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According to the latest housing finance data release for March 2017 there was $33.2 billion in finance commitments over the month. 
The monthly value of commitments increased by 0.9 percent to be 5.3 percent higher year-on-year. 
While the value of commitments to investors has slowed over recent months, owner occupier demand lifted slightly in March 2017.
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The data shows that in March 2017, the $33.2 billion in housing finance commitments comprised of $20.2 billion to owner occupiers and $13.0 billion to investors. 
The value of owner occupier commitments increased by 0.9 percent over the month to be at its highest level since June 2016. 
Investor demand also rose over the month, up 0.8 percent however, it remains well below levels from a few months ago. 
Looking at recent monthly data it suggests that demand from owner occupiers has been reasonably steady while the level of demand from investors has eased. 
Keep in mind that this data pre-dates the most recent policy announcement from APRA; over the coming months there are likely to be a number of headwinds for investors in the form of: higher mortgage rates, reduced availability of interest-only lending and changes to depreciation benefits for plant and equipment on investment property for new purchases. 
Given this we would expect that investor demand is likely to fall further over the coming months.
<a href="https://www.propertyobserver.com.au/images/2017/05/24/chart-2-2.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/2017/05/24/chart-2-2.jpg" alt="">
Owner occupier demand continues to be fueled by purchases of established housing stock while refinance activity continues to fade. 
The $20.2 billion in housing finance commitments to owner occupiers consisted of $1.8 billion for construction of dwellings, $1.1 billion for purchase of new dwellings, $6.1 billion for refinancing of established dwellings and $11.1 billion for purchase of other established dwellings. 
The value of lending for construction and purchase of new dwellings has remained at fairly consistent levels over the past year and a half. 
The value of refinancing has been trending lower since it peaked in December 2015 and it is now at its lowest level since July 2015. 
At the same time, demand for purchases of established dwellings is trending higher and is at its highest level since September 2015.
<a href="https://www.propertyobserver.com.au/images/2017/05/24/chart-3-2.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/2017/05/24/chart-3-2.jpg" alt="">
Mortgage demand from investors overwhelmingly comes from investors buying established housing rather than new housing. 
The $13.0 billion worth of commitments in March 2017 consisted of $1.1 billion from construction of dwellings and $11.9 billion from established housing. 
The $1.1 billion in commitments for construction was 6.1 percent higher over the month while the $11.9 billion for established housing is 0.3 percent higher over the month. 
The value of lending for investors for established housing is now down -4.6 percent from its most recent peak two months ago and -12.5 percent lower than its historic peak in April 2015.
<a href="https://www.propertyobserver.com.au/images/2017/05/24/chart-4-2.jpg" target="_blank">Click to enlarge</a>
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Comparing established housing to new housing continues to show that the bulk of housing demand is coming from established housing stock. 
Over the month, 85 percent of mortgage demand (excluding refinances) was for established housing stock ($23.0 billion) with the remaining 15 percent ($4.0 billion) for new housing stock.
The data is pointing to ongoing weaker demand from the investor segment of the market and refinances from owner occupiers slowing while demand from owner occupiers for established housing stock is trending higher. 
With the lending environment continuing to change, particularly for investors, we would expect that demand from investors will continue to wane. 
Higher interest rates, the rationing of the availability of interest-only lending and reduced negative gearing benefits is likely to weigh on investor demand over the coming months.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Investor mortgage demand continues to wane: Cameron Kusher

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The flow-on effect of a commodity price slump a few years back saw property prices crash in most of Australia’s mining towns, according to CoreLogic’s latest Property Pulse.
Cameron Kusher, CoreLogic head of research, said prices and rents slumped by as much as 60 percent in certain markets, adding there’s some good news on the horizon, with many of mining towns seeing sales volumes lift where there are signs that the rate of decline in house prices are starting to slow.
“History shows that mining booms don’t last forever and it would be difficult to find anyone that could suggest the house prices in many of these towns were sustainable during the boom," he said.
"At the time, prices were being driven higher by a temporary influx of residents on high incomes and therefore, creating greater housing demand at a time in which supply which was largely irresponsive which drove prices to record high levels.
"As the demand subsided supply was beginning to increase which led to substantial falls in both prices and sales.”
Gladstone – 578 sales over the past year at a median price of $323,875. Sales volumes are 68 percent lower than their July 2007 peak and median prices are 32 percent lower than their September 2012 peak.
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Mackay – 1,216 sales over the past year at a median price of $335,000. Sales volumes are 63 eprcent lower than their April 2004 peak and median prices are 23 percent lower than their June 2013 peak.
