<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" data-turn-id-container="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" dir="auto">
<p data-end="437" data-start="182"><a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.</p>

<p data-end="707" data-start="439">Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.</p>

<p data-end="1068" data-start="709">The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.</p>
</section>

<p><img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" /></p>

<p data-end="1381" data-start="1070">The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.</p>

<p data-end="1756" data-start="1383">The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.</p>

<p data-end="2022" data-start="1758">At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.</p>

<p data-end="2254" data-start="2024">The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.</p>

<p data-end="2407" data-start="2256">DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.</p>

<p data-end="2644" data-start="2409">“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.</p>

<p data-end="2752" data-start="2646">DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.</p>

<p data-end="2868" data-start="2754">“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.</p>

<p data-end="3111" data-start="2870">“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”</p>

<p data-end="3360" data-is-last-node="" data-is-only-node="" data-start="3113">The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."</p>


Joel Robinson

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

<p data-end="262" data-start="143">ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.</p>

<p data-end="451" data-start="264">In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.</p>

<p data-end="560" data-start="453">Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.</p>

<p data-end="797" data-is-last-node="" data-is-only-node="" data-start="562">Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" /></p>

<p>An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.</p>

<p>It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.</p>

<p>The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" /></p>

<p>The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.</p>

<p>Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.</p>

<p>“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.</p>

<p>“We propose breaking the tower form into two defined volumes rather than a singular form.”</p>

<p>The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" /></p>

<p>The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.</p>

<p>Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.</p>

<p>The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" /></p>

<p>Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.</p>

<p>“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.</p>

<p>“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”</p>

<p>Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.</p>


First look: Stockland plans 52-storey, 538-apartment St Leonards tower

<p data-end="186" data-start="128">ANZ believes the Reserve Bank is in no rush to move again.</p>

<p data-end="441" data-start="188">Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.</p>

<p data-end="508" data-start="443">That positioning, in ANZ’s view, makes a June rate hike unlikely.</p>

<p data-end="680" data-start="510">The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.</p>

<p data-end="1015" data-start="682">The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.</p>

<p data-end="1098" data-start="1017">As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.</p>

<p data-end="1345" data-start="1100">Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.</p>

<p data-end="1436" data-start="1347">Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.</p>

<p data-end="1678" data-start="1438">The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.</p>

<p data-end="1755" data-start="1680">Ultimately, most members leaned toward the inflation side of that equation.</p>

<p data-end="2082" data-start="1757">Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.</p>

<p data-end="2101" data-start="2084">That’s important.</p>

<p data-end="2239" data-start="2103">While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.</p>

<p data-end="2597" data-start="2241">ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.</p>

<p data-end="2733" data-start="2599">That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.</p>

<p data-end="2807" data-start="2735">However, where ANZ diverges from the RBA is on the outlook for activity.</p>

<p data-end="3152" data-start="2809">The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.</p>

<p data-end="3176" data-start="3154">ANZ is less convinced.</p>

<p data-end="3464" data-start="3178">The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.</p>

<p data-end="3528" data-start="3466">That divergence matters because it shifts the balance of risk.</p>

<p data-end="3740" data-start="3530">If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.</p>

<p data-end="3855" data-start="3742">It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.</p>

<p data-end="3945" data-start="3857">The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.</p>

<p data-end="4135" data-start="3947">On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.</p>

<p data-end="4176" data-start="4137">For now, the Board is choosing to wait.</p>

<p data-end="4286" data-start="4178">But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.</p>

<p data-end="4423" data-start="4288">In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.</p>

<p data-end="4494" data-start="4425">For borrowers, it reinforces the reality that relief is not imminent.</p>

<p data-end="4686" data-start="4496">And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.</p>

<p data-end="4774" data-is-last-node="" data-is-only-node="" data-start="4688">According to ANZ, it is a balance that is becoming increasingly difficult to maintain.</p>


RBA to hold rates for "prolonged period" rather than hikes: ANZ

<p><a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.</p>

<p>The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.</p>

<p><a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360477]</p>

<p>The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.</p>

<p>Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.</p>

<p>VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.</p>

<p>“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360505]</p>

<p>The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.</p>

<p>The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.</p>

<p>Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360473]</p>

<p>BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.</p>

<p>The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.</p>

<p><a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.</p>

<p>The first stage of Cumulus Grand Villas is targeting completion in 2026.</p>

<p>[smartcode_project_cta:default project_id=135663]</p>


VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

<p data-end="89" data-start="0">Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.</p>

