<p>One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.</p>

<p>Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.</p>

<p>The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" /></p>

<p>Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.</p>

<p>Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.</p>

<p>The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.</p>

<p>"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" /></p>

<p>Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.</p>

<p>According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.</p>

<p>Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.</p>

<p>&nbsp;</p>

<p>FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.</p>

<p>Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.</p>

<p>Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.</p>


Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

<p>Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.</p>

<p>The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.</p>

<p>The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.</p>

<p>The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.</p>

<p><img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" /></p>

<p>The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;</p>

<p>PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.</p>

<p>Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.</p>

<p>A major focus of the design has been the public domain.</p>

<p>The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.</p>

<p>The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.</p>

<p data-end="239" data-start="66">Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.</p>

<p data-end="442" data-start="241">Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.</p>

<p data-end="661" data-start="444">Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.</p>

<p data-end="909" data-start="663">Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a></em></p>

<p data-end="1339" data-start="1019">Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a></em><br />
&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.</p>

<p data-end="843" data-start="497">At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.</p>

<p data-end="1109" data-start="848">The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.</p>

<p>"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.</p>

<p>The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.</p>

<p>Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.</p>

<p>The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.</p>

<p>The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.</p>

<p>The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).</p>

<p>Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.</p>

<p>Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.</p>

<p>The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.</p>

<p>There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

<p>While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

<p>The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.</p>

<p>While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.</p>

<p>It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.</em></p>


Every First Home Owner Grant for new property by state

<p>In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.</p>

<h2>What is NatHERS?</h2>

<p>NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.</p>

<h2>How NatHERS Ratings Work</h2>

<p>NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.</p>

<p>The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;</p>

<p>Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.</p>

<p><strong>Cost Savings:</strong> Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.</p>

<p><strong>Environmental Impact:</strong> Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.</p>

<p><strong>Improved Comfort: </strong>Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.</p>

<p><strong>Market Value and Desirability:</strong> Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.</p>

<p><strong>Compliance with Building Codes:</strong> NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.</p>


The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.</p>

<h3>Convenience and accessibility</h3>

<p>Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.</p>

<h3>Vibrant lifestyle and community</h3>

<p>One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.</p>

<h3>Enhanced security and maintenance</h3>

<p>Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.</p>

<h3>Live-work-play balance</h3>

<p>One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.</p>

<p>The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.</p>


alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe></p>

<h2>Who pays Stamp Duty?</h2>

<p>In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.</p>

<p>You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

<p style="line-height:1.38">Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.</p>


Ellen Walker

Off-the-plan property explained: What is stamp duty?