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Isaac - 198 sales over the past year at a median price of $140,000. Sales volumes are 70 percent lower than their March 2012 peak and median prices are 77 percent lower than their November 2012 peak.
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Port Hedland - 204 sales over the past year at a median price of $300,000. Sales volumes are 49 percent lower than their July 2006 peak and median prices are 67 percent lower than their June 2013 peak.
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Karratha - 289 sales over the past year at a median price of $285,000. Sales volumes are 44 percent lower than their March 2005 peak and median prices are 65 percent lower than their October 2010 peak.
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Roxby Downs - 31 sales over the past year at a median price of $225,000. Sales volumes are 83 percent lower than their December 2003 peak and median prices are 55 percent lower than their October 2013 peak.
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Cameron Kusher said while each of these markets has recorded a significant fall in sales and selling prices over recent years, more recently each market has started to see sales rise.
“While this result is unlikely to represent demand substantial enough to drive prices higher, it may be enough to slow or stop the declines in prices in the short to longer term.
"It’s also important to remember that it’s not as if there is no demand for housing in these towns, it’s just substantially lower than it was during the mining boom.
"Anyone looking to purchase now is securing a property at a substantial discount from previous highs however, these towns also continue to achieve some of the best rental returns based on current pricing and rents.”
"While I expect very little prospects for capital growth over the coming years, investors looking for a passive income may be becoming more attracted to these markets which could explain the recent uptick in sales."
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Gladstone still down 32 percent, but buyer demand moves off the floor in mining regions: Cameron Kusher

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Based on the relationship between demonstrated housing demand and advertised stock levels we are seeing relatively more stock available for sale compared to demand for that stock across the capital cities at the moment.
The months of supply figure compares the number of unique properties advertised for sale to the number of transactions in the market. The analysis provides unique insight into how long it should take to clear the volume of stock currently available for sale. It is important to note that off-the-plan housing stock is typically not advertised for sale as individual properties and as a result is not included within this analysis.
Across the combined capital cities, there is currently 4.4 months’ worth of residential properties being advertised for sale. As the first chart shows, the months of supply is currently higher at this point of the year than it has been each year since 2012. The increasing months of supply is largely due to the slowing rate of transaction activity rather than a spike in properties available for sale, indicating demand has diminished relative to advertised supply levels which is pushing the figure higher. <a href="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2017-05-15--image1.jpg" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/19/rsz_kusherchart.png" width="700" height="425">
Sydney – there is currently 3.0 months of established housing supply available for sale across the city. The city has seen consistently low months of supply over recent years however, the figure is currently at its highest level for this time of year since 2012.
Melbourne – established housing stock currently sits at 4.2 months of supply for the city. Supply levels remain quite low but are at their highest levels for this time of year in five years.
Brisbane – the city currently has 5.1 months of established housing stock available for sale. The months of supply figure is higher than it has been at this time of year for each of the past five years.
Adelaide – there is currently 3.7 months of established housing stock available for sale. Although stock levels are higher than they were at this time over the past two years, stock levels were higher over the three years previous to that.
Perth – at the moment there is 8.3 months of established housing stock available for sale throughout the city. This is a high months of supply figure relative to other capital but it is well down on the 8.7 months at the same time last year.
Hobart – the months of supply figure for Hobart is the lowest it has been for many years. There is currently 4.1 months’ worth of established stock available for sale which is down from 5.0 months a year ago and the 7.2 months the year previous.
Darwin – across the city there is currently 6.7 months of established housing supply which is well down on the 10.5 months at the same time a year ago and 7.5 months over the previous year.
Canberra – there is currently 2.6 months of supply of established housing stock for sale in Canberra. The months of supply level is the same as what it was a year ago but lower than the previous years highlighted.
Based on these figures it seems that the supply of stock for sale relative to demand is increasing in Sydney, Melbourne and Brisbane. Meanwhile demand is outweighing supply in Hobart and Canberra leading to a decline in the months of supply. In Perth and Darwin supply continues to dramatically outweigh demand but the balance is slowly improving. In Adelaide there has been little change in months of supply over recent years suggesting the market is in relative equilibrium.
Cameron Kusher is a research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
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Fewer buyers results in greater months of supply: Cameron Kusher

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The Australian Tax Office (ATO) released their taxation statistics for the 2014-15 financial year last week, and from a housing market perspective it provides some really valuable data on property investor behaviour.
