Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

APRA

<html><body>
Over the course of 2016, APRA expects to release several policy consultation packages. These will, for the most part, primarily affect authorised deposit-taking institutions (ADIs) and the superannuation industry.
The consultations will reflect both domestic policy initiatives - largely driven by the Government’s response to the Financial System Inquiry (FSI) – and, for ADIs, the implementation of internationally-agreed reforms. Insurers will chiefly be impacted by a limited number of cross-industry policy proposals, as well as a review of the role of actuaries.
APRA will also begin engagement with private health insurers during 2016 on the future direction of the prudential framework for their industry. Responsibility for prudential regulation of the private health insurance industry passed to APRA on 1 July 2015 and, consistent with APRA’s undertakings during the transition, no substantive changes will be made to the prudential framework for private health insurers prior to 1 July 2016.
In conducting policy consultations, APRA follows an open and transparent process where public and industry feedback is actively encouraged, and final policy positions are formed after giving due consideration to feedback received.
<h3>International developments</h3>
The Basel Committee on Banking Supervision (Basel Committee) – the global standard-setter for banking - is committed to finalise in 2016 its remaining post-global financial crisis (GFC) reforms. This includes new standardised approaches to credit risk and operational risk; reducing risk-weight variability when ADIs use internal models for capital adequacy purposes; new capital floors; and the leverage ratio. This follows from the recently-finalised review of capital requirements for trading book exposures.
APRA intends to take a measured approach towards implementing these changes, with suitable adjustments for the Australian context. Whilst these reforms have the potential to affect all ADIs, it is likely the impact will be more noticeable for the largest ADIs. However, given the international work is unlikely to conclude before end 2016, and with many implementation dates yet to be agreed, APRA’s domestic consultation is unlikely to begin before 2017, with local implementation of these reforms following over a number of years.
Derivative markets have also been an area of intense international reform in the post-GFC period. APRA has begun the implementation process in Australia with the recent release of a cross-industry consultation package on margining and risk mitigation standards for non-centrally cleared derivatives; a separate (but related) consultation on ADI capital requirements for counterparty credit risk will follow in the near future. These reforms generally only affect the larger APRA-regulated entities in each impacted industry.
<h3>Domestic developments</h3>
The final report of the FSI includes a number of recommendations that are directly relevant to APRA’s prudential framework. The Government’s response to the FSI, Improving Australia’s Financial System, endorsed APRA to implement a number of these recommendations. APRA’s plans in this regard are set out below.
FSI Recommendation 1: Capital Levels – the FSI highlighted that the stability of the banking sector is of paramount importance to Australia’s economic well-being. With that in mind, the FSI recommended that ADIs have capital ratios that are ‘unquestionably strong’. In settling a final prudential framework to deliver on this recommendation, APRA needs to have regard to the ongoing work of international standard-setters such as the Basel Committee, as well as give thought to how other measure of resilience (for example, with respect to liquidity and funding) can assist in achieving the FSI’s objective. With this in mind, APRA will shortly begin consultation on the implementation of the Net Stable Funding Ratio, which is designed to improve the stability of bank funding profiles.
FSI Recommendation 2: Narrow mortgage risk weight differences – in July 2015, APRA announced an interim measure to increase the average residential mortgage risk weights for ADIs using the Internal Ratings-based (IRB) approach to capital adequacy, from approximately 16 percent to at least 25 percent. This change takes effect from 1 July 2016. Whilst this step materially addresses the FSI recommendation in the short term, APRA will need to consider whether further changes are necessary after the Basel Committee’s broad review of the capital framework is complete later this year.
FSI Recommendation 3: Loss absorbing and recapitalisation capacity – consistent with the FSI’s recommendation of not moving ahead of international developments, this is an issue that APRA intends to address over the medium term. In the meantime, APRA is monitoring initiatives being taken by overseas regulators in this area, and has begun limited engagement with industry participants on this issue.
FSI Recommendation 4: Transparent reporting – larger ADIs have begun disclosing ‘internationally comparable’ capital ratios, informed by the methodology developed by APRA for its International capital comparison study (July 2015). Although not strictly aligned with the FSI’s recommendation for reporting capital ratios that are ‘transparent against the minimum Basel capital framework’, APRA’s study and the larger ADIs’ reporting have addressed this issue to a large degree. APRA will continue to monitor international comparisons during the course of the year, and then consider whether further work is needed on this recommendation.
FSI Recommendation 7: Leverage ratio – the Basel Committee is finalising its proposals for the introduction of a leverage ratio as part of its reforms to the Basel capital framework. Leverage ratio disclosure requirements for the largest ADIs have been implemented, but at this stage APRA is likely to follow the international timeframe for the introduction of a minimum leverage ratio requirement (currently scheduled for 2018).
Also of importance to ADIs are revisions to the prudential framework for securitisation. The consultation period on these proposals closed earlier this month, and APRA intends to finalise these revisions in 2016.
In the superannuation industry, APRA will participate where relevant in further Government policy consultation on post-retirement outcomes and governance of superannuation trustees (FSI Recommendations 11 and 13), and initiatives related to the objectives and efficiency of the superannuation system (FSI Recommendations 9 and 10). APRA is also be closely involved in the Government’s consultation on measures to improve the transparency of the superannuation industry, including reforms to the product dashboard requirements for MySuper products and choice investment options.
In general insurance and life insurance, APRA is progressing its review of the role of the Appointed Actuary, and anticipates commencing a public consultation in mid-2016. Across all industry sectors, APRA will continue to refine and clarify its governance requirements, particularly in relation to the important role played by Boards in APRA-regulated entities. APRA will also announce the next steps on our approach to the supervision of conglomerate groups in the near future.
More generally, APRA’s mandate is to balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality; and to promote financial stability. The FSI noted that regulators should, while remaining consistent with their mandate, increase their focus on competition in the financial system (Recommendation 30).
APRA will be looking to provide more information on how it balances financial safety with these other objectives, and more actively seek industry input on these issues so that policy choices are best able to balance these considerations without undermining prudential outcomes.
<div id="footnote"> </div>
</body></html>