<html><body>
<p>The least understood, worst reported and most unfairly treated issue in residential real estate is foreign investment.</p>
<p>The degree to which a patchwork of half-truths, empty rhetoric and outright lies has come to be accepted by almost everyone as truth is quite startling.</p>
<p>All forms of investment in real estate have become demonized amid the increasingly hysterical “debate” about housing affordability, but especially foreign investment. </p>
<p>Politicians’ handling of the affordability issue has been taken directly from the Yes Minister playbook. The iconic British comedy series has provided the scripts for federal and state politicians seeking a convenient scapegoat for the affordability issue – someone they can attack to give the appearance they care, without costing votes. </p>
<p>Overseas investors are the perfect target because they are seen as filthy rich foreign bastards, so everyone dislikes them or at least envies them, and they don’t vote in Australian elections.</p>
<p>After two long and pointless federal parliamentary inquiries into housing affordability, the Federal Government decided to blame it all on foreign investors. This provided lots of opportunities for sabre-ratting and righteous speech-making, followed by a big clampdown on foreign buyers who break the rules. </p>
<p>State Governments seized the opportunity to not only blame foreign investors for high prices but also to extract still more revenue from the property investment sector by slapping extra taxes and other imposts on the dastardly foreigners. Media, of course, has lapped it up.</p>
<p>So thoroughly have foreign buyers been demonized that a recent public opinion survey found that most people blame foreign investors for rising property prices. Even in Perth, where house prices have been falling for four years, half of respondents claim foreigners are forcing their house prices to rise. That pretty much says it all.</p>
<p>The anecdotal evidence suggests that anyone who has bid at an auction in Sydney and Melbourne in recent years, and been out-gunned by someone of Asian appearance, has gone away complaining about foreign investors. They could be third generation Australians for all they know.</p>
<p>The NSW Government, which is more to blame for poor housing affordability than any other entity or group of individuals, has seized the opportunity to exploit the unpopularity of foreign investors by slugging them with further taxes, while claiming – rather remarkably - that it won’t affect the level of foreign buying in Sydney.</p>
<p>If that’s what they believe, then what’s the point of doing it? It’s a rhetorical questions – the answer, of course, is that it’s all about revenue-raising.</p>
<p>The mounting imposts on offshore buyers will deter them and that will cause high-rise projects to be cancelled, thereby reducing supply - one of the factors needed to improve affordability.</p>
<p>The craziest thing about the whole sorry issue is that foreign investors are such a small part of the overall buying market. The research indicates that offshore buyers account for less than 10 percent of residential sales. We’re being asked to believe that this tiny minority is somehow driving prices up everywhere, overpowering the more than 90 percent of buyers who are Australians. Are we really that weak and puny?</p>
<p>It’s likely suggesting that a Japanese sevens team with two players in the bin could defeat a 15-man Wallabies outfit.</p>
<p>Yet 54 percent of South Australians think foreigners are the greatest factor in forcing up property prices, even though prices have hardly moved in Adelaide; and 56 percent of Queenslanders have the same attitude, despite the absence of boom conditions in Brisbane.</p>
<p>Of course, it all depends how the survey is framed – also well-documented in the scripts of Yes Minister. Strange that this recent survey had little to say about negative gearing, another hugely-popular scapegoat. Seven out of 10 nationwide blame foreigners.</p>
<p>It shows, once again, how opinion surveys do little more than reflect the prevailing media view. Politicians and media keep telling the public that foreign buyers are forcing up prices - so that’s what most people think. It’s not as if the average citizen goes out and conducts their own research. They just believe what they read.</p>
<p>The proof that foreign buyers are unfairly blamed is this: both federal and state governments, as well as lenders, have been clamping down on foreign investment for the past two years. New taxes and charges have made it incredibly expensive for them to buy our real estate, while those who are deemed to have done the wrong thing have been forced to sell back the properties they acquired.</p>
<p>The level of foreign investment is falling significantly. But prices have continued to rise in Sydney and Melbourne.</p>
<p>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></p>
</body></html>

terryryder-YECXbqmri2

Level of foreign investment is falling significantly as foreigners are demonized: Terry Ryder

<html><body>
<p>The Melbourne suburb of Kensington is among the nation's top 10 fastest selling suburbs, according to Investar’s latest report.</p>
<p>The property data firm says that houses in Kensington spend 39 days on the market before sale.</p>
<table style="width: 473px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="98">
<p>Suburb</p>
</td>
<td valign="top" width="47">
<p>State</p>
</td>
<td valign="top" width="64">
<p>Postcode</p>
</td>
<td valign="top" width="65">
<p>Dwelling</p>
</td>
<td valign="top" width="72">
<p>Bedrooms</p>
</td>
<td valign="top" width="52">
<p>Days on market</p>
</td>
<td valign="top" width="77">
<p>Current median price</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Croydon Park</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2133</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>38</p>
</td>
<td valign="top" width="77">
<p>$412,500</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Kensington</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>3031</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>39</p>
</td>
<td valign="top" width="77">
<p>$775,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Bowden</p>
</td>
<td valign="top" width="47">
<p>SA</p>
</td>
<td valign="top" width="64">
<p>5007</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>40</p>
</td>
<td valign="top" width="77">
<p>$340,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Annandale</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2038</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>4</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$2,500,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Woolloomooloo</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2011</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$800,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Beecroft</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2119</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$1,350,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Fairlight</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2094</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Narraweena</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2099</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>43</p>
</td>
<td valign="top" width="77">
<p>$1,250,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Caulfield South</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>2162</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>44</p>
</td>
<td valign="top" width="77">
<p>$1,100,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Allambie Heights</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2100</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>45</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
</tbody></table>
<p>A two bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-kensington-125297710" target="_blank">16 Altona Street</a> (above) spent 26 days on the market before being sold recently for $1.11 million.</p>
<p>Another example is a two bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-kensington-125057130" target="_blank">33 Chelmsford Street</a> (below) that spent 37 days on the market before being sold for $903,000.</p>
<p><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/2017/06/14/33%20Chelmsford%20Street.jpg" alt=""></p>
<p>The median price of houses in Kensington is $960,000, which is an increase of $55,000 from last year’s median price of $905,000.</p>
<p>Kensington is a popular suburb with 894 more website listing visits than most other suburbs in Victoria.</p>
<p>Independent residents make up the majority of residents in Kensington.</p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Kensington among the fastest selling Melbourne suburbs