<a href="https://www.propertyobserver.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" width="700" height="425">
Over the 2014-15 financial year, property investors claimed $11.120 billion in net rental losses compared to $7.491 billion in net rental profit.  The value of net rental profit rose by 0.3% over the year while the value of net rental losses was -2.3% lower resulting in an overall position of $3.628 billion in net rental losses claimed over the year. The $3.628 billion in rental losses over the year was the lowest value of overall losses since 2003-04.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank">CLICK TO ENLARGE</a>
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank"><img src="https://www.urban.com.au/images/2017/04/21/rsz_pct_of_individuals.png" width="700" height="425"></a>
Over the 2014-15 financial year, 15.7% of individuals claimed net rent. Overall, 6.0% of individuals claimed a net rent profit, and 9.7% of individuals claimed a loss.
The data also highlights that a relatively small proportion of individuals actually own an investment property, but the portion is growing. In the 2004-05 financial year, 13.6% of individuals claimed net rent. In 1994-95, the figure was 11.3%.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_net_rental_profit.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_net_rental_profit.png" width="700" height="425">
The above table breaks down the proportion of total individuals that are claiming a net rental profit or loss by their age.  Individuals aged 70 to 74 years of age are the most likely to be claiming a net rental profit while individuals aged between 50 and 54 years of age are the most likely to be claiming a net rental loss.
If we look at the proportion of total net rental loss/profit claimants by age group, the trends are quite interesting.  Less than a quarter (24.4%) of those individuals claiming a net rental profit are less than 45 years of age.  Conversely, almost half of those individuals claiming a net rental loss over the year were under 45.   The table shows that as an individual ages, they are increasingly less likely to be claiming a net rental loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_average_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_average_net_rental.png" width="700" height="425">
Looking at the average net rental profit/loss by age group shows that older individuals are likely to claim greater net rental profits.  At the same time, individuals aged between 50 to 54 years of age are likely to be claiming the greatest losses.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_loss_by_income.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_loss_by_income.png" width="700" height="425">
Individuals with a taxable income of between $500,001 and $1 million are most likely to be claiming a net rental profit while individuals earning between $40,000 and $50,000 are the least likely to claim net rental profits.  In terms of net rental losses, 23.8% of all individuals with taxable incomes between $250,001 and $500,000, as well as $500,001 and $1 million, are claiming net rental losses.  As taxable incomes increase, the data shows that these individuals are overall more likely to own rental properties and therefore claim either a net rental profit or loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" width="700" height="425">
Looking only at those individuals claiming a net rental profit or loss, the most likely to be claiming either have a taxable income of $100,001 to $150,000.  The least likely income range to be claiming a net rental loss or profit are those with a taxable income of more than $1 million.The above table shows the average net rental profit or loss claimed by taxable income ranges. People with a higher taxable income generally receive both the greatest average net rental profits and net rental losses.  
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" target="_blank">CLICK TO RESIZE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" width="700" height="425">
Previous data has shown that relatively few people sit in the higher taxable income brackets however, those that do and own an investment property enjoy substantially greater average profit or loss from those rental properties.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_2012-2013.png" target="_blank">CLICK TO EXPAND</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_2012-2013.png" width="700" height="425">
The final table highlights the number of individuals with interests in rental properties over the three most recent years along with how many properties they have an interest in. Overwhelmingly most people that have an interest in a rental property have an interest in only one with 90.3% of individuals having an interest in two or fewer rental properties.  
Over the most recent year, the number of individuals with an interest in five properties has recorded the greatest growth (7.4%) followed by: six or more properties (5.3%), four properties (4.5%), three properties (4.0%), two properties (3.4 properties) and one property (1.7%).
The data provides great insight into the characteristics of property investors.  The data shows that just under 16% of individuals are property investors and, over recent years, the number claiming a net rental loss has been relatively unchanged.  
Furthermore, as interest rates have fallen, relatively fewer individuals are claiming a net rental loss.  As you would expect, people in the middle of their working life are most likely to be claiming net rental losses and older individuals are most likely to be earning a profit from their rental property.  Those on higher incomes tend to claim higher average net rental profits and losses.  
Finally, for most Australians that own a rental property, they only own one. However, individuals with a greater number of investment properties have been experiencing faster growth than those with relatively few properties over recent years. With interest rates having fallen even further since June 2015 we would anticipate that the total value of net rental losses has also reduced.  At the same time we have seen investment lending become more active since mid-2015. 
It will be interesting to see if that reflects a greater number of individuals owning investment properties, or those that already own investment properties buying more.  We will have to wait until next year’s data to see how this plays out.
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The number of individuals claiming a net rental loss has flat-lined over recent years: Cameron Kusher

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Data recently released by the ABS shows that household net worth has increased substantially over recent years however, household debt is also climbing to new record highs.
The ABS’ recent release on finance and wealth for the December 2016 quarter showed that the net worth of Australian households was $9.405 trillion. 
