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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Mortgage arrears are on the rise across the country, according to Westpac.
In their quarterly Capital, Funding and Credit Quality update, Westpac research has pointed to an increase in arrears across the board.
Their 30+ day delinquencies have jumped by 25 bps over the last quarter and 90+ day delinquencies has risen from 82 bps to 90, reflecting a near two percent hike.
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Westpac has the highest financial figure when it comes to past due loans greater than 90 days compared to the rest of the big four banks.
They've suggested a greater proportion of principal and interest loans in the portfolio is contributing to a higher delinquency profile.
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Western Australia have been the main driver in the uptick in national mortgage arrears since the end of the mining downturn, however there are rises across most capitals and territories.
NSW delinquencies are up to 71 bps, but remain below the portfolio average.
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wdavis-8cCN98p7xp

Westpac mortgage delinquencies hit two decade high

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Allegations from the corporate regulator that Westpac breached its responsible home loan lending obligations almost 260,000 times have been dismissed by the Federal Court.
The Federal Court dismissed ASIC's responsible lending case against Westpac.
ASIC had alleged that Westpac breached responsible lending laws using an automated process that relied on the Household Expenditure Measure benchmark, rather than using each applicant's individually assessed living costs.
Last September Westpac agreed to pay a $35 million settlement to ASIC in admitting breaches.
But the court rejected the settlement after the parties did not agree on what the responsible lending laws required.
Justice Perram dismissed ASIC's case against the bank today, awarding costs against the regulator.
The parties had previously jointly approached the Federal Court seeking orders that Westpac contravened the responsible lending provisions of the National Credit Act because its automated decision system:
<ul>
<li>did not have regard to consumers’ declared living expenses when assessing their capacity to repay home loans, and instead used a benchmark (the Household Expenditure Measure); and</li>
</ul>
<ul>
<li>for home loans to owner occupiers with an interest-only period, failed to use the higher repayments at the end of the interest-only period when assessing a consumer’s capacity to repay the loan. For example, for a loan of $500,000 at 5.24% with a term of 30 years and a 10-year interest-only period, the assumed repayment using the incorrect method is $2,758 per month, whereas the actual repayment after the expiry of the interest-only period using the correct method is $3,366 per month.</li>
</ul>
The litigation related to Westpac’s home loan assessment process during the period December 2011 and March 2015.
For 50,000 home loans, Westpac received, and did not use, consumers’ actual expense information that was higher than the Household Expenditure Measure.
For 50,000 home loans, Westpac used the incorrect method when assessing a consumer’s capacity to repay a home loan at the end of the interest-only period.
Of these 100,000 loans, Westpac should not have automatically approved approximately 10,500 loans.
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j.ballantyne1990-6AQqhLzZaK

Westpac win responsible home loan case taken by ASIC 

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EXPERT OBSERVER
The June housing finance approval figures were consistent with stabilising market conditions through the middle of 2019.
The number of owner occupier loan approvals rose 0.4%mth, in line with expectations but still down 13.6%yr.
The total value of investor loans also rose 0.5%mth with the combined total value of owner occupier and investor loans up a firm 1.9%mth but with coming off weak May reads (–1.9% and –2.7% respectively).
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By state, the number of owner occupier approvals rose 0.7%mth in NSW and 0.3%mth in Qld but declined 0.6%mth in Vic – the three big eastern states having recorded the biggest falls over the last year (in the 13-18%yr range). Approvals posted firmer gains in WA (1.1%mth), SA (+2%mth) and Tas (+2.1%mth), these states having seen milder declines over the last year in the 4-7% range.
As the volume and value mix suggests, average loan size rose in the month, the detail showing gains across all states but concentrated in the 'upgrader' segment.
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Construction-related finance approvals declined 2%mth, reversing all of the previous month's gain although the pace of decline still looks to have moderated since the start of the year suggesting non high rise dwelling approvals should start to level out in coming months.
Timelier data on auction activity, sales and prices have shown a clear improvement through Jun-Aug with a particularly strong lift in auction clearance rates since the start of July.
Reduced uncertainty around housing-related tax policy following the Federal election and the RBA's back to back rate cuts in June and July have been key supports.
Despite the shift, sales activity still looks to be running at low levels by historical standards (judging by turnover data to June and the number of auctions through July-August).
The next few months of approvals data and the performance of auction markets as we head into the Spring selling season will an important gauge of the extent to which the shift is seeing a sustained pick up.
MATTHEW HASSAN is a Senior Economist for Westpac
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Matthew_Hassan-HHWHptmrw4