<p data-end="659" data-start="141">The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.</p>

<p data-end="1018" data-start="661">For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.</p>

<p data-end="1087" data-start="1020">Waverley Council’s response has been to move early, and decisively.</p>

<p data-end="1547" data-start="1089">Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.</p>

<p data-end="1547" data-start="1089"><img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" /></p>

<p data-end="2067" data-start="1591">At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.</p>

<p data-end="2123" data-start="2069">That repositioning is built around four key ambitions.</p>

<p data-end="2424" data-start="2125">The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.</p>

<p data-end="2897" data-start="2426">The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.</p>

<p data-end="2951" data-start="2899">Oxford Street Mall sits at the centre of that shift.</p>

<p data-end="3478" data-start="2953">Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.</p>

<p data-end="3478" data-start="2953">&nbsp;</p>

<p data-end="3562" data-start="3480">The second ambition is to transform Bondi Junction into a world-class interchange.</p>

<p data-end="3890" data-start="3564">Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.</p>

<p data-end="4240" data-start="3892">The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.</p>

<p data-end="4296" data-start="4242">The third ambition focuses on greening and open space.</p>

<p data-end="4709" data-start="4298">One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.</p>

<p data-end="5076" data-start="4711">The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.</p>

<p data-end="5183" data-start="5078">The fourth ambition is perhaps the most important from a development perspective: growth that gives back.</p>

<p data-end="5501" data-start="5185">Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.</p>

<p data-end="5842" data-start="5590">New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.</p>

<p data-end="6327" data-start="5890">The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.</p>

<p data-end="6732" data-start="6381">Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.</p>

<p data-end="6980" data-start="6734">It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.</p>

<p data-end="7137" data-start="6982">Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.</p>

<p data-end="7519" data-start="7139">Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.</p>

<p data-end="7843" data-start="7556">The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.</p>

<p data-end="8108" data-start="7845">This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.</p>

<p data-end="8528" data-start="8161">Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.</p>

<p data-end="8654" data-start="8530">That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="9626" data-start="9587">&nbsp;</p>

<p data-end="10207" data-start="9884">If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.</p>


“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<p><span>Wholesale electrical supplier Rexel has agreed terms on a new lease over a showroom/warehouse facility at Dandenong in Melbourne’s south-eastern suburbs.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The 45 Greens Road property comprises an 1,120 square metre showroom and warehouse building, located within a trade showroom complex. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>According to Savills’ director Keith Kooloos, who negotiated the deal with Tsimos Commercial’s Ron Jones, Rexel signed a five-year lease with two five-year options. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>The rental was not disclosed but believed to be circa $100,000 per annum net. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>Kooloos said the property ticked all the boxes for Rexel. </span></p>
<p><span>"Rexel had several requirements including exposure in the right location for tradespeople. The new building in a trades complex on one of the south-east’s key arterials was just the right fit providing excellent client accessibility and frontage to Greens Road,’’ he said. </span><span style="line-height: 1.3em;"> </span></p>
<p><span>The lessor is a private Melbourne family.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Rexel takes new lease at Dandenong through Savills

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<p><span style="line-height: 1.3em;">The valuation firm Herron Todd White has issued its latest</span><span style="line-height: 1.3em;"> property clock for the office market - a simple broad brush means to suggest where property markets are - and what direction prices are moving in.</span></p>
<p>Melbourne, Brisbane and Tamworth are at the peak of the cycle.</p>
<p><a href="/images/2015/12/14/700_commclock.jpg" target="_blank">Click here</a> to enlarge.</p>
<p><em>For more information, <a href="https://www.htw.com.au/" target="_blank">click here</a>.</em></p>
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jchancellor-FAypfDUnLy

Melbourne office property at cycle peak: HTW property clock

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<p><span>A premium freehold building in South Melbourne has been snapped up by a multinational IT firm for $2.74 million. </span></p>
<p>The <a href="https://www.realcommercial.com.au/property-offices-vic-south+melbourne-501743510" target="_blank">93-95 Palmerston Crescent</a> property comprises a 530 square metre three-level freestanding building with rear access. The property is located on a 248 metre site.</p>
<p><span>The sale was brokered by CBRE with vacant possession.</span></p>
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IT firm secures $2.74 million slice of South Melbourne 