<html><body>
<p>Croydon Park is amongst the fastest selling suburbs across Australia, according to Investar’s latest report.</p>
<p>The property investment firm says that units in Croydon Park spend an average of 38 days on the market before being sold.</p>
<table style="width: 473px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="98">
<p>Suburb</p>
</td>
<td valign="top" width="47">
<p>State</p>
</td>
<td valign="top" width="64">
<p>Postcode</p>
</td>
<td valign="top" width="65">
<p>Dwelling</p>
</td>
<td valign="top" width="72">
<p>Bedrooms</p>
</td>
<td valign="top" width="52">
<p>Days on market</p>
</td>
<td valign="top" width="77">
<p>Current median price</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Croydon Park</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2133</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>38</p>
</td>
<td valign="top" width="77">
<p>$412,500</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Kensington</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>3031</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>39</p>
</td>
<td valign="top" width="77">
<p>$775,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Bowden</p>
</td>
<td valign="top" width="47">
<p>SA</p>
</td>
<td valign="top" width="64">
<p>5007</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>40</p>
</td>
<td valign="top" width="77">
<p>$340,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Annandale</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2038</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>4</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$2,500,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Woolloomooloo</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2011</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$800,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Beecroft</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2119</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$1,350,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Fairlight</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2094</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Narraweena</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2099</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>43</p>
</td>
<td valign="top" width="77">
<p>$1,250,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Caulfield South</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>2162</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>44</p>
</td>
<td valign="top" width="77">
<p>$1,100,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Allambie Heights</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2100</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>45</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
</tbody></table>
<p>A example is a recent sale at <a href="https://www.realestate.com.au/sold/property-unit-nsw-croydon+park-124943686" target="_blank">8/13 Brighton Avenue</a>, (above) where the property was sold within 40 days for $440,000.</p>
<p>Another example is a recent sale at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-croydon+park-124984558" target="_blank">25/1 Fabos Place</a>, (below) where the property was sold within a week for $420,000.</p>
<p><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/2017/06/14/25_1%20Fabos%20Place.jpg" alt=""></p>
<p>The median price of a unit in Croydon Park is $610,000, which is a increase from last year’s median price of $542,500.</p>
<p>Properties in Croydon Park in high demand with more website property listing visits per property than other suburbs in NSW</p>
<p>Established and mature residents make up 16 percent of the residents in Croydon Park.</p>
</body></html>