po-LsXgBTHBmX

Property 101: APRA's prudential policy outlook

<html><body>
The Australian Prudential Regulation Authority's supervision of lending standards for housing will continue in 2016, APRA chairman Wayne Byres said in his opening statement to the House of Representatives Standing Committee on Economics in Canberra.
He said lending for housing continues to grow at a solid 7 pe cent per annum, but owner-occupiers now have a greater proportion of new loans than investors, according to the media release.
"Importantly from our perspective, serviceability assessment standards have improved across the industry, although we still have further work to do to ensure improved lending policies are fully implemented, monitored and enforced," he said.
The APRA had introduced a cap of 10 percent on allowable growth in bank lending on residential investment loans last year, forcing big banks to hit the brakes on loans to property investors. 
The RBA December board minutes had also noted the growth in lending to investors in the housing market appeared to have eased, with a moderation in the pace of growth in housing prices in Sydney and Melbourne over recent months.
</body></html>

jonathanchancellor-7SQnKwU6yx

APRA to closely monitor home lending in 2016, says chairman Wayne Byres before House  

<html><body>
Over the past few years, APRA has intensified its scrutiny of the mortgage lending practices and risk profiles of Australian authorised deposit-taking institutions (ADIs).
These actions reflect the importance of housing lending within Australia’s banking system.
Steps taken by APRA have included:
<ul>
<li>in 2011, and again in 2014, seeking assurances from the Boards of the larger ADIs that they were actively monitoring their housing lending portfolios and credit standards;</li>
<li>in 2013, commencing a more detailed collection from the larger ADIs on a range of housing loan risk metrics;</li>
<li>in 2014, stress-testing the 13 largest ADIs against a significant housing market downturn; and</li>
<li>also in 2014, issuing a prudential practice guide on sound risk management practices for residential mortgage lending.</li>
</ul>
Finally, against a backdrop of continued heightened risk due to high house prices, high household debt, low interest rates and subdued income growth, in December 2014 APRA wrote to all ADIs outlining further steps it planned to take to reinforce sound residential mortgage lending practices. These steps — which included the establishment of benchmarks for ADIs on loan serviceability and investor lending portfolio growth — were developed following discussions with other members of the Council of Financial Regulators. 
Over the course of 2015 and into 2016, APRA has been closely monitoring ADI lending portfolios, including against these stated benchmarks.  
One key element of ADIs’ lending practices is the method by which they assess a customer’s ability to service a loan against a range of potential future circumstances. This assessment of loan serviceability is not merely a legal obligation for lenders; it is also an important, prudent risk management practice. 
</body></html>

