with the bank will have to pay a 0.5% higher standard variable rate.
A Westpac spokesperson told the Australian Financial Review that the higher rates took into account the bank's "risk settings, the economic landscape, and expected changes in capital requirements for that segment of the mortgage market”. 
The decision comes after a long crackdown by the major banks on foreign lending.
Westpac announced, as of April 26. it would no longer loan money to foreign home buyers seeking to purchase residential property.
The bank has not settled any new mortgages from offshore-based clients since then.
Other major banks such as NAB and ANZ have also introduced similar policies halting new loans to foreign buyers.
Westpac has also dropped its loan to valuation ratios (LVRs) from 80% to 70% for local applications that include foreign income.
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Major bank continues foreign loan clampdown

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Owner occupier finance approvals came in better than expected for September, with the detail a little softer but separate figures on the value of investor finance loans on the strong side.
The number of owner occupier approvals rose 1.6%, well above the market expectations of a 1.6% fall. Industry data on bank loans had been soft in the month.
The gain was led by strong refi activity – ex refi loans were up just 0.5% and down in value terms (–0.8%mth) implying average loan size was quite a bit smaller.
Other detail showed a flat month for construction-related lending.
By state, there were solid gains for total owner occupier loans in NSW, Vic, Qld and SA with a decline in WA.
The 4.6% rise in the value of loans to investors is notable as it means the total value of housing finance loans is up in the month with a clear firming since the recent low in April – that in turn suggests other data pointing to a firming in housing market conditions is genuine and that the bulk of the lift is coming from domestic investor activity. Details 
 Owner–occupiers (no.)   1.6% mth, –3.7%yr    – ex-financing (no.)       0.5% mth, –7.8%yr                      
Construction of dwellings (no.)      –0.8% mth, –5.2%yr       Purchase of newly built dwellings (no.)   5.9%mth, 5.7%yr                            
Value of loans:             
Owner-occupiers ($bn)   0.9%mth, –5.4%yr     Investors ($bn)      4.6% mth, 9.6%yr           Total ($bn)              2.3% mth, –0.2%yr         Total ex refi ($bn)   1.8% mth, –1%yr      
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Owner occupier finance approvals better than expected in September: Westpac's Matthew Hassan

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GUEST OBSERVER
Retailers enjoyed a rare gain in August, sales lifting 0.4 percent in the month, the result coming in a touch above Westpac’s 0.3 percent forecast and the consensus expectation of a 0.2 percent gain.
While a win vs expectations and the best monthly gain since October last year, that is not saying much – ‘par’ for retail sales is about 0.5 percent a month.
Annual sales growth is still running at an insipid 2.8%yr with trend sales growth tracking an even poorer 1.7 percent annualised pace.
The detail was in line with expectations as well. As mentioned in our preview, July sales were ‘held back’ by an abnormally large 5.8% fall for department stores that reflected the earlier timing of winter sales. Sales in this category rebounded 3.5 percent in August – ‘normalising’ but still to a weak underlying trend reflecting the specific challenges facing this type of retailing.
Across the other categories: food was up 0.3 percent and household goods up 0.2 percent (another disappointing read given the current boom in housing construction that should be boosting spending in housing related categories).
Both clothing (–0.4 percent/mth) and ‘other’ retail (–0.6 percent/mth) had a soft August. However cafes and restaurants saw another solid gain up 1.2 percent/mth following a 1.4 percent rise in July.
By state, better gains for NSW (0.5 percent), Vic (0.7 percent), Qld (0.7 percent) were partially offset by a 0.5 percent fall in WA.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Australian retail sales growth still insipid: Westpac's Matthew Hassan