Croydon Park units spend just 38 days on market before sale

<html><body>
<p>Montagu Bay is the fastest locality for houses over the past year, according to CoreLogic’s latest report.</p>
<p>The property data firm for units South Penrith and Wyoming sells the fastest.</p>
<p>Low interest rates coupled with higher levels of demand for housing has seen property sales in some areas take off faster than in others.</p>
<p>CoreLogic research analyst Cameron Kusher said that given mortgage rates have fallen over recent years, certain cities, namely Sydney and Melbourne, have seen heightened demand and a rapid rate of sale for properties.</p>
<p>(Note - today’s analysis only calculates where there were at least 10 observations of paired listings and subsequent sales over the year and is calculated on private sales excluding properties advertised for auction due to the selling time for an auction is often better described as a marketing period that typically lasts for around six weeks.</p>
<p>The figure is calculated by the difference from the date at which a property is first listed compared to its contract date).</p>
<p>Montagu Bay in Hobart now has the shortest median days on market for houses over the past year at 5 days.</p>
<p>For units, South Penrith and Wyoming in Sydney has the shortest median days on the market at 7 days.</p>
<p>The most obvious trend is that the majority of suburbs listed are within capital cities. This is generally the case across each state and territory.</p>
<p>The CoreLogic analysis highlights that housing market conditions are generally stronger in the capital cities than they are in regional areas.</p>
<p>Mr Kusher said, “In most instances, the suburbs that are not in capital cities are located in regions close to the capital city, highlighting how housing demand has rippled outwards from the capital cities as prices rise.”</p>
<p>Although Sydney and Melbourne have grabbed the headlines over recent years for their comparatively strong rates of capital growth, in other capital cities there are suburbs experiencing a very rapid rate of sale.</p>
<p>For example, Brisbane values have increased by less than 5% over the past year but each of the suburbs listed for houses have a median days on market figure of less than 20 days.</p>
<p>Mr Kusher said, “With mortgage rates and the number of properties available for sale remaining low we would anticipate that the current rapid rate of sale in Sydney, Melbourne, Hobart and Canberra will remain low, however there have been some early signs that stock levels are starting to rise which may lead to an easing in the perceived urgency to buy across some markets.</p>
<p>“Outside of these areas, suburbs in sought after locations with relatively low stock available for sale are also likely to see transactions occurring at a fairly rapid pace, especially if vendors ensure that they are setting realistic initial listing prices.”</p>
<p>A three bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-nsw-wyoming-125219030" target="_blank">11/12-20 Kinarra Avenue</a>, Wyoming (above) was sold in April this year for $428,000.</p>
<p>Similarly a two bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-wyoming-123534226" target="_blank">63 Jarrah Drive</a>, Wyoming (below) was sold in March this year for $215,000.</p>
<p><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/2017/06/08/63%20Jarrah%20Drive.jpg" alt=""></p>
</body></html>

Where are Australia's fastest selling suburbs? CoreLogic

<html><body>
<p>The Sydney suburb of Fairlight is among the top 10 fastest selling suburbs across Australia, according to Investar’s latest June report.</p>
<p>Units in Fairlight stay on the market for 42 days before being sold.</p>
<p>Recently a two bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-nsw-fairlight-125559594" target="_blank">3/36 Rosedale Avenue</a> (above) was listed for 14 days before it was sold for $900,000.</p>
<p>Similarly a three bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-nsw-fairlight-125191178" target="_blank">8/52 Griffiths Street</a> (below) was listed for 22 days before it was sold for $1.51 million.</p>
<p><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/2017/06/16/8_52%20Griffiths%20Street.jpg" alt=""></p>
<p>Suburb</p>
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="98"> </td>
<td valign="top" width="47">
<p>State</p>
</td>
<td valign="top" width="64">
<p>Postcode</p>
</td>
<td valign="top" width="65">
<p>Dwelling</p>
</td>
<td valign="top" width="72">
<p>Bedrooms</p>
</td>
<td valign="top" width="52">
<p>Days on market</p>
</td>
<td valign="top" width="77">
<p>Current median price</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Croydon Park</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2133</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>38</p>
</td>
<td valign="top" width="77">
<p>$412,500</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Kensington</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>3031</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>39</p>
</td>
<td valign="top" width="77">
<p>$775,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Bowden</p>
</td>
<td valign="top" width="47">
<p>SA</p>
</td>
<td valign="top" width="64">
<p>5007</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>40</p>
</td>
<td valign="top" width="77">
<p>$340,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Annandale</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2038</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>4</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$2,500,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Woolloomooloo</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2011</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>Studio and 1</p>
</td>
<td valign="top" width="52">
<p>41</p>
</td>
<td valign="top" width="77">
<p>$800,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Beecroft</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2119</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$1,350,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Fairlight</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2094</p>
</td>
<td valign="top" width="65">
<p>Unit</p>
</td>
<td valign="top" width="72">
<p>2</p>
</td>
<td valign="top" width="52">
<p>42</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Narraweena</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2099</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>43</p>
</td>
<td valign="top" width="77">
<p>$1,250,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Caulfield South</p>
</td>
<td valign="top" width="47">
<p>VIC</p>
</td>
<td valign="top" width="64">
<p>2162</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>44</p>
</td>
<td valign="top" width="77">
<p>$1,100,000</p>
</td>
</tr>
<tr>
<td valign="top" width="98">
<p>Allambie Heights</p>
</td>
<td valign="top" width="47">
<p>NSW</p>
</td>
<td valign="top" width="64">
<p>2100</p>
</td>
<td valign="top" width="65">
<p>House</p>
</td>
<td valign="top" width="72">
<p>3</p>
</td>
<td valign="top" width="52">
<p>45</p>
</td>
<td valign="top" width="77">
<p>$900,000</p>
</td>
</tr>
</tbody></table>
<p>The median price of a unit in Fairlight is $1,317,500, which has increased compared to last year’s median price of $1.22 million.</p>
<p>Fairlight has 3252 website listing visits compared to most suburbs of NSW’s 797.</p>
<p>The majority of residents are established, independent residents accounting for 22% of the residents in the area.</p>
</body></html>