Property 101: APRA on residential mortgage underwriting standards

<html><body>
The Australian Prudential Regulation Authority (APRA) released its December 2015 quarterly data on property exposures by Australian authorised deposit-taking institutions (ADIs).
The data is always interesting to analyse in order to get further insight into the current state of the mortgage market.
The first data point is residential term loans to households which have a total outstanding balance of $1.384 trillion which has increase by 8.9% over the past year. The total value of outstanding owner occupier loans is $884 billion having increased by 12.8% over the past year and accounting for 63.9% of all outstanding loans. The remaining 36.1% of outstanding loans are to investors, having increased by 2.6% year-on-year to $500 billion. 
Growth in outstanding loans has tilted away from investors to owner occupiers.  After year-on-year growth in investor loans peaked at 18.2% in March 2015 it has slowed to 2.6% growth while owner occupier credit troughed at an annual rate of 2.2% in March 2015, before rebounding to the current annual rate of 12.8% (the fastest annual growth rate since June 2010).
<a href="/images/2016/03/Chart-1-3-580x204.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-1-3-580x204.jpg" alt="">
In terms of the types of loans outstanding, 42.3% have an offset facility, 39.3% are interest-only, 0.2% are reverse mortgages, 2.0% are low documentation loans and 0.1% are other non-standard loans.  The year-on-year change across these loan types has been recorded at: +22.0% for loans with an offset facility, +11.6% for interest-only loans, +1.6% for reverse mortgages, -16.6% for low documentation loans and -5.7% for other non-standard loans.  Importantly, the value of outstanding residential loans for low-documentation loans is now at a record low.
<a href="/images/2016/03/Chart-2-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-2-3-580x207.jpg" alt="">
The data highlights that the average outstanding balance on a residential loan is $248,800, up by 1.0% over the quarter and by 4.4% year-on-year.  Reverse mortgages ($95,700), low-documentation loans ($192,800) and other non-standard loans ($195,900) all have much lower outstanding balances.  Meanwhile, loans with offset facilities ($303,700) and interest-only loans ($330,000) have significantly higher outstanding balances. 
The year-on-year changes to the outstanding loan balances have been recorded as follows: +7.2% for loans with an offset facility (fastest year-on-year growth since June 2011), +4.9% for interest-only loans, +2.8% for reverse mortgages (slowest year-on-year growth on record), -1.5% for low-documentation loans and -6.8% for other non-standard loans.  The data shows a slowing in the growth of outstanding loan values for reverse mortgages while riskier lending types (low-documentation and other non-standard) have seen an ongoing fall in outstanding loan amounts.
While the previous data looked at the total value of residential mortgages outstanding, the following data focuses on new residential mortgages over the final quarter of 2015.
Over the December 2015 quarter there was a record-high $98.130 billion worth of new residential mortgages approved, $69.091 billion worth were owner occupied with the remaining $29.040 billion being for investment purposes.  Year-on-year the value of new owner occupier loans is 28.8% higher, its greatest change on record, while investor mortgage lending is -24.9% lower, its largest fall on record.
<a href="/images/2016/03/Chart-3-3-580x212.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-3-3-580x212.jpg" alt="">
Looking at the types of mortgages approved over the quarter: a record low 0.3% were low-documentation, 37.0% were interest only which was its lowest proportion since March 2013, 0.1% were other non-standard loans, 47.4% were originated by third parties and 3.7% were loans approved outside of serviceability.
Focussing on the year-on-year change; low documentation loan approvals are -41.8% lower (their largest year-on-year fall since March 2013), interest-only loan approvals are -11.0% lower (their largest year-on-year fall since March 2009), other non-standard loan approvals are up 28.2% (their largest year-on-year increase since December 2013), third party originated loans are up 6.2% and loans approved outside of serviceability are up 41.3%.  The data indicates there has been a significant pull-back in low-documentation loans and interest-only loans. 
At the same time, non-standard and loans approved outside of serviceability are rising significantly which may be a potential point of concern for APRA.  Although they make-up a small overall proportion of lending it will be something to keep a close watch on over the coming quarters especially since both have also recorded a quarterly increase.
<a href="/images/2016/03/Chart-4-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-4-3-580x207.jpg" alt="">
Finally the data breaks out new lending by loan-to-value-ratio (LVR) bands.  Over the quarter, 23.4% of all new loans had an LVR of less than 60%, 53.4% had an LVR of between 60% and 80%, 14.5% had an LVR of 80% to 90% and 8.7% had an LVR of more than 90% which was its lowest proportion on record. 
Looking at the year-on-year changes, the value of lending for LVRs of less than 60% was 16.1% higher, LVRs of between 60% and 80% increased 6.1%, LVRs of 80% to 90% increased 14.3% and LVRs greater than 90% fell by -20.1% which was the largest year-on-year fall June 2010.  Based on the data it is clear that lenders have been tightening lending requirements over recent quarters which has led to a sharp decline in new mortgage lending for LVRs above 90%.
Overall the data indicates that the market is responding to regulatory changes in the lending space implemented over the past year.  There is less new lending to high LVRs, fewer low documentation and interest-only mortgages being written. 
On the other-hand some other potentially more risky lending types such as non-standard and outside of serviceability loans are continuing to rise.  It will be interesting to see whether APRA starts to look to crack-down on some of these types of lending in order to ensure stability within the mortgage market.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