More signs of stabilisation in Australian housing finance: Westpac

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EXPERT OBSERVER
The fall in sentiment this month is troubling as it comes against what should have been a supportive backdrop for confidence. The last month has seen a further 25bp interest rate cut from the RBA, the Federal government’s tax package pass through Parliament, more signs that the Sydney and Melbourne housing markets are stabilising and even some more improvement in the US-China trade dispute. Despite these positives, Australian consumer confidence has fallen to a two year low.
The main driver continues to be deepening concerns about the outlook for the Australian economy and prospects for family finances. The index components show the biggest decline in the sub-index tracking expectations for the ‘economy, next 12 months’ which slumped 12.3% to be down 16.4% since May to its lowest level in four years. Longer term expectations for the economy were also pared back sharply, the ‘economy, next 5 years’ sub-index falling 6.7%.
Deteriorating expectations for the economy outweighed any near term support from the prospect of lower interest rates and tax relief. The sub-index tracking consumers’ expectations for ‘finances, next 12 months’ also recorded a sharp 8% fall, moving back into net pessimistic territory for the first time since late 2017.
Consumer views around current conditions were better supported. The ‘finances vs a year ago’ sub-index lifted 3% to a five month high, although at 85.7, the sub-index remains at weak levels overall. Consumer attitudes towards spending also improved, the ‘time to buy a major household item’ sub-index rising 3.6% to the highest level since late last year. This will be of some relief given that consumer views around current conditions tend to be a better guide to current spending activity. However, that support could fade quickly if weaker expectations for near term prospects are realised.
Responses over the survey week show the Reserve Bank’s rate cut on July 2 had little or no impact on sentiment. Note that the bulk of the survey was completed prior to the government’s tax package passing into legislation on July 4, although this had been widely foreshadowed by media coverage earlier in the week. Indeed, the muted sentiment response to both interest rate cuts and tax relief may stem from the fact that both developments were widely anticipated. Notably, the sub-group detail showed no boost to sentiment amongst groups that stand to benefit most from policy easing: sentiment amongst mortgage holders declined 3.3% in the month and sentiment amongst middle income earners was down 5.5%.
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Other aspects of the sub-group detail point to some notable ‘sub-plots’. The initial impact of the surprise Federal election result in May looks to be fading with sentiment amongst “Coalition voters retracing over three quarters of the 7.5% jump in June. Sentiment also recorded a big 14% drop in regional NSW where drought conditions have intensified markedly in recent months. Sentiment amongst those with a trade qualification was also down a sharper 7.6% suggesting the residential construction downturn may be starting to weigh more heavily on some households.
Increasing concern about the economy is undermining consumers’ sense of job security. Confidence in the labour market continued to deteriorate sharply in July. The Westpac-Melbourne Institute Unemployment Expectations Index recorded a 5.8% rise, following on from a similar rise last month and taking the index materially above its long run average for the first time since mid-2017 (recall that higher readings indicate that more consumers expect unemployment to rise in the year ahead). Expectations have shown a more marked deterioration in NSW, Vic and WA.
Housing-related sentiment continues to show a clearer positive response to lower interest rates with assessments of both ‘time to buy’ and house price expectations recording strong increases in July.
The ‘time to buy a dwelling’ index rose 5.4% 123.2, the first above trend reading in four and a half years. The index is up 19.5% on the same time last year. The biggest turnaround continues to come in Sydney and Melbourne where substantial price corrections have also improved affordability over the last two years.
The Westpac-Melbourne Institute Index of House Price Expectations Index posted another robust 8.9% increase following last month’s spectacular 22.7% gain. At 119.4, the Index is now at its highest level since May last year but still below the long run average read of 125. All states have recorded sharp rises over the last two months and net positive reads comfortably over the 100 mark. Just over 40% of consumers expect prices to be higher in a year’s time – that compares to less than 20% back in March.
The Reserve Bank Board next meets on August 6. We expect the Bank to leave the cash rate on hold at this particular meeting but see further easing coming later in the year. Having delivered back to back 25bp cuts in June and July, the Reserve Bank has signalled that it is prepared to ease further “if needed”. Updated forecasts released in the August Statement on Monetary Policy, due August 8, will give the best guide to how the RBA sees the case for further policy action. At this stage it seems likely that the Bank will make only minor changes to its growth and inflation forecasts, suggesting policy will be unchanged at the August meeting.
However, policy is set to be in play at every Board meeting between now and the end of the year. Westpac continues to expect a further 25bp rate cut, most likely coinciding with a downgrade to the Bank’s growth and inflation forecasts in November. The specific timing of this next move remains highly uncertain – labour market developments could easily shift it around and there are other factors at play, both overseas and domestically. The Bank will also be monitoring policy sensitive sectors such as housing and the consumer closely to gauge the impact of its easing to date. On that count, updates on consumer sentiment clearly show interest rate moves have shored up confidence in the housing market but have not prevented a wider deterioration in sentiment.
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jrobinson-rf4aSBido9