This comprised $11.710 trillion in assets minus $2.306 trillion in liabilities (including share capital). 
Over the 12 months to December 2016, net worth has increased by 8.3% with asset values increasing by 7.9% and liabilities increasing by 6.4%. 
The data breaks out the value of residential land and dwellings which as at the end of 2016 was valued at $6.114 trillion having increased by 8.3% over the year. 
Residential land and dwellings accounts for 52.2% of total household assets.
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Using the data that the ABS publishes on wealth, the Reserve Bank (RBA) publishes a number of finance ratios for households comparing debt and assets to disposable incomes.
At the end of 2016, the ratio of household debt to disposable income was recorded at 188.7%, the highest on record and rising by 1.6 percentage points over the quarter and 3.1 percentage points over the year. 
The ratio of housing debt to disposable income was recorded at 133.8% which was also a record high. 
Based on this data, 70.9% of total household debt was housing debt. 
Over the quarter, housing debt increased by 1.5 percentage points and was 4.5 percentage points higher over the year.
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While the ratios of household and housing debt to disposable incomes is at record-high levels, so too are the ratios of household and housing assets to disposable incomes. 
The ratio of housing assets to disposable incomes sits at 910.6% having increased by 23.2 basis points over the quarter and 42.2 basis points over the year. 
Meanwhile, the ratio of housing assets to disposable income sits at 500.4% having increased by 18.2 basis points over the quarter and 23.8 basis points over the year. 
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Comparing household debt to assets results in a ratio of 20.7% while the figure for housing debt to housing assets is 26.7%. 
This indicates that although household and housing debt is at an historic high level, the value of the assets that this debt is held against is also higher than it has ever been. 
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The data within this report should be viewed with some caution because it is not a granular analysis; so while the national figures may show a strong financial position, at smaller geographies, particularly where dwelling values are falling, the position is likely to be dramatically different. 
With regard to debt, the figure is measured as a national measure and includes those households that are renting and those that own a home but carry no housing debt.
Some households have held their homes for many years and paid down a substantial amount of the debt on the home. 
For those that have either recently purchased, bought at the peak of a market which has since declined or those using interest-only mortgages they are unlikely to be in such a strong position as the national figures indicate. 
Those that don’t own a property asset are also likely to have substantially less household assets than those that do own a home.
Overall household debt is higher than it has ever been and although asset values are also at a record high, there remains concerns about how healthy it is to have such high levels of private debt. 
Furthermore, high debt, particularly for recent purchasers of residential properties, creates risks in the event of a housing market downturn which could see home owners enter into a period of negative equity. 
Especially with the heightened level of investor purchasing recently, investors have demonstrated a greater willingness to sell at a loss because that loss can be offset against future gains. 
Those that own owner occupied property do not enjoy a similar ability to offset these losses and are potentially much more financially vulnerable in the event of a housing market downturn. 
The high level of household debt is also expected to limit the ability for the RBA to lift interest rates suggesting that a neutral cash rate setting will be lower than it has been in the past.
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Household net worth sits at $9.406 trillion: Cameron Kusher 

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Building activity data released by the ABS showed there were more newly built units completed over the December 2016 quarter than houses, the first time on-record this has occurred.
The number of new dwellings approved for construction has recently fallen from historically high levels which will over time result in fewer commencements and completions moving forward. 
The latest building activity data for the December 2016 quarter, showed that dwelling commencements and completions were actually higher over the quarter. 
Meanwhile, the number of dwellings under construction and the number of dwellings approved but awaiting commencement fell.
Over the December 2016 quarter there were 28,690 new houses that commenced construction and 27,887 new units which commenced construction. 
While new house commencements were 3.4% lower, new unit commencements increased by 3.9%. 
Since the end of 2016 there has been a substantial decline in house and unit approvals so it is reasonable to expect that dwelling commencements will follow the lead of approvals and start to trend lower over the coming quarters.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.27%20pm.jpg" target="_blank">Click to enlarge</a>
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In terms of dwelling completions, 28,102 new houses and 28,527 new units completed construction over the December 2016 quarter. 
This marked the first quarter on record that more new units had been completed than new houses. 
New house completions rose by 0.7% over the quarter while new unit completions surged 26.1% to a new record-high.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.34%20pm.jpg" target="_blank">Click to enlarge</a>
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At the end of the quarter, there were 64,332 new houses under construction and 152,635 new units under construction. 
There has been little change in the number of houses under construction over recent quarters while new unit construction remains historically high but has begun to fall. 