ckusher-ujnxiKuFQs

APRA data shows a further tightening of lending standards: Cameron Kusher

<html><body>
The Reserve Bank of Australia governor Glenn Stevens has confirmed one of big concerns over the past year has been resolved.
He suggests official measures have held back the panicked buying that had been fuelling the property boom in Sydney following tougher lending rules imposed by the Australian Prudential Regulatory Authority which seemed to be working. 
"It had to happen," Mr Stevens told The Australian Financial Review which has published its annual interview with the RBA Governor. The interview suggests a level of comfort with the economy in the near term and that the RBA seems content to retain rates on hold.
He noted CoreLogic RP Data's price dip over recent months.
"I think that's welcome because an ongoing rapid pace of price increase, I think, leads to dynamics in the economy that are ultimately unhelpful – the possibility of people, you know, almost buying in panic, stretching their balance sheet and so on.
"So I think what we've seen is that things have calmed down a bit.
"I think that's welcome."
The newspaper said the central banker wasn't just worried about Australians taking on more debt than they could repay if interest rates rose as he was also concerned that housing was becoming too expensive for many.
"The pace of growth that we had – you can't keep going at that pace without new stimulus coming into the market from somewhere because the affordability levels just get out of reach for people unless we keep cutting interest rates which we're not doing right at the moment, obviously," he told The Australian Financial Review. 
He suggested Melbourne's market "retains a little more buoyancy" than Sydney, but declined to predict where capital city prices would go in 2016.
"So I'm happy with the way those things have worked out thus far, but what happens from here, you know, you can't tell.
"You can't pick that," he said.
</body></html>

jchancellor-FAypfDUnLy

Panicked buying in decline, but 2016 price direction imprecise: RBA governor Glenn Stevens

<html><body>
The RBA December board minutes noted the growth in lending to investors in the housing market appeared to have eased, with a moderation in the pace of growth in housing prices in Sydney and Melbourne over recent months.
Housing price growth had mostly remained subdued in other cities.
"In the established housing market, auction clearance rates and housing price growth had declined over recent months in Sydney and to a lesser extent in Melbourne.
"Prices were declining in Perth and rising moderately in much of the rest of the country."
The Reserve Bank of Australia board members observed that the growth of total housing credit had been little changed.
<a href="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.52.47%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.52.47%20AM.png" alt="">
"The easing in housing price growth in Sydney and Melbourne and apparently lower growth in lending for the purpose of investor housing had followed an earlier tightening in lending terms, partly in response to supervisory measures announced by the Australian Prudential Regulation Authority.
"It was still too early to assess the effect of the modest increase in lenders' mortgage rates in November (for both investors and owner-occupiers) on the housing market.
<a href="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.54.10%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.54.10%20AM.png" alt="">
"While the recent changes to some lending rates for housing would reduce demand slightly, overall conditions remained quite accommodative.
"Members observed that supervisory measures had been helping to contain risks that may arise from the housing market."
The December minutes also noted the available data suggested that dwelling investment had increased in the September quarter.
"Building approvals remained at high levels, despite having eased somewhat since the start of the year.
"This was consistent with the expectation of further increases in dwelling investment in coming quarters, albeit at a gradually declining rate."
<a href="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.55.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.55.34%20AM.png" alt="">
 