Sentiment falls 4.1% despite interest rate cuts and tax relief: Westpac

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Westpac is set to pay back tens of millions of dollars to around 40,000 home loan customers after a manual processing system glitch.
The mortgage holders were left on interest-only loans after the term expired, instead of being converted to a principal and interest rate, News Ltd papers have reported.
It is believed Westpac will be paying back under $100 million.
The glitch, which affected Westpac, St George, Bank of Melbourne and Bank SA, meant mortgage holders of the named banks were not paying down the principal as planned.
So when interest rates rose, unaware customers would have found themselves out of pocket. 
Westpac identified the issue in 2017, but the details are only just coming to light.
It has been reported that each customer who has been affected will have been contacted, with around 70 percent of customers having received their reimbursement.
That means around 12,000 customers remain out of pocket.
The error predominantly impacts loans with an interest-only period that expired between 2009 and 2016.
An automated switching process has been introduced to prevent a repeat of the costly error. 
 
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jonathanchancellor-7SQnKwU6yx

Westpac to refund around 40,000 home loan customers after major glitch

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Westpac has reinstated a key home loan lending restriction after APRA, the lending regulator, expressed concerns.
Westpac reportedly infuriated the prudential regulator after it released a handbrake on residential property lending that has been in place across all Australian banks since 2014.
A spokesman for the Australian Prudential Regulation Authority told the Australian Financial Review it was surprised a big four bank had lowered the serviceability floor before a consultation process designed to refine the standard had been completed.
"Authorised deposit taking institutions that are not following the current guidance must, through compensating controls, be able to demonstrate to APRA that they are continuing to lend prudently," the APRA spokesman said.
Although APRA's prudential standards are legally enforceable, the regulator's guidance is not.
Westpac's pitch for new low risk business would have increased the borrowing capacity of home buyers paying principal and interest by as much as 10 per cent.
A month ago, APRA flagged removing the 7.25 per cent serviceability floor and replacing it with a flat 250 basis points buffer in a letter to all Australian banks.
The regulator introduced the serviceability buffers in 2014. 
Westpac <a href="/news/westpac-immediately-relaxes-serviceability-conditions-on-low-risk-owner-occupier-home-loans">had moved to relaxed the serviceability conditions</a> advising its credit officers would have the discretion to approve principal and interest loans to owner occupiers who previously fell just outside lending parameters.
"We have recently updated our approach to assessing some new owner occupier principal and interest home loan applications for an interim period only," the spokesman said.
Select mortgage brokers have been informed by Westpac-owned St George Bank the serviceability floor has been reduced to 6.5 per cent from 7.25 per cent effective immediately.
The changes are not available to investors or owner-occupiers with interest only loans.