Sydney's Fairlight among top 10 quickest selling suburbs

<html><body>
<p>GUEST OBSERVER</p>
<p>Across house sales over the past 12 months, Tasmania recorded the highest proportion of stock turning over with 5.6% of all houses in the state selling. Conversely, Western Australia saw the lowest proportion of turnover with just 4.0% of all houses selling over the past year. </p>
<p>The current lower volume of housing stock turnover highlights why caution should be taken when interpreting median sale prices. </p>
<p>With such a small fraction of housing actually transacting over a given period, median prices can be biased. Furthermore, median prices may not be reflective of the whole market. When making a comparison between periods they may compare two very different bundles of housing types and quality.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.17.14%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.17.14%20AM.png" alt=""></p>
<p>Concerned about housing stock levels, REINSW President John Cunningham said, “The results signal warning bells for the housing industry. It shows just how little has been transacted over the past year.”</p>
<p>“We know from a variety of property data sources that stock levels are steadily declining and a key reason why the affordability issue presents a bigger picture problem, particularly for Sydney and Melbourne.</p>
<p>“When we have stock on market, it keeps the property market competitive and in balance. Without stock we see less vibrancy and activity across the market and much more buyer competition taking place as opposed to activity between properties.” Ultimately, he said, “the knock-on effect damages the supply and demand chain.”</p>
<p>Lower housing turnover is being influenced by a variety of factors. “Advertised stock levels remain low across those cities where capital gain conditions are strong. Additionally, high transactional costs, which are based on a percentage of the selling/purchasing price, have become a larger disincentive across those markets where values have shown a material rise.”</p>
<p>Highlighted in the adjacent tables, it shows the five suburbs in each state which have seen the greatest turnover of houses over the past year. Only those suburbs that have at least 500 houses have been included on the list.</p>
<p>Zuccoli in Darwin had the highest proportion of stock turning-over across the country with 38.5% of all houses in the suburb selling over the past year. Clyde North in Melbourne had the second- highest level of turnover with 17.6% of all houses in the suburb selling over the past year.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.18.58%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.18.58%20AM.png" alt=""></p>
<p>While the data shows the suburbs with the greatest turnover of houses, each of the suburbs listed have seen substantially less than half of all houses selling.</p>
<p>Another characteristic of note is that most of the suburbs shown are in areas where there is, or has been over recent years, a substantial injection of new housing stock; average hold period data which shows that in new housing estate areas housing stock tends to turnover with greater regularity.</p>
<p>Overall, housing turnover in any given year reflects only a small proportion of the total housing stock. It further highlights that taxes on transactions such as stamp duty are heavily reliant on collection from only a small pool of overall housing stock.  </p>
<p><span>Cameron Kusher is research analyst for CoreLogic. You can contact him </span><a href="https://blog.corelogic.com.au/about/" target="_blank">here</a><span>.</span></p>
</body></html>

ckusher-ujnxiKuFQs

Housing turnover remains low despite strong selling conditions in Sydney & Melbourne: Cameron Kusher