Interestingly when you look at the individual state data, the number of new units under construction in New South Wales is continuing to climb to new historic highs while the number under construction in Victoria and Queensland, where concerns around inner city unit supply are more pronounced, is now clearly trending lower.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.39%20pm.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/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.39%20pm.jpg" alt="">
Finally if we look at the number of new houses and units approved for construction but not yet commenced, there were 9,814 houses and 29,044 units yet to start the construction phase. 
The number of new houses approved but not commenced increased by 5.0% over the quarter while the number of new units fell by 11.7% from its historic high the previous quarter.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.43%20pm.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/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.43%20pm.jpg" alt="">
With dwelling approvals having fallen quite significantly from record high levels since December 2016 it is reasonable to expect that there will be fewer commencements going forward, particularly for units. 
Completions on the other hand could remain high for some time given that there are still many houses and units under construction. 
New house and unit completions have averaged 43,497 a quarter over the past five years, even if there were no additional new commencements based on this run-rate it would take almost five quarters for the stock to clear.
It is also important to note the fact that the number of units under construction has started to decline in Victoria and Queensland while it continues to rise in New South Wales. 
Commencements data shows that the number of starts have also fallen in Victoria and Queensland while they continue to trend higher in New South Wales. 
The pull-back in Victoria and Queensland for commencements is probably related to unit oversupply concerns in the inner city areas of the state capitals. 
In fact the rate of growth for units is already dramatically lagging that of houses in Melbourne and Brisbane while the same trends are not evident in Sydney.
It is clear that the market is responding to the heightened level of dwelling construction over recent years. 
While it appears that in most states commencements are now falling they have continued to climb in New South Wales which ultimately is positive given it is the state with the largest overall undersupply of housing.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Newly built apartments outnumber houses for the first time on record: Cameron Kusher

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GUEST OBSERVER
It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6 percent in February; the largest fall in lending for investment purposes since September 2015. 
While this is only one month of data, it is likely that investment lending has moved, or is moving through the peak of the cycle.
The February 2017 housing finance data which was released today by the Australian Bureau of Statistics (ABS). 
The data showed that in February 2017 there was $32.9 billion worth of housing finance commitments which was -2.7 percent lower over the month but 3.5 percent higher compared to the value in February 2016. 
To highlight how much lending is going to housing it is interesting to note that five years earlier, $20.4 billion worth of housing finance commitments was recorded in February 2012.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-1-1.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/2017/04/12/chart-1-1.jpg" alt="">
The $32.9 billion of housing finance commitments in February 2017 consisted of $20.0 billion to owner occupiers and $12.9 billion to investors. 
The value of lending to owner occupiers has changed very little over the past eight months and was -0.5 percent lower over the month and -2.3 percent lower year-on-year. 
The value of lending to investors fell by -5.9 percent in February but is still 14.0 percent higher year-on-year. 
The -5.9 percent monthly fall in the value of lending to investors was the largest monthly fall since September 2015 and is a dramatic change in direction for investment lending which has been trending higher since January 2016.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-2-1.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/2017/04/12/chart-2-1.jpg" alt="">
Owner occupier housing finance commitments are split into four types: construction of dwellings ($1.8 billion), purchase of new dwellings ($1.0 billion), refinancing of established dwellings ($6.2 billion) and purchase of established dwellings ($11.0 billion).  Construction of dwellings and purchase of new dwellings rose over the month and were also the only commitment types higher year-on-year. 
Lending for refinances in particular have been in a steady decline since December 2015, at that time there were $7.3 billion in commitments over the month with the $6.2 billion in February 2017 tracking -15.6 percent lower. 
This does seem a little counter-intuitive given that since December 2015 there has been substantial repricing of mortgage rates since that time and investors have returned to the market which could have involved refinancing of their owner-occupied properties to fund the investment.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-3-1.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/2017/04/12/chart-3-1.jpg" alt="">
Lending to investors slowed markedly in February 2017 with the two components: new construction ($1.0 billion) and established dwellings ($11.9 billion) each recording a fall over the month. 
Lending for construction was -13.6 percent lower in February while lending for established dwellings fell by -5.2 percent. 
The decline in housing finance commitments predates the new policy announcement from APRA to lenders a week ago notifying them of changes to lending policies, in particular for interest-only lending which is popular amongst investors. 
Although the letter was only recently published, the discussions about the lending policy changes have probably been ongoing with lenders for a number of months and may help to explain the fall in investor lending in February. 
Over the next few months it will be interesting to see the direction of lending to investors, if it falls like it did after April 2015, it could lead to a slowdown in the rate of value growth in the housing market although there is little evidence of this occurring as yet.