APRA, the prudential regulator wrote to the banks and <a href="/news/apra-to-loosen-mortgage-lending-rules">proposed removing the floor</a> saying it had outlived its usefulness, however, it is yet to officially announce a change to the guidelines on the minimum interest rate a borrower must be capable of paying should rates rise.
APRA chairman Wayne Byrnes said in a letter dated May 21 the gap between the 7.25 per cent buffer and the rates on offer had become "unnecessarily wide" with low risk borrowers were being disadvantaged.
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Westpac backtrack on lending serviceability loosening

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Westpac has relaxed the serviceability conditions on low risk owner occupier home loans, immediately increasing the borrowing capacity by as much as 8 percent. 
A spokesman for Westpac confirmed the policy change with The Australian Financial Review today.
Its credit officers would now have the discretion to approve principal and interest loans to owner occupiers who previously fell just outside lending parameters.
"We have recently updated our approach to assessing some new owner occupier principal and interest home loan applications for an interim period only," the spokesman said.
Select mortgage brokers have been informed by Westpac-owned St George Bank the serviceability floor has been reduced to 6.5 per cent from 7.25 per cent effective immediately.
The changes are not available to investors or owner-occupiers with interest only loans.
It comes after APRA, the prudential regulator wrote to the banks and <a href="/news/apra-to-loosen-mortgage-lending-rules">proposed removing the floor</a> saying it had outlived its usefulness, however, it is yet to officially announce a change to the guidelines on the minimum interest rate a borrower must be capable of paying should rates rise.
APRA chairman Wayne Byrnes said in a letter dated May 21 the gap between the 7.25 per cent buffer and the rates on offer had become "unnecessarily wide" with low risk borrowers were being disadvantaged.
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Westpac immediately relaxes serviceability conditions on low risk owner occupier home loans

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The Westpac Bank premises in the heart of Manly has been listed for sale.
The major bank has lease options until 2044 on the property on The Corso, Manly's busiest street where beach seekers will head from the ferry to the sand.
The premises at the wharf end of the road at 32 The Corso is being marketed as a once in a generation opportunity.
The two level commercial site on 665 sqm last traded in 2000 for $4 million.
<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/2019/6/11/Westpac-Manly.jpg" alt="">
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Listing agents Cushman &amp; Wakefield, in conjunction with Patrick Kelleher, of Pine Property, indicated the net income was $994,380 per annum plus GST under the existing lease that runs until 2024.   
<div class="wp-caption">There is a four per cent annual rent increase which will tip the net income over $1 million next year.</div>
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<div class="wp-caption">Offers are due July 2.</div>
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Manly's central Westpac premises listed for sale