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<p><span>A Yarraville fresh fruit shop, Dominic’s Fresh Fruit Supply at 27 Anderson Street fetched a top bid of $1.511 million, some $311,000 above the recent auction's reserve price. </span></p>
<p><span>The auction attracted 31 bids from five groups. </span></p>
<p>The property is fully leased to renowned <a href="https://www.realcommercial.com.au/property-retail-vic-yarraville-501756390" target="_blank">Yarraville grocer</a>, Dominic’s, which has been trading in the area for more than 30 years. </p>
<p><span>The property has a net annual income of $54,000 subject to a four-year lease term. </span></p>
<p><span>The sale through CBRE set a strong land rate of $10,070 per square metre and yield of 3.6%.</span></p>
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Fresh fruit shop in Melbourne's Yarraville exceeds reserve price at auction

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<p><span>A successful family-run motel in the western metropolitan area of Melbourne has been bought by a Chinese investor. </span></p>
<p>Located at <a href="https://www.realcommercial.com.au/property-hotel+leisure-vic-ardeer-501619905" target="_blank">608 Ballarat Road, Ardeer</a>, the Sunshine Motor Inn is a 3.5 star motel, owned and operated by father and son team of John and David Swain for two decades. </p>
<p><span>CBRE Hotels’ Scott Callow and Joseph Du Rieu brokered the deal for the Swain family via an expression of interest campaign. </span></p>
<p><span>The motel consists of 44 refurbished accommodation rooms, a two-bedroom manager’s residence, swimming pool, public bar, restaurant, a modern commercial kitchen with wood fired pizza oven and an extensive bitumen sealed car park. </span></p>
<p><span>“Although situated in a primarily industrial area, the Sunshine Motor Inn is popular within the fast growing northern and western suburbs industrial areas, providing easy access off the Western Ring Road,” Du Rieu explained as the reason for the sale.</span></p>
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Chinese investor snaps up motel in Melbourne

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<p><span>The planned development and expansion of the Busselton Central Shopping Centre has been approved by Western Australia’s Southern Joint Development Assessment Panel (JDAP).</span></p>
<p><span>The shopping centre is owned by the Australian Unity Diversified Property Fund (DPF), an unlisted property fund that invests in retail, office and industrial properties in Australia.</span></p>
<p><span>Busselton is about 230 kilometres south-west of Perth. </span></p>
<p><span>Over the five years to June 2013, Busselton has experienced an average annual growth rate of 3.9%, which is significantly higher than the national average of 1.7% over the same period. The residential growth area is also a popular seaside tourist destination and is recognised as one of Western Australia's premier tourist spots and events capital.</span></p>
<p><span>Nikki Panagopoulos, property portfolio manager with Australian Unity Real Estate Investment, said JDAP’s approval was a significant milestone.</span></p>
<p><span>“This is the first step in developing Busselton’s main shopping centre, increasing in size by 40% to 16,000 sqm. The expansion will include a discount department store, additional specialty shops, and an entertainment precinct with cafes and a restaurant."</span></p>
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Australian Unity development of Busselton Central Shopping Centre approved