Click to enlarge
<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/2017/04/12/chart-4-1.jpg" alt="">
The above chart shows the value of lending for new housing compared to the value for existing housing, note that refinances are excluded from this data.  New housing is defined as: owner occupier construction of dwellings, owner occupier purchase of new dwellings and investment construction of dwellings which totalled $3.9 billion in February 2017 compared to $22.9 billion for existing housing. 
New housing accounted for 14.5 percent of total housing finance commitments over the month. Even though we are in the midst of a housing construction boom there has been no substantial increase in the value of finance commitments for new housing over recent years. Keep in mind though that there are substantially more established properties than new with the 9.8 million dwellings nationally only increasing by 1.8 percent over the past year.
The next few months of housing finance commitments data will be interesting to follow to see if the softness in investor demand continues.  Also with many lenders repricing mortgage rates since February there may be an increase in refinance activity which has been slowing since the end of 2015. 
Overall the nature of the mortgage market is changing with higher interest rates and a fresh round of macroprudential controls recently implemented. The next few months should provide insight into whether these tools can ultimately slow some of the current exuberance being shown by investors.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Investor lending slows in February before the APRA crackdown was announced

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Over recent years the level of investor participation in the national housing market has hit historic high levels and at the same time, housing finance commitments to owner occupier first time buyers has shrunk. 
As an example, January 2017 housing finance data shows that based on the total value of housing finance commitments, a record-low 7.1% of commitments were to owner occupier first home buyers while 39.0% of the value of all commitments were to investors.
Click to enlarge
<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/2017/03/24/chart-1-2.jpg" alt="">
The above chart looks at the proportion of the total value of housing finance commitments going to owner occupier first home buyers and investors nationally.  As the level of lending to investors has increased over recent years it has done so at the expense of owner occupier first home buyers. 
Except for briefly in 1992, investors have consistently outweighed owner occupier first home buyers in terms of housing finance demand.  The only time first home buyer lending has got close to that of investors was in 2008 and 2009 during the financial crisis. 
At that time, investors were fearful and first home buyers were receiving substantial stimulus from the Federal Government which led to heightened housing demand to those that don’t already own property.
It is a similar story surrounding first home buyer activity being much lower than that of investors across the individual states and territories.  Furthermore, in 2008 and 2009 the combination of stimulus and investor caution resulted in a lift of first home buyer activity at the expense of investors. 
The data here has been paired between housing finance and lending finance data.  We have multiplied the average first home buyer loan size by their number of loans to determine the value of first home buyer loans and taken the investor loan data from lending finance.  Note that the following figures include refinances.
<a href="https://www.propertyobserver.com.au/images/2017/03/24/chart-2-3.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/2017/03/24/chart-2-3.jpg" alt="">
In January 2017, an historic low 3.4% of all housing finance commitments in New South Wales were to owner occupier first home buyers compared to 46.9% of total lending to investors. 
The 46.9% of housing finance commitments to investors was their highest level since July 2015.
<a href="https://www.propertyobserver.com.au/images/2017/03/24/chart-3-3.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/2017/03/24/chart-3-3.jpg" alt="">
Victorian investors accounted for 37.5% of the total value of housing finance commitments in January 2017 compared to 7.7% of the total value to owner occupier first home buyers.  The level of activity from first home buyers is currently at an historic low level while investor participation is sitting at levels not seen since July 2015.
<a href="https://www.propertyobserver.com.au/images/2017/03/24/chart-4-3.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/2017/03/24/chart-4-3.jpg" alt="">
Owner occupier first home buyers are more active in Queensland than they are in New South Wales or Victoria however, they still only accounted for 10.8% of the value of housing commitments in January 2017 compared to investors accounting for 31.6%.  Housing affordability has not deteriorated in Queensland to the extent it has in New South Wales and Victoria however, first home buyers continue to be well and truly outnumbered by investors.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-5-2.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-8414" src="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-5-2.jpg" alt="" width="1685" height="596">
In January 2017, owner occupier first home buyers in South Australia accounted for 6.9% of the value of housing finance commitments compared to investors accounting for 30.1%.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-6-1.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-8415" src="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-6-1.jpg" alt="" width="1687" height="599">
Owner occupier first home buyers in Western Australia accounted for 14.3% of the total value of housing finance commitments in January 2017 compared to investors that accounted for 27.3%.  Dwelling values are falling across most regions of the state and investor borrowing still far outweighs first home buyers. You would think that falling prices would scare investors away from purchasing and create an opportunity for first home buyers but that hasn’t really occurred in Western Australia over the past few years.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-7.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-8416" src="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-7.jpg" alt="" width="1688" height="603">
In January 2017, owner occupier first home buyers in Tasmania accounted for 10.3% of total housing finance commitments compared to investors that accounted for 27.6%.  The proportion of lending to investors in Tasmania is at its highest level since April 2015.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-8.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-8417" src="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-8.jpg" alt="" width="1706" height="603">
Northern Territory investors accounted for 38.8% of the value of all housing finance commitments in January 2017 compared to owner occupier first home buyers who accounted for 8.3%.  Despite the fact that dwelling values are falling across most of the Northern Territory, fist home buyer volumes remain low and investors remain quite active.  This is probably due to the fact that in Darwin in particular, the population tends to be more transient than in other parts of the country.