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Westpac have cut their interest rate after today's RBA meeting by 0.2 percent.
It is understood there will be higher rate cuts for its IO borrowers at 35bps for investors.
Westpac's rate cut is effective Tuesday 18 June.
David Lindberg at Westpac said the bank took many factors into account in making the decision.
“We are operating in a historically low interest rate environment, which creates the opportunity for home-owners to get ahead on their repayments,” he said.
“It is also a good time for first home buyers to get onto the property ladder with some of the lowest rates in the history of the Australian mortgage market available.”
Westpac announced a range of mortgage interest rate cuts for variable home loan customers and introduced a new first home buyer special for owner occupier principal and interest customers with a fixed rate of 3.49% p.a. for five years.
Westpac customers who choose to package their home loan with the Premier Advantage package receive an additional discount on their home loan rate.  
The following interest rate changes will come into effect on Tuesday 18 June, 2019.  
<ul>
<li>Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 5.18% p.a. for customers with principal and interest repayments.</li>
<li>Variable residential investment property loan reduced by .20% p.a. to 5.73% p.a. for customers with principal and interest repayments.</li>
<li>Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.77% p.a. for customers with interest only repayments.</li>
<li>Variable residential investment property loan rate reduced by .35% p.a. to 6.09% p.a. for customers with interest only repayments.</li>
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David Lindberg, Westpac Chief Executive, Consumer said today’s rate change was carefully considered by the business. 
Currently 69% of Westpac home loan customers are ahead on their repayments, including offset balances.
NAB and CBA cut by the full 0.25 percent.
ANZ cut by 0.18 percent, saying it also had obligations to its deposit holders.
ANZ's new lowest rate will be 3.63%, however they are only passing on a cut of 0.18 basis points effective June 14.
Effective from June 25 CBA's standard variable rate home loans will be reduced by 0.25% p.a.
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Westpac to cut by 0.2% but more for IO borrowers

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EXPERT OBSERVER
The correction in Australian dwelling prices that has been running since late 2017 is showing clearer signs of moderating in early 2019.
The CoreLogic home value index, covering the eight major capital cities, fell 0.4% in May to be down 8.4%yr. After tracking a 10% annualised pace of decline between Nov and March, price slippage has been running at a more moderate 6.7% annual pace over the last two months.
While that is a clear improvement it is still well short of stabilisation.
Prices nationally are now 10.7% below their Sep 2017 peak. The current price adjustment has now been running for 20mths putting, eclipsing the much shallower 2010-11 correction.
More major capital cities recorded price declines in May. The moderation in price falls continues to be slightly more pronounced in the Sydney and Melbourne markets.
The annual pace of declines in these markets improved for the first time since early 2017 but is still tracking a solid pace, –10.7%yr in Sydney and –9.9%yr in Melbourne with cumulative declines of 14.9% and 11.8% respectively.
Performances across other markets continue to be more varied. Perth's longer running correction accelerated again, prices down –1%mth, –8.8%yr. Brisbane, which was stable through 2018, has continued to see price slippage in 2019, prices down –0.5%yr, –2.3%yr. Adelaide remains an isolated area of calm amid the sea of red, prices nudging 0.2% higher in the month to be up 0.4%yr, essentially stable.
Across the smaller markets: Hobart is coming off its boom sharply with a second month of price declines paring annual price growth back to 3.4%yr, well down on the double digit pace nine months ago. Canberra has been steadier, prices dipped 0.2%, annual growth holding just under 2.5%yr.
The mining-dominated Darwin market is mirroring the difficult conditions in Perth, its long-running correction also re-accelerating with a 1.6% decline in the month taking prices down 8.6%yr to their lowest level in over 12yrs.
The dwelling type detail continues to show units outperforming houses slightly in recent months although both segments are showing a similar moderation in the pace of price declines.
The breakdown by tier shows a more pronounced moderation in price declines across properties in the top tier, albeit with this group coming from a weaker starting point. In Sydney, the three tiers have been tracking closely over the last 3mths. Bottom tiers are outperforming in Melbourne and Brisbane, with prices in these segments close to stabilisation.
The moderation in price declines is consistent with the improved tone from auction markets in recent months, with a notable lift post-election, the result meaning changes to the tax treatment of investor housing are now off the table.
With interest rates set to move lower, some relaxation in regulatory guidelines for loan assessments likely and increased Federal assistance for first home buyers, prospects for an eventual stabilisation in prices are looking considerably better, boding well for an eventual stabilisation in prices.
MATTHEW HASSAN is a senior economist for Westpac
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