<a href="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.56.40%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/15/Screen%20Shot%202015-12-15%20at%2011.56.40%20AM.png" alt="">
</body></html>

APRA measures are containing housing risk: RBA

<html><body>
Geoff Summerhayes has been appointed a member of the Australian Prudential Regulation Authority (APRA) by the Treasurer for a term of five years from January 1.
Summerhayes was most recently the chief executive officer of Suncorp Life, a role he has held since 2008. Prior to joining Suncorp, he spent more than 20 years with property and financial services organisations like Lend Lease, MLC and NAB.
In his new role, Summerhayes will focus on APRA’s activities in relation to general, life and private health insurance.
The Treasurer also appointed Helen Rowell, an APRA member since July 2013, as the regulator's deputy chair for the remainder of her five-year term. Rowell will continue to have primary responsibility within APRA for all superannuation-related matters.
"Geoff will bring a great deal of commercial acumen and experience to the position of APRA Member. I look forward to working with Helen and Geoff to ensure APRA continues to perform its responsibilities effectively and efficiently, for the benefit of the Australian community," said APRA chairman Wayne Byres.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Geoff Summerhayes appointed new APRA member, Helen Rowell to deputy chair

<html><body>
Officialdom decided last December that property investor lending needed to be restrained given the emerging trend of more money being lent to investors than owner occupiers.
The Australian Prudential Regulation Authority introduced a cap on allowable growth in bank lending on residential investment loans.
This eventually impactful decision got lost amid the seasonal Christmas break, and further from mind when the Reserve Bank of Australia cut the cash rate to 2.25% at its opening February 2015 meeting.
Growth in credit extended to investors had increased by 10% during 2014, right on the APRA threshold for its intended stricter scrutiny of lending practices.
Owner-occupier credit growth had at around 5.5%.
Of course APRA was technically not targeting house price levels – but rather setting benchmarks for a safer banking system.
The early 2015 auction competition saw no handbrake in the battle between home buyers and investors.
Reaching fever pitch, clearance rates peaked in March at 82%, according to CoreLogic RP Data, with properties typically knocked down at record prices especially in cheaper outer Sydney districts where auction had never been the normal means of sale.
It was soon obvious that the subtle backroom macroprudential measures needed to be intensified.
The jawboning by the RBA and APRA became more emphatic. The banks were told to look at loan-to-valuation ratio limits which made it harder to get an investor loan. Interest only loans became a rarity. Off the plan buyers were told they'd need to fund 20% of their apartment purchases. Finance approvals for house and land lots were being delayed until preliminary works had been completed. One bank even stopped all new lending to investors.
Events and issues then combined that further unnerved the housing market. There were signs of a retreat in foreign buyers as Treasurer Joe Hockey launched his crackdown on overseas buyers who were boosting prices in select suburbs. Financial inquiry chief David Murray raised the prospect of negative gearing reform. Doubt was cast over the future of self managed super funds being able to borrow.
In May Treasury secretary John Fraser warned that Sydney was in a housing bubble. The RBA governor Glenn Stevens wasn't wrong in June when he said some crazy prices were being paid. 