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<div>There are multiple data sources for tracking property markets, but the ABS Residential Property Price Indexes series is always one worth analysing, particularly since the Reserve Bank of Australia (RBA) itself follows it closely.</div>
<div> </div>
<div>Established house prices rose by +2.2% in the third quarter to be +11.4% higher over the past 12 months, while attached dwellings rose by +1.4% to be +8.7 % higher over the year. </div>
<div> </div>
<div>While averages mask endless underlying trends, the long run data implies that on average over the past dozen years established house prices (+5.6% per annum) have been outperforming attached dwellings (+4.8% per annum), commensurate with lower initial spot yields. </div>
<div> </div>
<div><a href="/images/2015/12/15/Resi1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/Resi1.jpg" alt=""></div>
<div> </div>
<div>
<span>Let's step today's the key figures in three short parts.</span><br><br><strong><span style="text-decoration: underline;">Part 1 - Price indexes</span></strong><br><br><div>The star performers over the past year have been established houses in Sydney (+21.9%) and attached dwellings in the same city (+15.8%).</div>
<div>
<br>Established house prices in Melbourne have also performed strongly to be up by +11.5% over the year, but on average attached dwellings price growth in the Victorian capital has been more contained at +4.5%, reflective of the volume of new supply. </div>
<div> </div>
<div><a href="/images/2015/12/15/Resi2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/Resi2.jpg" alt=""></div>
<div> </div>
<div>
<div>Dwelling prices over the year have performed solidly in Brisbane (+3.8 per cent), Canberra (+4.0 per cent), Adelaide (+3.5 per cent), and Hobart (+1.7 per cent).</div>
<div> </div>
<div>On the other hand there have been moderate declines to date in Darwin (-2.0 per cent) and Perth (-3.3 per cent), although interestingly Domain Group forecasts moderate price growth to return to both cities in 2016, whereas I have previously argued that prices may follow rents down in the next calendar year. </div>
<div> </div>
<div>Since the end of 2008 Sydney (+83 per cent) and Melbourne (+51 per cent) have outperformed impressively, while prices are also now rising in Brisbane, Adelaide, Canberra, and Hobart. </div>
<div> </div>
<div><a href="/images/2015/12/15/Resi3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/Resi3.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 2 - Stock value</span></strong><br><br><div>Over the past three years the total value of dwelling stock has surged +32 per cent or +$1.42 trillion higher, to a total stock value of $5.86 trillion.</div>
<div> </div>
<div><a href="/images/2015/12/16/Resi4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/12/16/Resi4.jpg" alt=""></div>
<div> </div>
<div><span>More than 90 per cent of the gains in the value of dwelling stock over those three years have been accounted for by New South Wales (+$756 billion), Victoria (+$390 billion), and Queensland (+$131 billion), with the other states and territories accounting for the remaining +$141 billion. </span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/16/Resi5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/16/Resi5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Mean dwelling prices over the past three years have exploded in New South Wales (+$236,000), and increased strongly in Victoria (+$133,000). </span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/16/Resi6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/12/16/Resi6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>In fact, despite the recent declines in Western Australia and the Northern Territory noted above, the mean dwelling price has moved some way higher across all states and territories across a three year timeframe.</div>
<br><strong><span style="text-decoration: underline;">Part 3 - Volume of dwelling stock</span></strong><br><br><div>The final chart below helps to explain why although an increase in the dwelling supply can accentuate market downturns - particularly in smaller towns and cities - in the larger cities an increase in building activity on its own can take years to dampen prices. </div>
<div> </div>
<div>One reason for this is that new builds only ever account for a fraction of transactions in a given year, and therefore the level of available supply at any point in time is rather driven by the established or "second hand" market (another reason is that over-simplified views of the market fail to take account of how well the new supply matches demand at the LGA, suburb, and household formation level).</div>
<div> </div>
<div>Over the past four years, while the Australian Capital Territory (+10.9 per cent) and the Northern Territory (+10.1 per cent) have increased their respective number of dwellings materially, this is of course somewhat harder to achieve when you are starting from a higher base figure.</div>
<div>
<br>Despite this, Western Australia (+8.6 per cent) and Victoria (+7.9 per cent) have made valiant attempts to increase the total supply of dwellings since the the equivalent quarter 2011 according to the ABS data series.</div>
<div> </div>
<div><a href="/images/2015/12/16/Resi7.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/16/Resi7.jpg" alt=""></div>
<div> </div>
<div>
<div>On the other hand, the ABS figures show that the number of New South Wales dwellings has increased by only +4.4 per cent over the past four years, which may go some of the way to explaining why Sydney's rental market has remained relatively tight to date, despite alleged overbuilding.</div>
<div> </div>
<div>Over the past three years the population of Greater Sydney has increased by around +230,000, and thus while it is easy enough to find localised areas of oversupply, after accounting for stock obsolescence, demolitions, and dwelling approvals that never make it to completion, at the city level at least the market remains relatively balanced in terms of dwelling supply (at least, for now).</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
</div>
</div>
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pwargent-M4siyDbqQY

Sydney house prices up 21.9% Pete Wargent

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<p><span>The median rental for properties in Sydney's rental heartland, Randwick was unchanged in September-October from the previous quarter, but the average days on the market came down. </span></p>
<p>According to a report by <a href="https://www.rent.com.au" target="_blank">rent.com.au</a> the median rental price for a 30-day period was $580 per week, same as the previous quarter, it said.</p>
<p><span>Surrounding suburbs of Centennial Park, Queens Park, Waverley, Clovelly, Kingsford, Kensington, Coogee and South Coogee, however, commanded a higher median rental of $600 during the quarter, and also the previous one, the data showed.</span></p>
<p><span>The average days on the market for rental properties advertised in Randwick in the 90 days covered by the report was 17 days, four days less than the last quarter and about half of the 33 days on the market for properties in nearby suburbs.</span></p>
<p>There were 102 rental properties advertised in Randwick in the last 30 days before the report came out in mid-October - this is up six from the previous 30 days, the report to landlords noted.</p>
<p><span>The total number of rental properties in the suburb was 5,230, making up 47.8% of all properties in Randwick, according to ABS data in 2011.</span></p>
<p><span>The property composition in Randwick is made up of about 68 percent apartments and 32 percent as houses. </span></p>
<p><a href="/images/2015/12/16/Screen%20Shot%202015-12-16%20at%2011.52.40%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><img src="/images/2015/12/16/Screen%20Shot%202015-12-16%20at%2011.52.40%20AM.png" alt=""></p>
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Randwick rentals constant at $580 per week: Rent.com.au report