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Dwelling approvals outstripped expectations again in August, with a small 1.8 percent pull back coming well above the consensus expectation of a more material 6 percent decline and a slight upward revision to July's big jump.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.56.55%20PM.jpg">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.56.55%20PM.jpg" alt=""> The number of approvals in July was the second highest month on record. Even with a dip, the August reading is still the fourth highest month on record with approvals now up 10.1 percent/yr.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.00%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.00%20PM.jpg" alt=""> Expectations for a pull back centred on high rise approvals. This segment saw a spectacular 39.8 percent jump in July that was expected to largely reverse in August. Approvals instead held up much better than expected with our estimates pointing to about a 10 percent drop in seasonally adjusted terms in the month. This still leaves high rise approvals 25 percent above their June level.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.06%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.06%20PM.jpg" alt="">
The rest of the detail showed mixed moves. The small ‘low-mid rise’ segment saw a solid 7.8 percent gain in the month but the larger and more stable detached house approvals segment recorded a 1.3 percent dip. Combined, approvals ex high rise were up slightly, about 1.2 percent/mth but down 4.1 percent/yr. To the extent that this measure is more reflective of underlying conditions it is pointing to a modest trend decline running at about 1-1.5 percent a month.
<a href="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.25%20PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/04/Screen%20Shot%202016-10-04%20at%204.57.25%20PM.jpg" alt=""> By state, approvals dipped 2.3 percent in NSW but were up slightly in Vic and Qld with big monthly declines coming in WA and SA. Notably, within the NSW estimates ‘unit’ approvals were still the second highest monthly level on record.
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The value of renovation approvals also softened in August, down 0.9%mth, but up slightly on a year ago (+1.2%). Both moves are fairly small for what is typically a much more volatile monthly series.
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The value of non residential building approvals recorded a large 24.3 percent fall in August to be down 12.9 percent/yr. Monthly reads have been extremely choppy over the last year but approvals appear to be tracking and underlying downtrend. Falls in public sector work, private accommodation, and private sector education, health and office approvals drove the August decline.
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 Overall, the continued high level of dwelling approvals points to a dwelling construction upturn holding up stronger for longer. Both tightening lending conditions and a surge in new apartment supply have had little or no impact to date but are expected to rein in 'high rise' approvals over the next year. But even allowing for a potentially sharp reversal lower in coming months, the pipeline of dwellings under construction is set to continue expanding strongly throughout the rest of 2016 and is likely to continue rising in the first half of 2017.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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jchancellor-FAypfDUnLy