<a href="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-9.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-8418" src="https://blog.corelogic.com.au/wp-content/uploads/2017/03/chart-9.jpg" alt="" width="1687" height="602">
Across the Australian Capital Territory in January 2017, 9.1% of the total value of housing finance commitments was to owner occupier first home buyers compared to 35.5% to investors.
The national and individual state and territory data shows that historically the only way to substantially boost first home buyer participation has been at the expense of investors, as occurred in 2008/09.  At the time this didn’t occur through a policy specifically targeted at slowing investor demand it happened more so organically due to significant first home buyer stimulus and investor fears at the time.  Keep in mind that these policy choices also led to, in certain areas, a substantial increase in dwelling values.
Including in 2008/09, investors have consistently outweighed owner occupier first home buyers in terms of new mortgage borrowing. 
This shouldn’t really surprise anyone given that most investors already have a residential property asset and many of which use at least a portion of the equity in that asset to fund the investment.  First home buyers don’t have the existing foothold in the housing market and are always going to find it difficult to compete with borrowers that already have assets and equity. 
Unfortunately the ABS does not publish data on the number of loans to investors so we can’t see a true picture of loans written rather just the value lent.  Keep I mind that investors that already own homes generally have the ability to borrow more than first home buyers and in-turn may typically take out larger loans than first home buyers.
Based on the data is seems that the way to get more first home buyers entering into the market is to do it at the expense of investors.  If you can increase purchasing by first home buyers there will be, at least initially, less demand for rental accommodation. 
Longer-term though, the population grows and people age so deterring investment may have greater repercussions for the housing market. Keep in mind though that heightened housing market activity from first home buyers that don’t own housing assets and have no housing equity may actually create more instability in the housing market.
There is no easy fix to encourage higher levels of housing market participation from first home buyers but the data indicates a heightened level of activity from this market segment is most likely to occur via a reduction in demand from the investor segment.   While people that don’t already own homes may see this as a great solution we should be cautious as it may have larger long-term effects on housing supply and housing market stability. 
I don’t believe that the balance between first home buyers and investors is currently right and we should look at ways to cool some of the market’s current investment exuberance but we should also be cautious about encouraging excess demand from first home buyers who may find it more difficult to repay mortgages once interest rates start to increase.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Investors historically outweigh first home buyers but gap widens: Cameron Kusher

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GUEST OBSERVER
Interest rate cuts and the return of lending to investors over the past year have seen a re-emergence of investors as a dominant force in the national housing market.
At the end of last week the Australian Bureau of Statistics (ABS) published housing finance data for January 2017 and it showed that at that time, demand from the investment segment of the market was continuing to surge.  Pairing the housing finance data with the Reserve Bank’s (RBA) lending aggregate data provides deeper insight into housing investor behaviour. 
The January 2017 housing finance data showed that over the month, investors committed to a total of $13.8 billion in finance for investment properties.  The figure represented a 4.2 percent rise over the month and a 27.5 percent increase year-on-year (the largest annual increase since August 2014). 
The first chart shows that the value of investor housing finance commitments remains below its previous peak but has ramped-up significantly over the past 12 months.  In fact, the value of investor housing finance commitments in January 2017 was just -5.3 percent lower than its historic peak in April 2015. 
<h3>Monthly value of investor housing finance commitments</h3>
Click to enlarge
<div>
<h3><img src="https://www.urban.com.au/images/2017/03/22/2017-03-20-image1.png" alt=""></h3>
 
The second chart highlights how most of the investor housing finance commitments are flowing to established homes rather than new homes.  This isn’t really a surprise when you consider that the amount of established housing stock is substantially greater than new stock and new housing typically has a price premium over existing stock.  Over the month, $1.2 billion in commitments were for new construction compared to $12.6 billion for established housing stock.
<h3>Monthly value of investor housing finance commitments by property type</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image2.png" alt="">
The third chart comes from data published by the RBA on investor housing credit which represents the total amount outstanding to mortgage lenders for the purposes of investor housing.  In January 2017, investor credit expanded by 0.6 percent to be 6.6 percent higher over the year. The monthly change was actually the lowest it has been in four months while the annual change was the highest it has been in 10 months. 