<html><body>
<div>Lend Lease actually reported its FY2017 results, which confirmed a solid+9 percent lift in post-tax profit to $758.6 million. </div>
<div> </div>
<div>The market wasn't greatly moved, of course, since the group inadvertently dumped a stack of market sensitive information out to to the public at the beginning of the month, including the unaudited EBITDA (oops).</div>
<div> </div>
<div>As accounting stuff-ups go, it was a rather impressive one (disclosure: I made similar goofs in my listed company career) though in the end relatively little harm was done, save a little embarrassment.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Defaults under 1pc</span></strong></div>
<div> </div>
<div>Reading through the investor presentation it was interesting to note a +20 per cent uplift in residential unit completions in the 2017 financial year.</div>
<div> </div>
<div>Approximately 90 per cent of apartment completions have already settled, with a default rate of under 1 per cent.</div>
<div> </div>
<div>This follows on from similarly low default rates reported by other developers during earnings season.</div>
<div> </div>
<div>This is very important, for there had been fears of a wave of Chinese investor defaults following on from local lenders pulling up the ladder.</div>
<div> </div>
<div>To date, this does not appear to have transpired.  </div>
<div> </div>
<div>In other news, S&amp;P reported a drop in loan delinquencies from 1.21 per cent in May to just 1.15 per cent in June. </div>
<div> </div>
<div>Declines were recorded "across the board" for 30,60 and 90 day mortgage arrears, with a corresponding fall in outstanding loan balances, with Queensland showing the biggest drop in arrears. </div>
<div> </div>
<div>This broadly mirrors what you'd expect to see given extremely low mortgage rates for homeowners, and a national unemployment rate that has been trending down for several years now.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">No stress?</span></strong></div>
<div> </div>
<div>Countless media articles have claimed that mortgage stress is rising - often referred to as a "perfect storm" no less! - perhaps based upon household cash flow surveys.</div>
<div> </div>
<div>But in reality so many households have been repaying ahead of schedule into offset accounts that it wouldn't be a surprise if some net monthly cashflows showed an outflow. </div>
<div> </div>
<div>With the aggregate value of the housing stock exploding to $7.1 trillion against mortgage debt of around $1.6 trillion, it also wouldn't be a surprise to me if some of the benefiting households have taken a breather on their earnings either. </div>
<div> </div>
<div>In any event, with the possible exception of Western Australia mortgage arrears remain low to date, which is about the only indicator that matters, when all's said and done. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
</body></html>

pwargent-M4siyDbqQY

Lend Lease report low apartment default rate

<html><body>
<div>The share of interest-only loans fell sharply towards the 30 per cent proposed regulatory cap in the June 2017 quarter, as bank incentives to switch towards principal and interest products had the desired impact. </div>
<div> </div>
<div>Treasurer Scott Morrison will argue that the "scalpel" approach to cooling this sector of the market has been successful, forcing Aussies to begin paying back their mortgages sooner. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/08/30/IO1.jpg" target="_blank">Click to enlarge</a></div>
<div><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/2017/08/30/IO1.jpg" alt=""></div>
<div> </div>
<div>For ADIs with greater than $1 billion in residential term loans, new loans to investors also dropped back to a 34.5 per cent share of the new lending market, now well down from 42.5 per cent in the June 2015 quarter. </div>
<div> </div>
<div>The share of high loan to value ratio (LVR) loans has also diminished considerably over the past 10 quarters, which makes life tough for first homebuyers, but arguably reduces mortgage exposure risk in aggregate.  </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA2.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/08/30/APRA2.jpg" alt=""></p>
<div>Despite these changes in the composition of exposures, lending growth remains strong, with total ADI exposures rising by +7.3 per cent over the financial year to $1.54 trillion. </div>
<div> </div>
<div>That's an increase of +$105 billion over the 2017 financial year, ever-so-slightly less than the +$107 billion increase seen in FY2016. </div>
<div> </div>
<div>The growth in ADI exposures to owner-occupiers was particularly strong, rising by +8.1 per cent to beyond $1 trillion for the first time. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/08/30/APRA3.jpg" alt=""></div>
<div> </div>
<div>Activity in new low-doc loans and other non-standard loans continued to decline, as has consistently been the case now since 2009. </div>
<p> </p>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, there was not much of a slowdown in evidence here, even if the composition of lending has shifted. </div>
<div> </div>
<div>Furthermore, non-banks have been growing their mortgage books apace - the dollar value of Pepper's residential loan originations soared by +17 per cent in H1 2017, for example. </div>
<div> </div>
<div>After accounting for these changes it's questionable that there has been any meaningful slowdown at all in the pace of mortgage lending. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
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ADI home loan exposure pass $1 trillion: Pete Wargent