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<p>The Gold Coast market is a tale of two cities, one representing the best of times and the other the worst of times.</p>
<p>The best is the housing market, which is responding to population growth, infrastructure spending and other stimulus to produce rising sales activity and price growth across the region. The worst is the likely outcome in the coastal suburbs dominated by high-rise apartments.</p>
<p class="Body">I’ve made my views about the unit market pretty clear. I wrote about it in this column in September, when I started by saying  “It’s danger time for investors tempted to buy high-rise apartments on the Gold Coast” and ended with “For investors who are susceptible to a strong marketing pitch, it’s time to be afraid, be very afraid”.</p>
<p class="Body">Gold Coast high-rise units are a prime candidate for the title of worst capital growth performers in Australian real estate, constantly undermined by a boom-bust history characterised by periods of massive oversupply.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">But the Gold Coast is a big city, with a population currently estimated at 550,000 and projected to top 620,000 in five years. It’s in a similar position to both Melbourne and Brisbane – the downtown unit markets should be avoided because of looming oversupply, but suburban housing markets look strong.<span style="line-height: 1.3em;"> </span></p>
<p>There is more momentum in the Gold Coast suburban market – what I call the genuine residential market of the Gold Coast – than anywhere else in Australia right now.</p>
<p>The Gold Coast is the clear national leader among the Local Government Areas of Australia, including both capital cities and regional areas. It has the most growth suburbs, by a wide margin.</p>
<p>When we examine the sales volumes suburb by suburb, the momentum is exceptional. And this is key information for real estate consumers, because when sales activity rises strongly, price growth is inevitable.</p>
<p>I have mentioned one of the rising Gold Coast precincts as one of my five markets to watch in 2016 – the northern growth corridor stretching up the Pacific Motorway towards Brisbane.</p>
<p>Oxenford stands out in this precinct, with sales rates lifting from 80-90 per quarter last year to 130-135 in the past two quarters. Other growth suburbs in this area include Coomera, Upper Coomera, Pimpama and Ormeau.</p>
<p class="Body">But there are growth markets right throughout the residential suburbs of the Gold Coast. Others include Burleigh Waters, where sales in the past five consecutive quarters have been 85, 92, 100, 131 and 144. The pattern there is undeniable and the suburb’s median price is now growing at an annual rate above 10%.</p>
<p class="Body">Mermaid Waters is also a growth market, with sales rates up from around 80 per quarter last year to about 120 per quarter now, which means sales activity has increased 50% in 12 months. And, as in Burleigh Waters, the median price is starting to head north.</p>
<p class="Body">This rising trajectory of sales is producing price growth in many of the residential suburbs. The annual change in median house prices is in double digits for some of them, including Helensvale, Merrimac, Pimpama, Robina and Worongary, in addition to Burleigh Waters and Mermaid Waters.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">But more common, to date, is growth of 5%, 6% or 7%. I expect the rate of growth to rise in 2016.</p>
<p class="Body">It’s also significant that many of the apartment markets have recorded median price decline in the past 12 months or have had zero growth. And most have long-term growth averages that are negative, zero or just 1-2% per year.</p>
<p class="Body">It’s very much a tale of two cities – the city of houses and the city of high-rise apartments. As investors, consider the former but avoid the latter.</p>
<p class="Body"> </p>
<p class="Body"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