Against a backdrop of high household debt, subdued income growth and fluctuating unemployment, the negativity clincher came after the banks raised home loan rates in mid-October given long foreshadowed rules forcing banks to hold larger loss-absorbing capital buffers.
By this time the entire Sydney property market was primed to be spooked. Auction clearance rates - which are a good sign of market sentiment and price growth - swiftly fell in the outer suburbs dipping sometimes into the 40s. Traditional auction hotspots, Sydney's inner west and eastern suburbs then took fright too.
Buyers just were not as prevalent - especially investors - and those who turned up kept their bidding restrained.
It is not quite lights out for the investor, but it has been getting darker, was how the valuation firm Herron Todd White has described the turn of events.
"We see the will is still present, but the ability to finance the dream is diminishing,' its November review advised as APRA's measures now extend well beyond the Sydney market into regional NSW.
The Australian Prudential Regulation Authority (APRA) recently released Quarterly Authorised Deposit-taking Institution (ADI) Property Exposures for the September 2015 quarter showing the slowing in lending to investors. The publication contains information on ADIs’ commercial property exposures, residential property exposures and new housing loan approvals. 
Key statistics for ADIs (excluding Other ADIs) for September 2015 were:  
<table border="1"><tbody>
<tr>
<th id="header1"> </th>
<th id="header2">September 2014</th>
<th id="header3">September 2015</th>
<th id="header4">Change</th>
</tr>
<tr>
<td headers="header1">Total commercial property exposures</td>
<td headers="header2" align="center">$224.5 billion</td>
<td headers="header3" align="center">$240.4 billion</td>
<td headers="header4" align="center">+7.1%</td>
</tr>
<tr>
<td headers="header1">Commercial property exposures within Australia</td>
<td headers="header2" align="center">$185.8 billion</td>
<td headers="header3" align="center">$201.1 billion</td>
<td headers="header4" align="center">+8.2%</td>
</tr>
<tr>
<td headers="header1">Total domestic housing loans</td>
<td headers="header2" align="center">$1,243.3 billion</td>
<td headers="header3" align="center">$1,354.8 billion</td>
<td headers="header4" align="center">+9.0%</td>
</tr>
</tbody></table>
 Key statistics for ADIs with greater than $1 billion in housing loans for September 2015 were: 
<table border="1"><tbody>
<tr>
<th id="header1"> </th>
<th id="header2">September 2014</th>
<th id="header3">September 2015</th>
<th id="header4">Change</th>
</tr>
<tr>
<td headers="header1">Number of housing loans</td>
<td headers="header2" align="center">5,086.7 thousand</td>
<td headers="header3" align="center">5,422.8 thousand</td>
<td headers="header4" align="center">+6.6%</td>
</tr>
<tr>
<td headers="header1">Average balance of housing loans</td>
<td headers="header2" align="center">$240,000</td>
<td headers="header3" align="center">$246,000</td>
<td headers="header4" align="center">+2.5%</td>
</tr>
<tr>
<td headers="header1">New housing loans approved in the quarter</td>
<td headers="header2" align="center">$84.8 billion</td>
<td headers="header3" align="center">$95.0 billion</td>
<td headers="header4" align="center">+12.0%</td>
</tr>
</tbody></table>
The Australian Prudential Regulation Authority data on showed the value of loan approvals for property investors fell to $32.39 billion in the three months to September 30 down from $40.55 billion in the June quarter.
Loans to property investors made up around 35 per cent of new lending approved in the September quarter, the lowest in the past two years, and down from around 43 per cent in the June quarter.
Analysts however are treating the data with some caution as <a href="/news/rba-concerned-at-inaccuracy-of-housing-lending-data-by-banks">several banks have been busy reclassifying billions of dollars in home loans</a>.
This article was first published in the Saturday Daily Telegraph.
</body></html>