Much like the housing finance data, the credit data shows the impact of APRAs recent curbs to investor credit growth which have slowed growth however, more recently credit has once again started to expand. 
<h3>Monthly and annual change in investor housing credit to Australian lenders</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image3.png" alt="">
The final chart shows the monthly value of investor credit outstanding to Australian lenders.  At the end of January 2017, the RBA reports that there was $572.2 billion in investor credit outstanding to Australian lenders.  This figure accounted for 34.9% of all housing credit outstanding ($1.637 trillion) and 21.5 percent of total outstanding credit.  The chart shows a significant rise in investor housing credit, in fact, two decades ago investor credit represented 21.8% of total housing credit and 8.7 percent of all credit.
<h3>Monthly value of investor housing credit to Australian lenders</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image4.png" alt="">
All of the data presented highlights that the latest data we have shows demand from the investor segment in the housing market continues to surge.  With the substantial increase in dwelling values in Sydney and Melbourne over recent years, home owners are able to utilise the equity in their principal place of residence to purchase investment properties.  It is clear from the data that many are doing so. 
While investor activity is rampant, the proportion of total housing finance commitments to owner occupier first home buyers is at an historic low.  On one hand it is positive that home owners are investing on the other hand they can continue to outbid those people that don’t already own homes further locking many potential buyers out of the housing market.
It is anticipated that over the coming months we will see further tightening of lending policies to investors with some lenders approaching APRAs 10 percnet speed limit.  Should this occur it is likely to result in a moderate slowing of demand from the investment segment, at least temporarily like we saw in mid-2015 and early 2016.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
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Investor lending gathers pace as dwelling values surge higher: Cameron Kusher

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With recent record high levels of new housing construction and investor mortgage activity, the supply of housing stock available for rent is climbing and is expected to continue to increase.
Australia has a growing population and the people moving to Australia need to be housed somewhere.  
Over recent years the uplift in population growth has not been met with a commensurate rise in property sales. Rental advertisement counts suggest that the population growth is increasingly being housed via investment housing (rental accommodation) which aligns with the lift in investor housing finance commitments over recent years.
Over the 12 months to January 2017, there were 362,708 houses advertised for rent and 287,233 units advertised for rent nationally. 
The number of rental advertisements over the past year was 8.7 percent higher for houses and 9.3 percent higher for units.  The rental market is currently seeing historic low rates of rental growth and with the amount of rental accommodation ramping up it is easy to see why.  Keep in mind this data is only those properties advertised for rent and not every rental property will be advertised for rent each year.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image1.png" width="571" height="187">
The two tables within this report highlight the council areas that have seen the greatest increases and decreases in rental advertisements over the past year.  Note that we have only included council areas that have had at least 1,000 rental advertisements over the 12 months to January 2017.
Click to enlarge
 <img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image2.png" width="561" height="508">
Western Australia council areas feature heavily on the list of regions that have seen the greatest increase in rental advertisements over the year, many of which are located in Perth.  Investor activity has been sluggish in WA so this may indicate that as the economy has weakened and people have migrated away from WA, perhaps home owners are looking to rent out their home rather than selling into weak market conditions. 
A number of NSW regions are also featured on the list and this is probably more reflective of the ramping-up of housing supply purchased by investors.
Of those regions with at least 1,000 rental advertisements over the past year, only 17 council areas have actually seen a decline in rental advertisements over the year.  Two of the improving housing markets for value growth, Canberra and Hobart, are amongst these 17 council areas. 
The areas with less rental stock advertised than a year ago also tend to be more slanted towards regional areas rather than capital cities.  
This is not surprising given that housing supply has largely been increasing in capital cities rather than regional markets.  Despite the housing construction boom in Sydney at the moment, Kogarah, Warringah and Manly have recorded fewer properties advertised this year compared to last year, signaling tighter rental conditions.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image3.png" width="564" height="506">
With a record high number of new dwellings still under construction, most of which are units and many of which have been purchased by investors, it is anticipated that the number of properties advertised for rent will continue to rise. 
The impact of this is that rental growth is likely to remain dampened and those in the rental market in most regions will have an increasing number of properties to choose from.  For owners of investment properties and property managers should be mindful of their local rental conditions, and set their weekly rents accordingly to maximize their occupancy as well as income. 
Landlords in areas where the supply of rental properties has shown a rise may find they need to hold their rents steady or in fact, provide a discount on their rental expectations in order to keep or attract tenants.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>
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Rising rental listings signal ongoing softness across some rental markets: Cameron Kusher

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Cameron Kusher

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