Gold Coast property market a tale of two cities: Terry Ryder

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<p><span>A reasonably solid set of </span>Lending Finance<span> numbers were reported for October 2015, with commercial finance fairly flat, down 1% at a seasonally adjusted $45.6 billion (following a 9% jump in September), and total lending tentatively inching up to a new trend high of $73.7 billion. </span></p>
<p><span>Both commercial lending and total lending finance have recently breached 7 year highs.</span></p>
<p><a href="/images/2015/12/15/LF1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/15/LF1.jpg" alt=""></span></p>
<p> </p>
<p><span>As we saw </span>earlier in the week<span>, owner-occupier lending has increased very sharply, with commitments for the purchase or construction of dwellings up by 23% over the past year on a seasonally adjusted basis.</span></p>
<p><a href="/images/2015/12/15/LF2.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/15/LF2.jpg" alt=""></span></p>
<p> </p>
<div>Lease finance increased by 17 per cent over the year, but loans for the purchase of blocks of residential land are down by some 25 per cent since one year ago.</div>
<p><br><strong><span style="text-decoration: underline;">Investor finance derailed</span></strong><br><br></p>
<div>The flip side to the strong home loans data is that the cooling macroprudential measures implemented by APRA have derailed the runaway investor boom, with investor commitments crashing off their respective tracks across every state and territory.</div>
<div> </div>
<div><a href="/images/2015/12/15/LF3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>Demand was fading in Western Australia and the Northern Territory in any case, and now after lending curbs even those who want to source investor finance are struggling to do so. </div>
<div> </div>
<div>Prices will almost certainly thus follow rents down in 2016 in Perth and Darwin. The Top End in particular is looking set for a sharp correction, with median detached house rents having declined by around 20% and investor loans now tanking, down by more than 40 per cent over the past year. </div>
<div> </div>
<div><a href="/images/2015/12/15/NT.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/NT.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Borrowers flipping the script</span></strong><br><br><div>The crimping of investor lending has clearly been enough to bring many property markets back to stall speed, as evidenced by stumbling auction clearance rates. However, there is a bit more to this than meets the eye, and it does not necessarily follow that APRA's measures will lead to declining house prices across the board (it seems unlikely that this was the intention in any case).</div>
<div> </div>
<div>For "Exhibit A" the Reserve Bank's Financial Aggregrates data has already implied that some loans are being switched to or reclassified as owner-occupier products, as borrowers aim to obtain the cheaper mortgage rates now associated with that sector of the market (see <a href="https://petewargent.blogspot.co.uk/2015/12/credit-growth-at-near-7-year-high" target="_blank">here</a> for more).</div>
<div> </div>
<div>And now for "Exhibit B", refer to the Housing Finance data for October released this week, which implies exactly the same thing, that borrowers and lenders are flipping the script in order to counter APRA's regulatory intervention. </div>
<div> </div>
<div><a href="/images/2015/12/15/LF4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/15/LF4.jpg" alt=""></div>
<div> </div>
<div><span>To date most of the increase in owner-occupier commitments has been focussed upon New South Wales and Victoria, although a fair proportion of that has related to refinancing rather than genuinely new lending.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/15/LF5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/15/LF5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>The Reserve Bank's Financial Aggregates data for October mirrored these trends closely, the net result being that housing credit growth rose to a fresh cyclical high of 7.5%, although it does seem that the pace of increase is steadying. </div>
<br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><div> </div>
<div>There is evidently quite a bit going on in the housing finance space at the moment and not a great deal of clarity surrounding the numbers. In truth some lenders themselves probably have little clarity around the classification of loans beyond their initiation.</div>
<div> </div>
<div>To date it has become clear that the APRA measures have scrambled the market and have stopped the Sydney boom from rolling unchecked into another calendar year, with investor commitments having pulled back sharply right across the board.<br><br>In time, this will be seen to be a worthy step, since many markets had become far too top-heavy with investors. At the peak of the investor market, excluding refinancing, in New South Wales and Victoria investor loans had breached 60 and 50 per cent of the mortgage market respectively. Today the equivalent numbers are down to 50 and 40 percent and falling.</div>
<div> </div>
<div>My experience in the UK suggests to me that caution should be exercised before declaring the unpredictable outcomes of macroprudential measures prematurely. Britain's Mortgage Market Review (MMR), which had the stated goal of curbing irresponsible lending, radically changing mortgage rules with effect from April 2014 and for six months the housing market was gummed up by the paperwork and pen-pushing. </div>
<div> </div>
<div>Yet as of today UK housing prices are once again rising at a reomping annualised pace of 9 per cent, with the popular markets of the south east tracking in double digit territory to record highs. Unlike the global real estate experts out there I don't pretend to know a great deal about the experiences related to macroprudential measures in New Zealand, but assume similar tales could be told, at least in Auckland. </div>
<div> </div>
<div>It will be an interesting start to 2016, which I think will be a more unpredictable year than most, and not only in the housing market space.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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