The APRA impact on 2015 property investment

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
APRA's investment finance restrictions have led to a sharp fall in investor-related housing demand, according to CoreLogic RP Data research analyst Cameron Kusher.
CoreLogic RP Data's Property Pulse found June changes to lending practices around conditions for investment purposes contributed towards a substantial slowdown in lending. Higher mortgage rates, low rental yields and a maturing housing cycle are also drivers. 
Cameron Kusher said the reclassification of investor loans to owner occupier loans is also muddying the clarity of the housing finance data, adding the value of lending to investors is now lower than the value of lending to owner occupiers for new loans.
"The Australian Bureau of Statistics (ABS) has noted that over recent months many ADIs have been reclassifying some investor loans to owner occupier loans,” he said.
"At a state level the data is not published in seasonally adjusted terms, only raw figures. According to this data the value of lending to investors peaked in June 2015 and as ADIs have made changes to their lending policies, investor demand has waned. Between June 2015 and September 2015, the value of lending to investors has fallen in each state.
"As a result of the slowdown in lending to investors across each state, the value of new lending in most states is now greater to owner occupiers than it is to investors. It is important to note that historically, it has been very unusual for investors to be a greater part of the new lending environment than owner occupiers; however, this has been the case for most of the past year and a half."
 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<a href="/images/2015/11/19/Screen%20Shot%202015-11-19%20at%203-1.23.51%20PM.png" target="_blank">Click to enlarge</a>
</div>
</div>
</div>
</div>
<img src="/images/2015/11/19/Screen%20Shot%202015-11-19%20at%203-1.23.51%20PM.png" alt="" width="603" height="317"> 
<a href="/images/2015/11/19/Screen%20Shot%202015-11-19%20at%203.27.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/19/Screen%20Shot%202015-11-19%20at%203.27.43%20PM.png" alt="">
</div>
</div>
</div>
</div></body></html>

mick.cee-iDmgDDAmu8

APRA’s handbrake on investment lending starting to show: CoreLogic RP Data

<html><body><div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
Signs of slowing have emerged in Sydney property markets after the four major banks increased their standard variable interest rates to be slightly higher for investment loans over owner occupier loans to meet the APRA requirements, according to valuation firm Herron White Todd.
The banks had also introduced tougher loan-to-value standards in response to a move by regulators to rein in the riskier corners of the country’s house price boom, the HTW November review advised saying there was now often a maximum of 80% loan to value ratio for investors. 
"We have not seen the full effect this will have on the property market as yet, however we are seeing signs of slowing." 
The 80% was providing a significant buffer for the banks "however it becomes harder for an individual to actually save the 20% deposit or to use the existing equity in their primary dwelling or portfolio for the deposit.
"With fewer people able to access the 20% deposit, there will be fewer investors in the market," the valuation firm advised.
It suggested that this could lead to less demand and more supply which directly affects the value of a property. 
"There are signs that the market may be cooling," the report added noting there had been a continual decline in auction clearance rates in Sydney from low 80% in July 2015 to mid 60% in October 2015 according to Corelogic RP Data. 
"This is a combination of the record number of auctions listed (so volume sold as a percentage is decreased), the expectations of vendors to exceed prices that were being achieved by neighbours no more than three months ago and a decrease in the pool of purchasers as we enter into a new wait and see phase of the property cycle." 
The review indicated that it is fair to say that much of the growth in Sydney in the past eighteen months has been fuelled by the investor market.
"On the ground, completing the mortgage valuations, we have seen that this has been a combination of local buyers such as baby boomers using the equity in their main dwelling to purchase additional property for their superannuation, interstate investors who have heard the get rich quick scenarios and are banking on quick capital appreciation and overseas investors looking to build a property portfolio."
The report went on to say that given that the recent APRA changes took effect mid year, it was "too soon" to say what the full impact of the tightening of bank regulations has been on the property market but indications are that the regulations appear to be working.
"This change in criteria could have a positive impact on the first home buyer market which traditionally competes heavily with entry level investors and could open up opportunities for the owner occupier."
The review concluded by suggesting Herron Todd White believe the investor market in NSW will remain stable over the medium term as the banks have not made it impossible to buy an investment property, they have just tightened their criteria.
"These changes will not exclude people from entering the market as investors but force them to be in a more secure financial position before entering into any agreements."
The November review also suggested that in the past few years Sydney has also had the benefit of many new developments partially due to a change in approval policy; partially due to the underlying demand and supply imbalance in the market and partially due to the demands of the overseas investment market that is regulated by government to the purchase of new property only. 
"This product is appealing to investors and owner occupiers as developers and the government offer benefits such as reduced or no stamp duty, monetary incentives and non-monetary incentives. 
"We have seen new developments or off the plan purchases become the most popular because of the combination of incentives received and, due to the heat in the market, the assured capital appreciation from purchase to settlement.
"To date we have not become aware of any changes in these policies and can only assume they will remain for the foreseeable future however doubt over immediate capital appreciation may see some investors withdraw."
</div>
</div>
</div>
</div></body></html>

APRA

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

APRA

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News