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<div>The Reserve Bank of Australia (RBA) reported credit growth of +5.3 per cent over the year to July 2017, a fair bit slower than the +6.6 per cent seen a year earlier. </div>
<div> </div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/09/04/RBA3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><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/2017/09/04/RBA3.jpg" alt=""></div>
<div> </div>
<div>The slowdown has partly been a reflection of business credit growth ambling along at an annual rate of +4.2 per cent, although surveys suggest that business investment is set to gather a bit of momentum. </div>
<div> </div>
<div>Growth in credit relating to housing market investors has slowed a touch to +7.4 per cent, now well under the 10 per cent cap, with more slowing to come based on recent monthly figures.</div>
<div> </div>
<div>Owner-occupier credit growth is still powering along, though, and total housing credit growth is still a sprightly +6.6 per cent, unchanged from a year earlier.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/04/RBA2.jpg" target="_blank">Click to enlarge</a></div>
<div><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/2017/09/04/RBA2.jpg" alt=""></div>
<div> </div>
<div>Personal credit growth remains negative, as consumers tend towards mortgage buffers and offset accounts instead of of credit cards and personal loans. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Shifts at the margin</span></strong></div>
<div> </div>
<div>There's no doubt that it's become more difficult at the margin to gain access to housing credit, particularly for investor loans, and most especially for interest-only mortgages. </div>
<div> </div>
<div>The growth in investor loans is now well below the regulatory 10 per cent cap for each of the major banks, which between them account for most of the mortgage market.<br><br>A couple of minnow lenders have been pinged with a speeding ticket, including the tiny Heritage Bank, so they'll be putting investor loans in the sin bin, perhaps for a month or two. </div>
<div> </div>
<div>But on the flip side, there's plenty of potential for most of the main lenders to loosen standards again for investment loans as we head into spring and beyond. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/04/APRA2.jpg" target="_blank">Click to enlarge</a></div>
<p><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/2017/09/04/APRA2.jpg" alt=""></p>
<div> </div>
<div>Moreover, while APRA's latest ADI monthly statistics hinted at a marginal slowdown, the reality is that non-standard loans have to some extent been picked up by alternative lenders such as Pepper and their ilk. </div>
<div> </div>
<div>The RBA's figures show that over the year to July 2017 the total stock of outstanding housing credit increased by $113 billion to $1.69 trillion.<br><br>In dollar value terms, this is the biggest annual increase ever recorded.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/04/RBA1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/09/04/RBA1.jpg" alt=""></div>
<div class="separator"> </div>
<div>So, there may be a 'slowdown' of sorts underway, if you will, but as the above chart shows it looks like a shift in composition too.</div>
<div> </div>
<div>Moreover, every single one of the main lenders continues to increase its stock of mortgages outstanding, even if there has been a move towards home loans and away from investor loans. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/04/APRA.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/09/04/APRA.jpg" alt=""></div>
<p><strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br></p>
<div>Some one-track observers have noted that out of cycle rate hikes has crashed or destroyed demand for mortgage debt.</div>
<div> </div>
<div>I'm not sure what data source they're using to draw that conclusion - none, most likely - but the official RBA figures shows a record annual increase in housing credit, with a slowing in investor credit just beginning to flow through to the annual data.</div>
<div> </div>
<div>Experiences elsewhere in the world have shown that macroprudential measures tend to be effective for a while before borrowers and lenders find ways to get transactions happening again.</div>
<div> </div>
<div>The reality is that, in aggregate, interest rate differentials have only slowed lending slightly at the margin to date, while simultaneously boosting the bottom line and equity of gleeful banks.<br><br>Out of cycle rate hikes were certainly never about funding costs, with the cost of wholesale debt barely having broken a decade-long downtrend.</div>
<div> </div>
<div>What would genuinely change the landscape would be a statement of intent from the RBA in the form of a hike in the cash rate, but in all likelihood that remains far away.<br><br>
</div>
<div>In the event a couple of dozen lenders have already cut their mortgage rates since the beginning of July, most notably Westpac, in anticipation of the spring selling season.<br><br>With the trend unemployment rate declining to its lowest level in more than four years and further improvements expected over the next few ahead by the RBA, it will be intriguing to see how claims of a 'perfect storm' and 'record mortgage stress' are reconciled with what's actually happening on the ground.<br><br>I say that because it looks suspiciously as though mortgage default rates are refusing to rise from benign levels outside Western Australia.<br><br>Naturally, household cash flows may appear weaker if accelerated mortgage repayments have become the norm.<br><br>But the statistics show that although wages growth has been weak, the unemployment rate has been falling, and underutilisation is declining in volume terms.<br><br>Genuinely, I'm intrigued to watch what the media will report having run so hard with the unprecedented mortgage stress meme.<br><br>Not everyone agrees with the improving economy thesis, mind.<br><br>Westpac sees the pullback of Chinese apartment investors leading to a sharp slowdown in residential construction and unemployment heading back towards 6 per cent next year.<br><br>Watch, this, space!!!</div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
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The record year for house lending: Pete Wargent 