High rise boom continues: Westpac's Matthew Hassan

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With the major events of ‘Brexit’ and prolonged election uncertainty it is not surprising to see a fall in the Index. In fact, given these developments, this fall appears to be surprisingly modest. 
The survey was conducted over the period July 4 to July 7. 
By the time of the survey market volatility associated with ‘Brexit’ had largely settled down and media commentary was, correctly in my view, concentrating on the implications for the UK economy rather than the initial reaction which speculated on some disastrous contagion for the whole of Europe. 
However concerns would have lingered for many respondents given the blanket publicity which the ‘Brexit’ development received. 
On the other hand election uncertainty persisted throughout most of the survey period. 
Respondents would have been particularly unnerved about the prospect of an inconclusive election result given the experience during the last ‘hung’ Parliament in 2010 to 2013. 
Consequently, to see the Index fall by only 3%, back to its level of March 2016 and still 4.2% above its April level is encouraging. 
Since the end of the survey period we have seen some welcome political certainty with the prospect of a hung Parliament avoided. It is reasonable to speculate that had the survey been conducted over the last few days the results would have been more positive. 
Furthermore, we expect the Reserve Bank to move to cut rates again following its meeting on August 2. 
Following the cut in May the Index surged by 8.5% putting it firmly in positive territory above 100, indicating optimists outnumber pessimists. With 
the Index currently poised only slightly below 100 we can be reasonably confident that the Index will be back above a 100 next month despite having to negotiate two major shocks in ‘Brexit’ and election uncertainty. 
With a 3% fall in the overall Index it is not surprising that respondents were a little less confident around the labour market. 
The Westpac Melbourne Institute Index of Unemployment Expectations rose 1.9% in July but the Index is still 4% below its level in April and, most importantly, 8.0% below its level of a year ago. 
Our assessment of that Index is that it is indicating a steady improvement in the labour market. 
Reflecting market volatility and political uncertainty, both components of the Index that relate to households’ assessments of their own finances were weaker. The sub-index tracking assessments of ‘family finances compared to a year ago’ fell by 
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5.2% while the ‘family finances over the next 12 months’ sub- index fell by 2.7%. 
Concerns about the short term economic outlook intensified with the component ‘economic conditions over the next 12 months’ falling by 6.1% although the 5 year outlook was steady. 
The sub-index tracking vies on ‘time to buy a major household item’ fell by 1.5%. 
Over the last 12 months the overall Index has increased by a healthy 7.4%. However that improvement has been dominated by the ‘economic outlook’ components which have risen by nearly 20% on average whereas the ‘family finances’ components have only improved by an average of 2.4%. Respondents may be buoyed by reports of overall improving economic conditions but they are not feeling the same improvement in their own financial position, pointing to a less encouraging basis for boosting consumer spending than may be implied by the overall Index. 
Signals in the housing market were mixed. The ‘time to buy a dwelling’ index fell by 1.8% to 101.8. 
This Index has been markedly weaker since the middle of last year although there has been no sign of further deterioration in 2016. 
On the other hand respondents are regaining their confidence in the outlook for prices. The Westpac Melbourne Institute Index of House Price Expectations lifted by 4.3% in July to its highest level since August last year and up around 17.3% on the average of the last quarter of last year. 
The Reserve Bank Board next meets on August 2. We expect that it will decide to further reduce the overnight cash rate to 1.5%. 
This will follow the decision to lower rates by 0.25% at its Board meeting in May. 
Westpac had not expected that move because we underestimated the significance which the Board had read into the March quarter inflation report. On the basis of that report the Board lowered its forecasts of underlying inflation in 2016 from 2.5% to 1.5% and in 2017 from 2.5% to 2.0% – the bottom of the Bank’s target range.
We do not believe that it would have made such significant changes to its assessment of the inflation outlook without being prepared to cut rates further. Indeed its own forecast of 2% in 2017 incorporated the market forecast of a further rate cut.
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With the AUD lifting above USD 0.76 and the inflation target at risk it seems a sensible policy option to cut rates further. 
However we are mindful that despite cutting rates the Board did not lower its growth forecasts indicating that the motivation behind the May decision was entirely around the need to credibly achieve the inflation target over the forecast period. Rigid adherence to that policy in future might be questioned particularly, as hinted at in this survey, if the rate cuts spill over into excessive exuberance in asset markets. Hence we expect that this cut will, most likely, be the last in the current easing cycle. 
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Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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bevans-rYk9SxEa4r

Consumer sentiment falls on Brexit and election concerns: Westpac's Bill Evans

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

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Property pundits are most aggressive on pricing in New South Wales, Victoria and Queensland, with those in Western Australia expecting property prices to decline.
According to the Westpac Red Book July 2015, Australians believe price increases over the next year, as noted in the Westpac-Melbourne Institute Consumer House Price Expectations Index, which rose 8.2% in Jul to 145.9.
A variation in June, where the index fell slightly to 134.9, is believed to be a seasonal decline.
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A weak buyer sentiment and strong price outlook was reported in NSW and Victoria and a strong sentiment and strong price outlook felt in Qld and SA. (Qld, SA)
 
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mick.cee-iDmgDDAmu8

Bullish property market in NSW, Vic and QLD

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<div class="column">Westpac Economics research for July has found housing sentiment falling to the first sub-100 level since June 2010.</div>
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Respondents to the monthly Red Book survey question on whether or not now was the time to buy fell 15.4% to 94.8. 
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<div class="column">The report, however did note 5-8ppts of the July fall may be seasonal.</div>
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<div class="column">Allowing for a seasonal adjustments, the index reading of 94.8 is well under the average of 125.</div>
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<div class="column">The survey found states with a weak buyer sentiment and strong price outlook are Victoria and New South Wales, weak sentiment and weak price outlook in Western Australia and strong sentiment and strong price outlook in Queensland and South Australia.</div>
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