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<p>There was another upbeat result for building approvals in the month of July 2017, with a shade under 18,300 dwellings approved in the private sector.</p>
<p>From a year ago private sector attached dwelling approvals are some 30 per cent lower, leading total approvals to be off by 14 per cent year-on-year.</p>
<p>Approvals are evidently well down from the peak, especially for high-rise apartments as we shall see. </p>
<p>However, detached house approvals have been steadily trending higher over the past five months, and demand for new homes has picked up the pace too. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/07/B3.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/09/07/B3.jpg" alt=""></p>
<p>Although attached dwelling approvals remained at relatively strong levels in the most populous capital cities in July, the entrenched downtrend is abundantly clear. </p>
<p>In Brisbane, annual approvals continue to drop precipitously as that market grapples with high-rise overbuilding, especially in the inner city.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/07/B1.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/09/07/B1.jpg" alt=""></p>
<p>Interestingly much of the recent strength in detached house approvals has been accounted for by the regional centres, as house price growth ripples outwards.</p>
<p>At the capital city level detached housing in Brisbane looks robust, but annual house approvals in fundamentally oversupplied Perth are down by 41 per cent from the cyclical peak of December 2014.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/07/B2-1.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/09/07/B2-1.jpg" alt=""></p>
<p>High-rise boom &amp; bust</p>
<p>Looking at the composition of dwellings approved shows that in annualised terms high-rise apartments have dropped by a quarter since the heady peak of October 2015. </p>
<p>Indeed, the great bulk of the volatility through this cycle has been driven by the heady combination of low interest rates and a surge of Chinese investor demand for high-rise apartments (which has now gone into reverse gear with local financiers having pulled up stumps).</p>
<p>Lately there has been a shift back towards approvals for more boutique apartment blocks, and especially townhouses. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/07/B4.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/09/07/B4.jpg" alt=""></p>
<p>The boom and subsequent bust in high-rise approvals has followed a markedly similar pattern across each of the three most populous states, thus underscoring the point, although demand in Sydney and Melbourne has held stronger for longer.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/07/B5.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/09/07/B5.jpg" alt=""></p>
<p>Non-residential steps up</p>
<p>While there have been fears of a disorderly slowdown in construction, the total value of building approvals surged in the month July and has been trending solidly higher for six months, helped along by strengthening performance in the non-residential sector.</p>
<p>In fact, the trend in non-residential approvals smoked a record high in July 2017 - in dollar value terms, if not as a share of GDP - driven by office and education buildings in New South Wales and Victoria.</p>
<p>With public works, infrastructure spend, and engineering construction rising, overall the sector remains in considerably better nick than seemed likely at the back end of last year. </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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